Tell us what you think about the information on this page and how you’re using it. Take our survey.

Vacation time and vacation pay

This employment standard has two parts: vacation time and vacation pay. Some employees have jobs that are exempt from the vacation with pay provisions of the ESA. For more information on these job categories, please see the special rule tool.

Employees with less than five years of employment are entitled to two weeks of vacation time after each 12-month vacation entitlement year. Employees with five or more years of employment are entitled to three weeks of vacation time. Ordinarily, a vacation entitlement year is a recurring 12-month period beginning on the date of hire. Where the employer has established an alternative vacation entitlement year that begins on a date other than the date of hire, the employee is also entitled to a pro-rated amount of vacation time for the period (called a "stub period") that precedes the alternative vacation entitlement year.

Vacation pay must be at least four per cent of the gross wages (excluding any vacation pay) earned in the 12-month vacation entitlement year or stub period (where that applies) for employees with less than five years of employment. Employees with five or more years of employment at the end of a 12-month vacation entitlement year or stub period (if any) are entitled to at least six per cent of the gross wages earned in the 12-month vacation entitlement year or stub period.

An employee's contract of employment or a collective agreement may provide a greater right or benefit with respect to vacation time and/or pay.

An employee who does not complete either the full vacation entitlement year or the stub period (if any) does not qualify for vacation time under the ESA. However, employees earn vacation pay as they earn wages. Therefore, if an employee works even just one hour, they are still entitled to at least four per cent (or six per cent, depending on length of employment) of the hour's wages as vacation pay.

Key definitions

The increased entitlements to vacation time and vacation pay (three weeks' vacation time and six per cent vacation pay) for employees with five or more years of employment only apply to vacation entitlement years or stub periods that end on or after December 31, 2017. Employers are not required to provide the increased entitlements if the vacation entitlement year or stub period ended before December 31, 2017.

Vacation entitlement year
The 12-month period over which employees earn vacation.
Standard vacation entitlement year
A recurring 12-month period beginning on the date of hire.
Alternative vacation entitlement year
A recurring 12-month period chosen by the employer to begin on a date other than the employee's date of hire (e.g. employee hired June 1 but employer establishes alternative vacation entitlement year commencing January 1).
Stub period

Period between the date of hire and beginning of the first alternative vacation entitlement year or, the period between the end of a standard vacation entitlement year and the beginning of an alternative vacation entitlement year where the employer switches from a standard vacation entitlement year to an alternative vacation entitlement year (e.g. If an employer has chosen an alternative vacation entitlement year that runs January 1 to December 31 and the employee is hired on September 1, the stub period will be September 1 to December 31).

Vacation entitlement year and stub period will include time the employee spends away from work because of:

  • layoff
  • sickness or injury
  • pregnancy, parental, declared emergency, family caregiver, family medical, critical illness, organ donor, reservist, domestic or sexual violence, child death, or crime-related child disappearance leaves
  • any other approved leaves (i.e. where there is no break in the employment relationship).
Transitional rules
The increased entitlements to vacation time and vacation pay (three weeks’ vacation time and six per cent vacation pay) for employees with five or more years of employment only apply to vacation entitlement years or stub periods that end on or after December 31, 2017. Employers are not required to provide the increased entitlements if the vacation entitlement year or stub period ended before December 31, 2017.

Example 1:

On March 1, 2017, Oakley had completed four years of employment with his employer. He has an alternative vacation entitlement year that runs from November 1 to October 31. Oakley was entitled to two weeks of vacation time and four per cent vacation pay (accrued on the wages earned during the vacation entitlement year) upon completing the vacation entitlement year that began November 1, 2016, and ended October 31, 2017.

However, for the vacation entitlement year that began on November 1, 2017, and ends on October 31, 2018, Oakley is entitled to three weeks of vacation time and six per cent vacation pay accrued on the wages earned during that vacation entitlement year. That's because he had five years of employment upon completing that vacation entitlement year, which ended on or after December 31, 2017.

Oakley is entitled to three weeks of vacation time and six per cent vacation pay upon the completion of each vacation entitlement year thereafter.

Example 2:

Jamieson was hired by his employer on June 1, 2001. He has a standard vacation entitlement year that runs from June 1 to May 31. He earned two weeks of vacation time and four per cent vacation pay (accrued on the wages earned during the vacation entitlement year) upon completing each of those years between his date of hire and May 31, 2017. Despite the fact that he had more than five years employment as of May 31, 2006, Jamieson was not entitled to the increased vacation entitlements because those vacation entitlement years ended prior to December 31, 2017.

