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Advisory 99/1 Page 1 of 2 An acceptable variation of an accrual cap is the vacation policy known as “use it or lose it.” Under this policy, employees must use all of their accumulated vacation time by a certain period of time or lose all or part of it.. However, a policy that provides for employees to earn a given amount of vacation “a year,” “per year,” “on their anniversary date,” or “every six months” is not clear because the definitions of the time periods are imprecise and subject to confusion concerning their start and end dates.. Annual Leave Some employers combine sick leave, personal leave, vacation leave, and/or other types of leave into one general category called “annual leave.” This combined leave is also called paid time off, earned time, or paid days off..
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