Kara Sears
In Canada, employees are entitled to a minimum of two weeks of paid vacation per year in most provinces, with this number increasing to three weeks after five years of service. Vacation pay is accrued during the first year of employment and is usually calculated as a percentage of gross wages earned during that time. This percentage varies across the provinces, with some offering a flat rate of 4% and others offering a graduated scale that increases with tenure. Employers are required to provide this vacation time and employees must take this time off, with the timing determined by the employer, who must give at least two weeks' notice.
| Characteristics | Values |
|---|---|
| Minimum vacation time | 2 weeks after each of the first 4 years of employment |
| --- | 3 weeks after 5 or more years of employment |
| Minimum vacation pay | 4% of gross wages for the first 5 years on the job |
| --- | 2% increase after 5 years of employment |
| Maximum vacation time | Depends on the province. Saskatchewan starts at 15 days. |
| Notice period | At least 2 weeks before the vacation start date |
| Holiday pay | Employees are entitled to a day off with pay for 10 general holidays |
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What You'll Learn
Annual vacation time and pay
In Canada, employees are entitled to a minimum of two weeks of paid vacation time after each of their first four years of employment. After five consecutive years, this increases to three weeks of paid vacation. This is the minimum requirement, and employers can offer more paid vacation time if they wish.
The specifics of paid vacation vary across regions. For example, in Ontario, employees earn two weeks of annual vacation after their first year of employment, while in Quebec, employees get two weeks for the first five years and three weeks thereafter. In Alberta, employees are entitled to two weeks of paid vacation after each of the first four years of employment, and three weeks after five consecutive years. In British Columbia, employees get two weeks of annual vacation after 12 months of employment, and three weeks after five years.
Vacation pay is based on an employee's wages and is usually calculated as a percentage of the gross wage. For the first five years on the job, workers earn a 4% vacation pay, which increases to 6% after five years of employment. Employees who work on general holidays are entitled to be paid at least 1.5 times their basic rate of wages for the hours worked on that day.
Employees must take their vacation time within four to 12 months of earning it. Employers can schedule vacation time according to business needs, but they must give at least two weeks' notice of the start date. Employees can request to take their vacation in shorter periods, and this should be accommodated where possible.
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Holiday pay
In Canada, employees usually start earning vacation pay immediately upon being hired. They can begin taking paid vacation days after one year of employment. Vacation pay is usually a percentage of an employee's gross wage. This percentage is typically 4% for the first five years on the job and increases to 6% after five years of employment. However, the percentage may vary based on the province and specific employment contracts.
The calculation of vacation pay differs based on whether an employee is paid a monthly salary or is paid hourly, weekly, or by commission. For employees paid a monthly salary, the employer must pay their regular rate for the time of their vacation. Each week of vacation pay is calculated by dividing the monthly wage by 4.3333 (the average number of weeks in a month). For employees paid hourly, weekly, or by commission, the employer must pay at least the minimum rate required by legislated standards, and this rate must be communicated before the start of the pay period.
Employees in Canada are generally entitled to a minimum of two weeks of vacation time after each of the first four years of employment, also known as the "year of employment." After five consecutive years of employment, this entitlement increases to three weeks of vacation time. The "year of employment" is important because it determines when an employee is eligible for vacation time and pay. It is also essential to note that vacation time and pay are separate entitlements, and employees must take their vacation time within 12 months of earning it.
Additionally, there are provisions for general holidays, where employees are entitled to a day off with pay. If an employee is required to work on a general holiday, their employer must pay them at least 1.5 times their basic rate of wages for that day. If an employee does not work on the general holiday but was available to work, they are still entitled to holiday pay.
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Vacation pay calculation
In Canada, vacation pay is a crucial aspect of employee wages, and employers have to factor in vacation pay when doing their payroll. The specifics of paid vacations vary across regions, so it is important to learn about your province’s guidelines to ensure compliance with the law.
Vacation pay is a percentage of the gross wages earned during the "year of employment". This percentage is typically 4% or 6%, depending on the length of employment. For instance, in Ontario, employees earn 4% vacation pay for the first five years on the job and 6% after five years of employment. Employees in Quebec follow the same percentages, but their entitlement is two weeks for the first five years and three weeks after five years of employment.
