15. Can employers require their employees to take annual leave in the leave year in which it is accrued? If employees do not take all annual leave in the leave year in which it is accrued, can employers forfeit untaken annual leave?
As far as the statutory annual leave is concerned, employers cannot require employees to take leave in the leave year in which it is accrued. Employees should take it within the following period of 12 months. Employers cannot forfeit untaken statutory annual leave. Only employees are entitled to choose to accept payment in lieu of the part of their leave entitlement, and only if it exceeds 10 days.
On the other hand, contractual annual leave (that is, the annual leave granted by contract in addition to the statutory entitlement) will be governed by the employment contract. If the contract provides that the untaken contractual leave can be forfeited under certain reasonable conditions, this is usually enforceable.