Glossary
Use-It-or-Lose-It
A policy where unused leave is forfeited at the end of a period instead of carrying over.
A use-it-or-lose-it policy means leave not taken by a deadline (usually year-end) is lost rather than rolled over or paid out. It encourages people to actually take their time off and caps liability.
Legality varies by jurisdiction — some US states treat accrued vacation as earned wages that can't be forfeited. Always check local law and put the rule in writing.
Example: An employee who doesn't use 3 remaining days before December 31 loses them under a use-it-or-lose-it policy.
In Orvella: Orvella can enforce expiry where it's legal, and shows projected balances so staff use time before any deadline.