Vacation and Vacation Pay

Employees who have worked for the same employer for 5 years or less can take at least 2 weeks of paid vacation after 12 months of continuous work. Employees who have worked for more than 5 years are entitled to at least 3 weeks of paid vacation after 12 months of continuous work. 

Vacation pay is 4 per cent of an employee’s total earnings for 2 weeks of vacation and 6 per cent for 3 weeks of vacation. Paid vacation time must be given within four months after the 12-month work period ends, unless the employer and employee agree to a different time. Employees must be given at least 1 weeks' notice before their vacation starts. At least 1 day before the vacation begins, the employee must be paid 4 percent or 6 percent of their wages from the past 12 months, depending on how long they have worked for the employer. If the employment ends and the employee has worked less than 12 continuous months since the last time the employee qualified for a paid vacation, they can receive: 

1. four percent of total earnings as vacation pay if they have worked for the employer for 5 continuous years or less; or 
2. six percent of total earnings as vacation pay if they have worked for the employer for more than 5 continuous years. The employee must be paid their vacation pay by the end of the next regular pay period after their job ends. 

Part-time, Year-round Employment 

An employee who works or who will work for an employer: 

1. for 12 continuous months; and 
2. works for less than 90 per cent of the employer’s normal working hours can request vacation pay instead of vacation time. 

An employee can choose to receive vacation pay instead of taking time off by giving written notice to the employer before either the end of the 12-month period or the employee’s first pay period. The employer must then pay the vacation pay after that period ends.  

Seasonal Employment 

For seasonal and short-term employees, an employer may include vacation pay in the employee’s regular pay if: 

1. the employer can show that the employee knows the vacation pay is included in their regular pay; 
2. the employer’s payroll records show that vacation pay was already paid to the employee; and 
3. the employee’s pay statement shows that vacation pay was included in their pay. 

If the above things are not followed, the inspector may decide that vacation pay was not paid and require the employer to pay it. 

If an employer and employee agree to a better vacation pay than what the law requires, that agreement will be followed.

When a paid holiday happens during the employee’s vacation period, the employee’s vacation must be lengthened by one day and the employee must be paid for that day. 

Statutory deductions apply to vacation pay. 

Paid sick leave cannot be considered vacation pay or pay in lieu of vacation.