However, for the vacation entitlement year that began on June 1, 2017, and ended May 31, 2018, Jamieson earns three weeks of vacation time and six per cent vacation pay (accrued on the wages earned in that vacation entitlement year) because that year ends on or after December 31, 2017.

Jamieson is entitled to three weeks of vacation time and six percent vacation pay upon the completion of each vacation entitlement year thereafter.

Vacation time

The entitlement to two or three weeks of vacation time is determined by the employee's period of employment upon completion of each vacation entitlement year. If the employee has been with the employer for less than five years at the end of the vacation entitlement year, the employee is entitled to two weeks of vacation time for that year. Likewise, if the employee's period of employment is five years or more upon the completion of the vacation entitlement year, the employee's entitlement is three weeks of vacation time for that year.

For example, an employee who reaches the five-year employment threshold 10 months before the end of the vacation entitlement year and an employee who reaches that threshold just one day prior will both be entitled to three weeks of vacation for that vacation entitlement year.

An employment contract or collective agreement may provide a greater vacation time entitlement.

Standard vacation entitlement year

If the vacation entitlement year is a standard one, 12 months after the date of hire, the employee will be entitled to a minimum of two weeks of vacation time. The employee will also be entitled to two weeks after completing each of the next four 12-month vacation entitlement years. The employee will then be entitled to three weeks of vacation after completing the fifth vacation entitlement year and for each vacation entitlement year thereafter.

Example: standard vacation entitlement year

Ava is hired on June 1, 2014. She has a standard vacation entitlement year that runs from June 1 of each year to May 31 of the following year: Ava earns two weeks of vacation upon completing her first vacation entitlement year that runs June 1, 2014 to May 31, 2015. She also then earns two weeks in each of the following three vacation entitlement years:

  • June 1, 2015, to May 31, 2016
  • June 1, 2016, to May 31, 2017
  • June 1, 2017, to May 31, 2018

On May 31, 2019, Ava has completed five years of employment and so will be entitled to three weeks of vacation for the vacation entitlement year June 1, 2018 to May 31, 2019. Her vacation time entitlement will be three weeks for each completed vacation entitlement year thereafter.

Alternative vacation entitlement year

If an employer sets an alternative vacation entitlement year, the employee will be entitled to a pro-rated amount of two weeks' vacation for the stub period preceding the start of the first alternative vacation entitlement year. The employee will then be entitled to a minimum of two weeks of vacation time after completing each alternative vacation entitlement year until the employee reaches the five-year employment threshold. Upon completing the vacation entitlement year in which the employee reaches five years, the employee will be entitled to three weeks of vacation time for that vacation entitlement year and for each vacation entitlement year thereafter.

Example: alternative vacation entitlement year

Jocelyn was hired on September 1, 2017. The employer has established an alternative vacation entitlement year that runs from January 1 to December 31. That means that Jocelyn's stub period is from September 1, 2017, to December 31, 2017. She is entitled to a pro-rated vacation based on two weeks for the stub period. (See how to calculate this entitlement in the section "Calculating stub period vacation entitlements"). Her first vacation entitlement year will be January 1, 2018, to December 31, 2018. Upon completing those 12 months, she will have earned two weeks of vacation time for the vacation entitlement year because she has been employed for less than 5 years. Jocelyn will have completed five years of employment on August 31, 2022.

Jocelyn will also be entitled to two weeks of vacation time upon completing each of the following vacation entitlement years:

  • January 1 to December 31, 2019
  • January 1 to December 31, 2020
  • January 1 to December 31, 2021

Since Jocelyn will have reached the five-year employment threshold on August 31, 2022, she will be entitled to three weeks of vacation time for the completed vacation entitlement year ending December 31, 2022. She will then be entitled to three weeks of vacation time for each completed vacation entitlement year thereafter.

Note: An employee who does not complete either the full vacation entitlement year or the stub period (if any) does not qualify for vacation time under the ESA. However, employees earn vacation pay as they earn wages. So if an employee who is paid by the hour works even just one hour, they are still entitled to four per cent or six per cent of the hourly wage as vacation pay.

Calculating stub period vacation entitlements

When the employee has a regular work week

The vacation time entitlement for a stub period is calculated as two or three weeks of vacation (two weeks for employees with less than five years of employment and three weeks for employees with 5 or more years) multiplied by the ratio (R) of the length of the stub period to 12 months.

