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Vacation & Vacation Pay

 
Vacation Pay
Annual Vacation
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Vacation Pay

Who gets Vacation pay?

An employee who has been employed for 5 work days or more.

(section 9.(3) of the Labour Standards Act)

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How is vacation pay calculated?

Vacation pay is calculated as 4% of gross wages, including commissions and overtime for employees who have worked less than 15 continuous years with the same employer. Vacation pay is calculated as 6% of gross earnings for employees with 15 years or more of continuous employment with the same employer.

(section 9.(1)(a)(b) of the Labour Standards Act)

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When must an employee receive vacation pay?

At least 1 day before going on vacation or it may also be paid each pay period as long as the employee is advised and the amount of vacation pay is indicated in the employer's payroll.

(section 10 of the Labour Standards Act)

If an employee does not qualify for an annual vacation, there is still an entitlement to vacation pay - provided the employee has been employed by the employer for at least 5 work days. An employee who qualifies for vacation pay must be paid the vacation pay within 1 week of the termination of employment.

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Are there any deductions to be taken from vacation pay?

Vacation pay is subject to all statutory deductions for example:

  • Employment Insurance contributions
  • Income Tax
  • Canada Pension Plan contributions

(section 2.(i), 5 of the Labour Standards Act)

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Annual Vacation

Who qualifies for annual vacation?

To qualify for an annual vacation, an employee must have been employed with the employer for at least 12 months and have worked at least 90% of the available working hours.

(section 8(a) of the Labour Standards Act)

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How many weeks of vacation does an employee receive?

An employee with less than 15 years of continuous service with the same employer, the vacation time is 2 weeks per year.

An employee with 15 or more years or more of continuous service with the same employer, the vacation time is 3 weeks per year.

(section 8(1(1.1)) of the Labour Standards Act)

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When can vacation be taken by employees?

The employer shall give the employee at least 2 weeks written notice of when vacation is to commence.

An employee who has less than 15 years of continuous employment with the same employer is entitled to 2 weeks vacation.

    The employee shall be permitted to take in either:
  • 1 unbroken 2 week period
  • 2 unbroken periods of 1 week
  • An employee who has 15 years or more of continuous employment with the same employer is entitled to 3 weeks vacation. The employee shall be permitted to be take the vacation time in either

    • 1 unbroken period of 3 weeks
    • 2 unbroken periods of 2 weeks and 1 week respectively
    • unbroken periods of 1 week

    (section 8 of the Labour Standards Act)

    The employee must be permitted to take this vacation within 10 months of the time they qualify for it.

    (section 8(1(1.1)) of the Labour Standards Act)

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    Can the employer cancel and employee's vacation if it was previously agreed to?

    The employer may cancel an employee's vacation but must compensate the employee for reasonable expenses that cannot be recovered by the employee as a result of the vacation being cancelled.

    (section 8(5) of the Labour Standards Act)

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