Vacation Policies in Canada:
A Provincial and Territorial Overview
Each Canadian province and territory has its own specific regulations regarding employee vacation policies.
It’s essential to understand these local rules to ensure your business complies with the law and that your employees receive the correct benefits.
For up-to-date information on vacation requirements, please refer to your province or territory’s official employment standards website.
Alberta:
In Alberta, employees are entitled to vacation time and pay after completing one year of service. The minimum vacation entitlement depends on the length of employment:
- 1 to 4 years: 2 weeks of vacation (4% of wages).
- 5 years or more: 3 weeks of vacation (6% of wages).
Employers must ensure employees take their earned vacation within 12 months of earning it. While vacations are typically granted in one unbroken period, employees can request to split it into shorter increments, even half-days, if agreed upon by the employer.
Unused vacation pay is carried forward and paid out upon termination. For detailed information, visit the Alberta Employment Standards - Vacations and Vacation Pay.
Saskatchewan:
Employees in Saskatchewan are entitled to a minimum of:
- 3 weeks of vacation after completing each year of employment.
- 4 weeks of vacation after completing 10 years with the same employer.
Vacation pay is provided to all eligible employees, including part-time, casual, and seasonal workers, ensuring they are compensated during time off. Vacation pay can be requested before taking leave or paid on the normal payday during a vacation. If unused, it must be paid within 11 months of entitlement.
In the case of termination, unpaid vacation pay must be provided within 14 days. Furthermore, if a business changes ownership, employees retain their service duration with the previous employer for vacation entitlement purposes.
For more details, visit the Saskatchewan Government’s Vacation and Vacation Pay page.
Manitoba:
In Manitoba, employees are entitled to:
- 2 weeks of vacation per year during the first four years of employment, earning 4% of gross wages as vacation pay.
- 3 weeks of vacation after completing five consecutive years with the same employer, earning 6% of gross wages as vacation pay.
Employees begin earning vacation time from their first day of work and must take their earned vacation within 10 months of entitlement. Employers and employees can agree on vacation dates, but if no agreement is reached, the employer sets the vacation period with at least 15 days’ notice.
If a general holiday falls during a vacation, employees are entitled to an additional vacation day and general holiday wages. Employers may pay vacation pay on every paycheck or before vacation leave begins. For seasonal employees, years of service are cumulative if they return to the same employer each season.
For more details, visit the Manitoba Employment Standards - Vacations and Vacation Pay.
Ontario:
In Ontario, employees are entitled to:
- 2 weeks of vacation after completing 12 months of employment, earning 4% of gross wages as vacation pay.
- 3 weeks of vacation after 5 years of employment, earning 6% of gross wages as vacation pay.
Employers may set a standard 12-month vacation entitlement year starting on the hire date or establish an alternative vacation year with a prorated "stub period." Vacation must be taken within 10 months after it is earned, and employers can schedule it if an agreement with the employee isn’t reached.
If a public holiday falls during a vacation, employees are entitled to an extra vacation day or public holiday pay. Vacation pay can be paid in a lump sum before leave, on every paycheck, or at the employee's request.
For detailed information, visit the Ontario Government’s Guide to the Employment Standards Act
Quebec:
In Quebec, annual vacation entitlements are determined by uninterrupted service at the end of a 12-month reference year (typically May 1 to April 30):
- Less than 1 year of service: 1 day per full month worked, up to a maximum of 2 weeks, with 4% of gross wages as vacation pay.
- 1 to less than 3 years of service: 2 consecutive weeks, with 4% of gross wages as vacation pay.
- 3 years or more of service: 3 consecutive weeks, with 6% of gross wages as vacation pay.
Vacation must be taken within 12 months of the reference year unless deferred due to valid reasons like illness or parental leave. Employers select the vacation period and must provide at least 4 weeks’ notice of the vacation dates. Vacation pay is typically issued in a lump sum before the start of leave.
For industries like tourism or agriculture, employers may add vacation pay to each paycheck. Workers can request early or divided vacations, but dividing vacation into more than two periods requires employer approval.
For more details, visit the CNESST Vacation Guidelines.
Nova Scotia:
In Nova Scotia, employees are entitled to vacation time and pay as follows:
- Vacation Time:
- Employees earn 2 weeks of vacation after each 12 months of work, to be taken within 10 months following the earning period.
- Starting in their ninth year of service (after completing 8 years), employees are entitled to 3 weeks of vacation.
- Employers determine vacation schedules and must notify employees at least 1 week in advance of the vacation start date.
- Vacation Pay:
- Employees earn 4% of gross wages as vacation pay during the first 7 years of employment.
- This increases to 6% of gross wages starting in the eighth year of employment.
- Vacation pay can be paid in a lump sum before vacation begins, added to regular paychecks, or included in the hourly rate (as long as it’s clearly communicated and documented).
Seasonal workers who return to the same employer yearly are eligible for the same benefits if they maintain continuous service without breaks longer than 12 months.
For more information, visit the Nova Scotia Labour Standards - Vacation Time and Vacation Pay.
Prince Edward Island:
In Prince Edward Island (PEI), vacation entitlements and pay are governed by the Employment Standards Act, with distinctions based on the length of continuous service:
- Less than 8 years of employment:
- Employees are entitled to 2 weeks of vacation after 12 months of work, to be taken within the next 4 months (or as agreed upon by the employer and employee).