Note: The calculation of the stub period entitlement will be based on three weeks of vacation only if an employer converts from a standard vacation entitlement year to an alternative one and the employee has five or more years of employment upon completion of the stub period (see example 2 below).

Example 1:

  • An employee has a regular work week.
  • The employee was hired September 1 and the alternative vacation entitlement year begins the following January 1.
  • Stub period is September 1 to December 31 (4 months)

Calculation of vacation entitlement for the stub period: 2 weeks × R (ratio of stub period to 12 months) where R = 4 months/12 months

2 weeks × 4/12 = 2/3 of a week.

Example 2:

  • Employee has a regular work week.
  • Employee hired September 1, 2014 and has a standard vacation entitlement year that runs September 1 to August 31 each year.
  • The employer advises that at the end of the employee's fifth year of employment (August 31, 2019) the employee will be switching to an alternative vacation entitlement year beginning January 1, 2020. [Note: The employee had five years of employment upon completion of the standard vacation entitlement year that ended August 31, 2019 and so was entitled to three weeks' vacation for the vacation entitlement year that began September 1, 2018 and ended August 31, 2019.]
  • The employee's stub period preceding the alternative vacation entitlement year runs from September 1, 2019 to December 31, 2019.
  • The employee will have more than five years of employment upon completion of the stub period so will be entitled to a pro-rated amount of three weeks in respect of that stub period calculated as follows:

Calculation of vacation entitlement for stub period: 3 weeks X R (ratio of stub period to 12 months) where R = 4 months (September 1 to December 31) divided by 12 months.

3 weeks X 4/12 = one week

When the employee does not have a regular work week

In this scenario, the vacation entitlement for a stub period is calculated as two or three weeks (two weeks for employees with less than five years of employment and three weeks for employees with five or more years) times the average number of days worked per work week during the stub period (A) multiplied by the ratio of the length of the stub period to 12 months (R).

Note: The calculation of the stub period entitlement will be based on three weeks of vacation only if an employer converts from a standard vacation entitlement year to an alternative one and the employee has five or more years of employment upon completion of the stub period.

Example:

  • Employee does not have a regular work week.
  • Employee hired September 1 and alternative vacation entitlement year begins the following January 1.
  • Stub period is September 1 to December 31 and there are 17 work weeks in the stub period. The employee worked a total of 51 days in those 17 work weeks.

Calculation of vacation entitlement for stub period: 2 weeks X A X R where

A= 51days/17 work weeks and R = 4 months/12 months

2 weeks X 51/17 X 4/12 (or 2 weeks x 3 days/week X 1/3) = 2 days

Deadlines for taking vacation

The vacation time earned for a vacation entitlement year or a stub period must be taken within 10 months after completing that year or stub period. The employer has the right to schedule vacation as well as an obligation to ensure the vacation time is scheduled and taken before the end of that 10-month period.

Example

Riley was hired on February 24, 2018. His employer established an alternative vacation entitlement year of July 1 to June 30. The pro-rated amount of vacation time that Riley earned for the stub period of February 24, 2018, to June 30, 2018, must be taken within 10 months of the end of the stub period (that is, within 10 months of June 30, 2018). The vacation time Riley earned for the entitlement year of July 1, 2018 to June 30, 2019, would have to be taken within 10 months of the end of the vacation entitlement year (that is, within 10 months of June 30, 2019).

If the deadline under the ESA for taking a vacation comes up when an employee is on pregnancy, parental, sick, family responsibility, bereavement, declared emergency, family caregiver, family medical, critical illness, organ donor, reservist, domestic or sexual violence, child death or crime-related child disappearance leave, the vacation must be taken when the leave ends or at a later date with the agreement (in writing) of the employer and the employee.

Likewise, if an employee's contract requires that some or all of their vacation must be taken within a specified period that comes up when the employee is on a leave and the employee would otherwise have to give up some or all of their vacation entitlements under the contract, the employee may defer taking the vacation until the leave ends or take it a later date with the agreement (electronically or in writing) of the employer and employee.

How to schedule vacation time earned for a vacation entitlement year

For employees whose period of employment is less than five years, employers are required to schedule the vacation time earned each vacation entitlement year in a block of two weeks or in two one-week blocks. For employees whose period of employment is five years or more, employers must schedule the vacation time earned each vacation entitlement year in a block of:

  • three weeks
  • a two-week period and a one week period, or
  • three periods of one week

The exception in both cases is if the employee makes a written request and the employer agrees electronically or in writing to shorter periods. In that case, it is necessary to calculate the number of single vacation days to which the employee is entitled.

