So, what actually happens to your unused vacation days ?
It really depends on the employer’s policy and whether you are continuing to work for the same employer. The vacation days are annual, but are actually credited each month proportionate to the actual hours worked (full – part time) Too bad you can’t save up for 3 years and then rent a villa or something from sites like https://enjoymexico.net/rentals/cabo-san-lucas/villa-turquesa/. I know, that’s not allowed, but we can dream can’t we?
Employees who are terminated or resign, any remaining unused vacation days they have accrued are paid out on the last payslip.
Some employers have a policy of not carrying forward to the new tax year more than a certain amount of unused vacation days, anything over the amount is erased. This is meant to enhance employees to take vacation and not accrue them. This is also the law’s intent. This policy is legal as long as employee’s contracts specify it and notification is given well in advance, to allow the employees who haven’t utilized their vacation days to still do so.
If your employer doesn’t have a policy of erasing unused days, there may be a ceiling (max number of days) you can accrue. If not, then any unused days will be paid to you when you resign or are terminated.