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Vacation & Vacation Pay

 
Vacation Pay
Annual Vacation
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Vacation Pay

Who gets Vacation pay?

Any 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, inlcuding commissions and overtime for employees who have worked less than 15 continuous years. Vacation pay is calculated as 6% of gross earnings for employees with 15 years or more continuous years of 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 one 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, i.e.; Employment Insurance premiums, Income Tax and 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?

Two weeks, if the employee has worked at least 90% of the normal working hours in a continuous 12 month period.

After 15 years of continuous service with the same employer, the vacation is 3 weeks.

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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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.

Vacation time can be taken in one unbroken 2 week period or 2 unbroken periods of 1 week.

An employee entitled to 3 weeks vacation shall be permitted to take the vacation in 1 unbroken period of 3 weeks, in 2 unbroken periods of 2 weeks and 1 week respectively or in 3 unbroken periods of 1 week.

(section 8 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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