Final answer:
Annual leave can be forfeited if not taken within the stipulated time, if accrued beyond the carry-over limit, or upon termination of employment, depending on company policy and local laws.
Step-by-step explanation:
Annual leave can be forfeited in several ways, depending on the policies of the organization and the jurisdiction within which it operates. However, there are three common scenarios in which employees might forfeit their annual leave:
- If an employee does not take their leave within the stipulated time frame, known as the 'use-it-or-lose-it' policy, where leave not taken within the leave year is forfeited.
- When an employee has accrued more leave than they are permitted to carry over to the next period, and they have not used this excess before the carry-over deadline.
- In cases of termination of employment, depending on the terms of the employment contract and local employment laws, unused annual leave may be forfeited if not taken before the end of employment.
It is important for employees to be familiar with their organization's leave policy and any legislative requirements to ensure they do not unintentionally forfeit their entitled annual leave.