Calculating single vacation days earned for a vacation entitlement year

Example: When the employee has a regular work week

The employer takes the number of days in the employee's work week and multiplies that number by 2.

  • The employee regularly worked Monday, Wednesday and Friday or three days a week in the preceding vacation entitlement year.
  • The employee is therefore entitled to 6 single vacation days in respect of that vacation entitlement year.

Example: When the employee does not have a regular work week

The employer calculates the average number days worked in each week in the most recently completed vacation entitlement year and then multiplies that number by 2.

  • The employee worked a total of 149 days in the preceding vacation entitlement year.
  • There are 52.14 weeks per year.
  • The average number of days worked per week in the year would be 149 days divided by 52.14 weeks per year = 2.86 days
  • The single vacation days the employee would be entitled to in respect of that year would be 2 ×  2.86 days or 5.72 days of vacation.

Note: the above examples apply to an employee with less than 5 years of employment. Multiply by 3 for employees with 5 or more years of employment upon completion of the vacation entitlement year.

How to schedule vacation time earned for a stub period

The vacation time earned for a stub period is calculated as single days based on the formulas set out in the section "Calculating stub period vacation entitlements."

If the amount of vacation time earned is between two and five days inclusive, the vacation days must be taken consecutively, unless the employee requests electronically or in writing and the employer agrees electronically or in writing to shorter periods.

If the amount of vacation time earned with respect to the stub period is more than five days, five days must be taken consecutively and any additional days may be taken together with those five days or in a separate period of consecutive days. However, the employee may request electronically or in writing and the employer may then agree to schedule the vacation in shorter periods.

Forgoing vacation time

An employee can give up some or all of their earned vacation time with the employer's electronic or written agreement, and the approval of the Director of Employment Standards. This approval does not affect an employer's obligation to pay the employee vacation pay; employees may give up vacation time, but not the right to vacation pay

Vacation pay

Employees must receive a minimum of either four per cent or six per cent of the gross wages (excluding vacation pay) they earned for the 12-month vacation entitlement year or stub period.

  • An employee whose period of employment is less than five years upon completion of a vacation entitlement year or stub period is entitled to vacation pay calculated as four per cent of all the wages (excluding vacation pay) earned in the vacation entitlement year or stub period.
  • An employee whose period of employment is five years or more upon completion of a vacation entitlement year or period is entitled to vacation pay calculated as six per cent of all the wages (excluding vacation pay) earned during the vacation entitlement year or stub period.
  • An employee who reaches the five-year employment threshold partway through the vacation entitlement year or stub period is entitled to vacation pay calculated as six per cent of all the wages (excluding vacation pay) earned in the vacation entitlement year or stub period. (It doesn't matter whether the employee's period of employment was five years or more when the vacation entitlement year or stub period began, or if the employee reached that threshold partway through).

Example 1: An employee has less than five years' employment on completion of a vacation entitlement year

Janice works part-time and earned gross wages of $16,000.00 in her vacation entitlement year. She is entitled to four per cent of $16,000.00 as vacation pay--$640.00.

Example 2: An employee has less than five years' employment on completion of a stub period

Jocelyn was hired on September 1 and her employer has established an alternative vacation entitlement year that runs from January 1 to December 31. That means that Jocelyn's stub period is from September 1 to December 31. She earned $13,050 in the stub period. She is entitled to four per cent of $13,050 as vacation pay, i.e. $522.00.

Note: Her first vacation entitlement year is January 1 to December 31. When she completes that vacation entitlement year, she will have earned four per cent vacation pay on the wages earned in that vacation entitlement year because she has been employed for less than 5 years.

Example 3: An employee has more than five years' employment on completion of a vacation entitlement year

Quinn, a part-time worker who has been employed for seven years with his employer, earned gross wages of $16,000.00 in his vacation entitlement year. He is entitled to six per cent of $16,000 as vacation pay, i.e. $960.00.

Example 4: An employee reaches five-year employment threshold partway through a vacation entitlement year

Andrew has been employed for four years at the start of his current vacation entitlement year but reaches the five-year employment threshold partway through that year. He earned gross wages of $16,000.00 in this vacation entitlement year. He is entitled to six per cent of $16,000 as vacation pay, i.e. $960.00.

