Unused Vacation Days Approaching Expiry: What It Means and When They Are Lost

Unused Vacation Days: Understanding the Law and Consequences

Unused vacation days must be taken by the employee within 18 months following the end of the accrual year.
This means that vacation days accrued but not used two years ago and still present in the payslip will expire by June 30th.

Many workers fear losing their vacation days once the deadline passes but there is no need to panic or beg the employer to use up the remaining days before the expiration date.

Legal Provisions

While the law is clear that all vacation days must be taken within 18 months after the accrual year, the June 30 deadline is of more concern to the company than the worker.
In fact, there are no consequences for the employee when vacation days expire as they can still be used later if needed.

It is the employer who faces potential penalties for having unused vacation days in the payslip after June 30.
The company may have to pay fines for such infringements, depending on the number of employees affected.

Payment and Taxation

If an employee decides not to take their unused vacation days, can they be paid for them? According to the law, vacation days cannot be monetized while the employment relationship is ongoing.
However, in case of a fixed-term contract ending soon, such as for teachers with short-term contracts expiring on June 30, the accrued vacation days can be paid upon termination.

Unused Vacation Days in the School System

For teachers and educators, the handling of unused vacation days varies depending on the type of contract and duration.
While it is challenging to monetize unused vacation days for permanent teachers, those with short-term contracts may have the option to have them paid, with certain deductions.

Conclusion

Understanding the legal framework surrounding unused vacation days is essential for both employees and employers.
By following the stipulated guidelines, workers can ensure they make the most of their entitled time off, while companies can avoid penalties and maintain compliance with labor laws.