- Vacation pay is at least 4% of gross wages, paid at least 1 day before the vacation begins.
- 8 years or more of employment:
- Employees are entitled to 3 weeks of vacation annually, with vacation pay increased to 6% of gross wages.
Employers must notify employees of their vacation schedule at least 1 week in advance. Part-time employees working less than 90% of normal hours may opt for vacation pay instead of vacation time. Seasonal workers may receive vacation pay included in their hourly wage if clearly documented and communicated.
When employment ends, employees must be paid all accrued vacation pay with their final paycheck.
For more details, refer to the PEI Employment Standards Guide.
New Brunswick:
In New Brunswick, annual vacation entitlements and pay are based on years of service:
- Less than 8 years of service:
- Vacation entitlement: 1 day per month worked or 2 weeks per year, whichever is less.
- Vacation pay: 4% of gross wages.
- 8 years or more of service:
- Vacation entitlement: 1.25 days per month worked or 3 weeks per year, whichever is less.
- Vacation pay: 6% of gross wages.
Vacation pay must be paid at least 1 day before vacation begins, and employees are eligible to take vacation after completing 1 year of service. If no agreement is reached on scheduling, the employer may decide the vacation period but must provide at least 1 week’s notice.
If an employee is terminated or resigns before taking their vacation, all outstanding vacation pay must be included in the final paycheck.
For further details, visit the New Brunswick Employment Standards Guide.
Newfoundland and Labrador:
Eligibility: Employees qualify for annual vacation after 12 months of continuous employment, provided they worked at least 90% of the available hours.
- Vacation Time:
- Less than 15 years of service: 2 weeks of vacation annually.
- 15 or more years of service: 3 weeks of vacation annually.
- Vacation Pay:
- Less than 15 years of service: 4% of gross wages.
- 15 or more years of service: 6% of gross wages.
- Vacation pay must be paid at least 1 day before vacation begins or within 1 week of termination.
- Vacation pay can also be included in each pay period if clearly indicated.
For further details, visit the Employment standarts in Newfoundland and Labrador
Nunavut Labour Standards:
- Length of Employment:
- 1 to 5 years of service: Employees are entitled to 2 weeks of annual vacation.
- 6 or more years of service: Employees are entitled to 3 weeks of annual vacation.
- Vacation Scheduling:
- Employers must provide the vacation pay at least one day before the start of the vacation or at an earlier prescribed time.
Vacation Pay:
- Calculation:
- 1 to 5 years of service: Vacation pay is 4% of the total gross wages earned.
- 6 or more years of service: Vacation pay increases to 6% of the total gross wages earned.
- Vacation Pay upon Termination:
- When an employee quits, is laid off, or is terminated, they are entitled to receive any accumulated vacation pay not yet paid, regardless of the length of employment.
Key Points:
- All employees are entitled to vacation pay regardless of how long they were employed with the employer.
- Vacation pay must be calculated based on total gross wages.
This information is a guide only. Refer to the Nunavut Labour Standards Act for full details.
Northwest Territories:
- Standard Hours: 8 hours/day and 40 hours/week.
- Overtime:
- Paid at 1.5 times the regular rate for hours over 8/day or 40/week.
- Extended Hours or Overtime Averaging Orders may apply with conditions.
- Maximum Hours: 10 hours/day or 60 hours/week unless under special conditions.
Vacation and Vacation Pay:
- Entitlements:
- 2 weeks paid vacation per year for the first 5 years (4% vacation pay).
- 3 weeks paid vacation starting in the 6th year (6% vacation pay).
- Termination: Vacation pay owed must be paid if employment ends.
For detailed rules and specific scenarios, refer to the Employment Standards Act.
Yukon:
Eligibility
- Entitlement: All employees are entitled to vacation pay and vacation time, except members of the employer's family.
- Start Date: Vacation pay begins accruing after 14 days of continuous employment.
- Vacation Time: Employees are entitled to two weeks of vacation time for every completed year of employment.
Vacation Pay
- Rate: At least 4% of gross wages.
- Timing:
- Vacation pay must be paid no later than one day before vacation begins.
- If the employment ends, earned vacation pay must be paid within seven days of termination.
- Vacation Pay on Termination:
- If the employee's employment ends before completing a full year, the employer must pay all earned vacation pay within 7 days of termination.
Refer to the Employment Standards Act for full details.
British Columbia
Vacation Time
- Eligibility:
- Employees earn vacation time from their first day of employment.
- After 1 year: 2 weeks of vacation.
- After 5 years: 3 weeks of vacation.
- Usage:
- Vacation must be taken within 12 months of earning it.
- Vacation is scheduled in periods of 1 week or more unless the employee requests a shorter duration.
- Employers can schedule vacations to align with business needs but must ensure employees take their vacation within 12 months.
- Statutory Holidays: If a statutory holiday falls during vacation, employees receive statutory holiday pay but no additional day off.
Vacation Pay
- Rate:
- First 5 years: 4% of gross wages.
- After 5 years: 6% of gross wages.
- Payment Timing:
- Must be paid at least 7 days before vacation starts, unless the employee and employer agree in writing to include vacation pay in regular pay cheques.
- Wage Components:
- Includes regular wages, salary, commissions, statutory holiday pay, paid sick days, and previously paid vacation pay.
For more details or assistance Visit the Employment Standards website or contact their office.