For employees paid by a monthly salary, the employer must pay the employee’s regular rate of pay for the time of their vacation. Each week of vacation pay is calculated by dividing their monthly wage by 4.3333 (the average number of weeks in a month). For employees who are paid hourly, weekly, or by commission or other incentive pay, the employer must pay at least the minimum required by the legislated standards.
Employers are required to provide an annual vacation to most employees based on length of service. Employees must work for one year before they are entitled to vacation time, and they must take the vacation they are entitled to within 12 months of earning it. An employer is required to give at least two weeks' notice of the vacation start date.
Additionally, employees continue to earn vacation time and pay during the leave period. If an employee's contract is terminated, the employer must “pay out” any vacation pay owed for the prior completed "year of employment" within 30 days.
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Minimum vacation time
The minimum vacation time in Canada depends on the province and the length of employment. In Ontario, for instance, employees are entitled to two weeks of vacation after each 12-month vacation entitlement year for the first four years, and three weeks of vacation after five or more years of employment. This is also the case in Alberta and British Columbia. In Quebec, employees get two weeks of vacation for the first five years and three weeks after five years of employment.
In Ontario, employees who do not complete the full vacation entitlement year do not qualify for vacation time, but they do earn vacation pay as they earn wages. This means that if an employee works even just one hour, they are entitled to at least 4% of the hour's wages as vacation pay. In Alberta, employees must take their vacation time within 12 months of earning it.
In British Columbia, employees earn vacation time during their first year of employment. After 12 months, they get two weeks of annual vacation, and after five years, they are entitled to three weeks. Employees in British Columbia must take time off for their annual vacation and receive vacation pay. They cannot skip taking vacation time and just receive vacation pay.
In Canada, employees usually start earning vacation pay immediately when hired, and they can start taking paid vacation days after one year of employment. Vacation pay is usually a percentage of the gross wage, typically starting at 4% for the first five years and increasing to 6% after that.
Some provinces may allow employees to take vacation time in one week or two separate weeks. If an employee's vacation time coincides with a statutory holiday, the employer must give the employee an extra day.
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General holiday entitlements
In Canada, vacation entitlements vary across provinces, and employers are allowed to deny requests for vacation at specific times due to operational reasons. However, employers must provide an annual vacation to most employees based on length of service to ensure they can rest from work without loss of income.
Annual vacation entitlements
Employees must work for one year before they are entitled to vacation time, and they must take the vacation they are entitled to. The minimum vacation time an employee is entitled to during 12-month periods is as follows:
- Two weeks with pay after each of the first four years of employment
- Three weeks with pay after five consecutive years of employment
Employees can ask to take vacation days before earning them, and if an employer allows this, it does not affect an employee's vacation entitlement later on, unless the employer explains this at the time. Employees must take their vacation time within 12 months of earning it.
Vacation pay
Vacation pay is based on an employee's wages paid for work, and it must be paid at least seven days before an employee starts their annual vacation time. If the employee and employer agree in writing, it can be paid out on every paycheque instead. Vacation pay is usually a percentage of the gross wage, and employees earn vacation pay as they earn wages.
General holidays
Employees are entitled to a day off with pay for the following 10 days, which are called general holidays:
- New Year's Day
- Good Friday
- Easter Monday
- Victoria Day
- Canada Day
- Civic Day
- Labour Day
- Thanksgiving Day
- Christmas Day
- Boxing Day
If one of these general holidays falls on a Saturday or Sunday that is not a scheduled work day, the employee is entitled to a holiday with pay on the scheduled work day immediately before or after the general holiday. If one of the other general holidays falls on a non-work day, then a holiday with pay may be added to the employee's annual vacation.
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Frequently asked questions
Employees in Canada are entitled to a minimum of two weeks of vacation time after each of their first four years of employment. After five years of employment, this increases to three weeks of vacation time.
In Canada, employees usually start earning vacation pay immediately when they are hired. Vacation pay is typically calculated as a percentage of gross wages, with employees earning 4% of their gross wages for the first five years and 6% after that.
Employees can start taking paid vacation days after one year of employment. However, some employers may allow employees to take vacation days in advance, which may affect their vacation entitlement.
Yes, employers can deny requests for vacation at specific times due to operational reasons. If there is a disagreement between the employer and employee, the employer has the final say but must give at least two weeks' notice in writing of the vacation start date.