If an employee's contract or collective agreement provides a better vacation benefit than the minimum required, the employee may be entitled to a higher percentage of their gross earnings for vacation pay. For example, an employee might be entitled under their contract to four weeks' vacation, with eight per cent of gross earnings for vacation pay.

The gross wages on which vacation pay is calculated include:

  • regular earnings, including commissions;
  • bonuses and gifts that are non-discretionary or are related to hours of work;
  • overtime pay;
  • public holiday pay;
  • termination pay;
  • allowances for room and board; and
  • domestic or sexual violence leave pay.

But do not include:

  • vacation pay paid out or earned but not yet paid;
  • tips and gratuities;
  • discretionary bonuses and gifts that are not related to hours of work, production or efficiency (e.g. a Christmas bonus unrelated to performance);
  • expenses and traveling allowances;
  • living allowances;
  • contributions made by an employer to a benefit plan and payments from a benefit plan (e.g. sick pay) that an employee is entitled to;
  • federal employment insurance benefits;
  • severance pay.

When to pay vacation pay

In most cases, the vacation pay earned during a completed vacation entitlement year or stub period must be paid to an employee in a lump sum sometime before they take the vacation time earned. There are four exceptions:

  1. When the vacation time is being taken in periods of less than one week.
    • In this case, the employee must be paid vacation pay on or before the pay day for the period in which the vacation falls.
    • For example, Alvaro is taking vacation from January 2 to January 8 inclusive, and the normal pay day that covers this period is January 30. Alvaro must be given his vacation pay on or before January 30.
  2. When the employee has agreed electronically or in writing that their vacation pay will be paid on each pay cheque as it accrues (accumulates).
    • In this case, the employee's wage statement may show clearly the amount of the vacation pay being paid. This amount must also be shown separately from any other amounts paid.
    • Alternatively, the employer must issue a separate statement for the vacation pay being paid.

      Note: An employee whose period of employment is less than five years and who is paid accrued vacation pay on each pay day is entitled to four per cent of the wages earned in each pay period as vacation pay. When the employee reaches the five-year employment threshold, the employee's entitlement increases to six per cent vacation pay on all wages earned in the vacation entitlement period. As a result, the employee is entitled to an additional two per cent of the wages earned in the vacation entitlement period up to the date the five-year threshold was reached. The employee is also entitled to six per cent vacation pay on the wages earned from that date on.

      Example: Payment of vacation pay on a pay period by pay period basis

      • Fraser's vacation entitlement year is January 1 to December 31.
      • Fraser reached his five-year employment threshold on July 1.
      • Fraser was paid four per cent vacation pay each pay day on the wages earned between January 1 and June 30.
      • On July 1, when Fraser reached his five-year employment threshold, his vacation pay for that vacation entitlement year increased from four to six per cent of all the wages earned in that vacation year.
      • Fraser's employer must "top-up" the four per cent vacation pay on the wages he earned between January 1 and June 30 with an additional two perc ent vacation pay. This additional vacation pay is due on the pay day for the pay period in which July 1 falls.
      • Fraser will then be paid six per cent vacation pay each pay day on the wages earned from July 1 to December 31.
  3. If the employee agrees electronically or in writing, the employer can pay the vacation pay at any time agreed to by the employee.
  4. If the employer pays the employee their wages by direct deposit into an account at a financial institution.
    • In this case, the employee must be paid vacation pay on or before the pay day for the period in which the vacation falls.

When employment ends

When employment ends (for example, where an employee quits or the employment is terminated), an employee is entitled to vacation pay that they have earned and that has not yet been paid. In some cases, this would include vacation pay earned during a previous vacation entitlement year or stub period as well as the vacation pay earned during a current one.

An employee whose employment is terminated during a vacation entitlement period and before the five-year employment threshold will be entitled on termination to vacation pay of four per cent of the wages earned during that last (partially completed) vacation entitlement period (plus any outstanding vacation pay earned in previously completed vacation entitlement periods).

An employee who reached five years with the employer prior to being terminated, and before or during the last (partially completed) vacation entitlement period, would be entitled to six per cent of all the wages earned in that (partially completed) vacation entitlement year (plus any outstanding vacation pay earned in previously completed vacation entitlement periods).

Vacation pay is payable on termination pay but not on severance pay.

