V
acation is a great time for employ-
ees to unwind and recharge, and it
is legally mandated in all Canadian
provinces and territories. How-
ever, ensuring vacation time and
pay compliance is not as simple as
it seems, and it can be quite the
headache for human resources pro-
fessionals to understand, calculate and administer.
Employers often forget that, subject to contractual
limits, they can force employees to use their statutory
vacation time by a certain point; in fact, they are man-
Sponsored by
dated to make employees use
their vacation time within
a timeframe prescribed by
provincial legislation. In
Ontario, employers must
make employees use their
vacation time within ten
months after it is accrued,
and in British Columbia the
employee has twelve months.
However, company policy can
stipulate that it be used ear-
lier. Employees often ask for
payout in lieu of vacation, but
this is generally not acceptable
under provincial legislation.
Most provinces mandate
that employees be allowed to
use vacation time in blocks
of at least one week, if not
more. Cutting vacation time
into small one- or two-day
chunks is usually not allowed
unless it is at the request of
the employee.
Generally speaking, vaca-
tion pay must be paid in
advance of the employee tak-
ing vacation time. Employers
sometimes forget that though
this arrangement can be
altered in some provinces, it
must be done with the writ-
ten consent of the employee.
In provinces like Quebec,
vacation pay must be paid
out in advance, and paying a
percentage of wages on every
pay cheque technically con-
stitutes a violation of employ-
ment standards.
Most importantly, vacation
laws vary from province to
province. Therefore, a blan-
ket trans-provincial vacation
policy may work in Ontario,
for example, but might vio-
late the statutes of Quebec
or Alberta. It is important to
check with each province's
legislation and consult with
an employment lawyer to
ensure that your vacation
policy is compliant.
Taking the Time:
A Primer on Vacation
Time and Pay
