Reaching the end of the year without having taken all the vacation days you're entitled to raises a common question: are they lost, can they be carried over to the following year, or do they need to be paid out? The answer depends largely on why you didn't take them.
The general rule: vacation must be taken within the calendar year
Generally speaking, the right to vacation must be exercised within the calendar year in which it's accrued (or within the period set by the applicable collective bargaining agreement if different), and there is no automatic right, as a general rule, to carry it over indefinitely to later years simply because the employee or employer decides to.
Why it can't be paid out in cash while the contract is still active
As explained in another article on vacation settlement, while the employment relationship is still active, the right to vacation cannot be replaced with a cash payment: the purpose of rest isn't fulfilled simply by paying the equivalent amount, except at the point the contract ends, when the unused portion is indeed settled financially.
The key exception: sick leave
There's an important exception established by case law, backed by EU regulation: if an employee has been unable to take their vacation within the calendar year because of a temporary incapacity (sick leave) that extended through that period, they're entitled to take it later, even after the calendar year in question has ended and, in certain cases, even beyond the following year, when the inability to take the leave was due to this cause beyond their control.
What happens if it's the employer who wouldn't let you take it
If you haven't been able to take your vacation because the employer didn't allow it (due to operational needs, workload, or other reasons attributable to the company), the situation gives rise to the employee's right to take that vacation, and the employer's repeated refusal to allow it can amount to a serious breach of its obligations, with the corresponding legal consequences if the employee decides to file a claim.
Why it's worth planning the vacation schedule in advance
The vacation schedule should generally be set with a minimum amount of advance notice (usually at least two months before the start of the period), precisely to avoid unwanted accumulation at year-end due to a lack of prior planning between employee and employer.
What to do if you find yourself with unused vacation near year-end
If you're approaching the end of the calendar year with pending vacation you haven't been able to plan, it's worth formally raising the situation with the company as soon as possible, putting the request in writing, rather than simply assuming the days are automatically lost.
If your contract ultimately ends with vacation still pending
In that case, that vacation is paid out as part of your severance settlement. Our severance pay calculator helps you estimate that amount.