The unpaid vacation pay must be paid within seven days of the employment ending or on what would have been the employee's next pay day, whichever is later.

Example 1 – The employee's period of employment is less than five years on termination of employment

Jenna was hired on April 1, 2017, and had a standard vacation entitlement year. On March 31, 2018, she had earned two weeks of vacation time and four per cent of the wages earned in the vacation entitlement year as vacation pay. Her employer scheduled her vacation for the two-week period beginning June 1, 2018, and her vacation pay was to be paid prior to the commencement of that vacation. However, Jenna quit her employment on May 15, 2018. When she quit, her employer was required to pay her the vacation pay earned in the vacation entitlement year April 1, 2017, to March 31, 2018, plus the vacation pay earned in her last (incomplete) vacation entitlement year (being four per cent of the wages she earned between April 1, 2018, and May 15, 2018).

Note: The vacation pay must be paid within seven days of the date Jenna quit or by what would have been Jenna's next pay day, whichever is later.

Example 2 – The employee's period of employment is five years or more on termination of employment

Dini was hired on June 1, 2013, and had an alternative vacation entitlement year that ran from January 1 to December 31 each year. He reached his five-year employment threshold on May 31, 2018. His employment was terminated on August 1, 2018. He had no vacation pay outstanding for any previously completed vacation entitlement years. Dini's vacation pay for his last partially completed vacation entitlement year is six per cent of the wages earned between January 1, 2018 and August 1, 2018, because he had reached the five-year employment threshold prior to the termination.

Note: The vacation pay must be paid within seven days of the date Dini's employment was terminated or by what would have been Dini's next pay day, whichever is later.

Vacation and public holidays

A public holiday could fall during an employee's vacation period. In that case, the day remains a vacation day for the employee, and if the employee qualifies for the public holiday, the employee is entitled to one of the following:

  • the employee can have a substitute day off work with public holiday pay. This must be taken within three months of the public holiday or, if the employee agrees electronically or in writing, within 12 months of the public holiday;
    or
  • the employer can pay public holiday pay for that day without giving the employee a substitute day off work, if the employee agrees electronically or in writing.

Employees may also agree electronically or in writing to work on a public holiday that falls while they are on vacation.

Vacation and leaves of absence

Because there is no break in the employment relationship during a period of pregnancy, parental, sick, family responsibility, bereavement, declared emergency, family caregiver, family medical, critical illness, domestic or sexual violence, organ donor, reservist, child death or crime-related child disappearance leave, the time on leave counts toward the completion of a vacation entitlement year or stub period. For example, an employee on leave for all or only part of a vacation entitlement year would have earned a full two weeks of vacation time at the end of the vacation entitlement year. The vacation pay earned during that vacation entitlement year would be a minimum of four per cent or six per cent (depending on the employee's length of employment) of any wages actually earned during the year.

Where an employee's contract provides that "paid vacation" is earned through active service (e.g., 1.5 paid vacation days for each month of service or three weeks paid vacation for each year of service) an employee on leave may not earn either vacation time and/or pay while on leave. However, at the end of the vacation entitlement year or stub period, the employer must ensure the employee receives the greater of what was in fact earned under the contract and the minimum vacation time and vacation pay, they would have earned under the ESA.

Example: when a contract of employment provides a greater right to vacation based on active service

Ingrid's contract of employment provides that she earns two paid vacation days for every month of active service. In other words, vacation time and vacation pay are earned together through active service. Ingrid is on a pregnancy/ parental leave for six months of her vacation entitlement year.

Although Ingrid's length of service continues to accrue while she is on pregnancy and parental leave, she is not credited with "active" service while on leave.

Ingrid's period of employment at the end of the vacation entitlement year in which she took her leave is three years. At the end of that vacation entitlement year, her employer determines that she has earned 12 paid vacation days under her contract of employment. Because she regularly works five days a week, she has earned enough vacation time under her contract to exceed the two-week minimum required under the ESA for an employee whose period of employment is less than five years. In addition, the employer is able to show that 12 days of regular wages exceeds four per cent of the wages she had actually earned during the vacation entitlement year.

