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No, a "use-it-or-lose-it" policy, in which employees lose earned vacation that is not taken by a specific time, is prohibited.
Legal alternatives to "use-it-or-lose-it" policies are to allow carry over of unused vacation, implement reasonable caps on vacation and cash-out policies. All accrued but unused vacation must be paid out at the termination of the employment relationship, at the final rate of pay, even if the employee was not yet eligible to take the vacation time.
Read more about Vacation in the HR Library.