Example: Employee must receive at least minimum vacation entitlements under the ESA

Tony's contract provides that he earns three weeks of paid vacation for every year of active service. He is on a parental leave for eight months of his vacation entitlement year. At the end of that vacation entitlement year, his period of employment is four years. Under his contract of employment Tony earned 1/3 of the three weeks of paid vacation he would otherwise earn in a year. In other words, he earned one week of paid vacation for the vacation entitlement year. However, his employer must ensure that Tony receives at least the minimum ESA vacation entitlements of two weeks of vacation time and four per cent vacation pay for an employee whose period of employment is less than five years. The employer will therefore have to provide Tony with another week of vacation time and ensure the week of vacation pay earned under the contract is not less than four per cent of the gross wages he had actually earned in the vacation entitlement year.

An employee who is on a pregnancy, parental, sick, family responsibility, bereavement, declared emergency, family caregiver, family medical, critical illness, organ donor, reservist, domestic or sexual violence, child death or crime-related child disappearance leave has the right to defer taking her or his vacation entitlement until the leave of absence expires (or until some later date if the employer and employee agree). This is the case even if the employee's contract of employment states that the employee is not allowed to defer taking vacation or restricts an employee's ability to do so.

This means that an employee who is on a leave of absence under the ESA will not lose any vacation time or vacation pay because they are on a leave. It also ensures that an employee does not have to choose between taking less than their full leave entitlement and losing some or all of their vacation pay or vacation time.

An employee who has the right to defer vacation until the expiry of a leave of absence may forego their right to take vacation time, with the agreement of the employer and the approval of the Director of Employment Standards, Ministry of Labour, Immigration, Training and Skills Development. However, an employee cannot forego their right to be paid vacation pay.

Requesting statements of vacation records

Employers are required to keep records:

  • of the vacation time earned since the date of hire but not taken before the start of the vacation entitlement year
  • the vacation time earned and vacation time taken (if any) during the vacation entitlement year (or stub period)
  • the balance of vacation time remaining at the end of the vacation entitlement year (or stub period).

The employer must also keep records of the vacation pay earned and paid to the employee during the vacation entitlement year (and stub period, if any) and how the amount was calculated.

These records must be made no later than seven days after the start of the next vacation entitlement year (or first vacation entitlement year if the records relate to a stub period) or the first pay day after the stub period or vacation entitlement year ends, whichever is later.

Employees may request (in writing) a statement containing the information in the employer's vacation records. The employer is required to provide the information no later than:

  • seven days after the request,
    or
  • the first pay day after the employee makes the request,

whichever is later, but subject to the following:

If the employee asks for information concerning the current vacation entitlement year or stub period, the employer is required to provide the information no later than:

  • seven days after the start of the next vacation entitlement year (or first vacation entitlement year in the case of a stub period),
    or
  • the first pay day after the stub period or vacation entitlement year ends,

whichever is later.

The employer is required to provide the information with respect to each vacation entitlement year or stub period only once.

If the employee has agreed that vacation pay will be paid on each pay cheque as it is earned, the employer does not need to keep records and provide statements about vacation pay as discussed above. Instead, the employer must report the vacation pay that is being paid separately from the amount of other wages on each wage statement, or provide a separate statement setting out the vacation pay that is being paid. The employer must also keep a record of that information.

Vacation entitlement year

The 12-month period over which employees earn vacation.

Standard vacation entitlement year

A recurring 12-month period beginning on the date of hire.

Alternative vacation entitlement year

A recurring 12-month period chosen by the employer to begin on a date other than the employee's date of hire (e.g. employee hired June 1 but employer establishes alternative vacation entitlement year commencing January 1).

Stub period

Period between the date of hire and beginning of the first alternative vacation entitlement year or, the period between the end of a standard vacation entitlement year and the beginning of an alternative vacation entitlement year where the employer switches from a standard vacation entitlement year to an alternative vacation entitlement year (e.g. If an employer has chosen an alternative vacation entitlement year that runs January 1 to December 31 and the employee is hired on September 1, the stub period will be September 1 to December 31).

Vacation entitlement year and stub period will include time the employee spends away from work because of:

  • layoff
  • sickness or injury
  • pregnancy, parental, sick, family responsibility, bereavement, declared emergency, family caregiver, family medical, critical illness, organ donor, reservist, domestic or sexual violence, child death, or crime-related child disappearance leaves
  • any other approved leaves (i.e. where there is no break in the employment relationship).
Transitional rules

The increased entitlements to vacation time and vacation pay (three weeks' vacation time and six per cent vacation pay) for employees with five or more years of employment only apply to vacation entitlement years or stub periods that end on or after December 31, 2017. Employers are not required to provide the increased entitlements if the vacation entitlement year or stub period ended before December 31, 2017.