What is the minimum vacation pay in Canada?
Most provinces require a minimum of 4% of gross wages (equivalent to two weeks of vacation) for employees with under five years of service. After five years, many jurisdictions including Ontario and BC increase this to 6% (three weeks). Saskatchewan starts higher at three weeks, and Quebec moves to 6% after three years.
Is vacation pay owed on termination?
Yes. Accrued but unpaid vacation pay is a wage entitlement that must be paid out when your employment ends, regardless of the reason for termination. Employers cannot forfeit earned vacation pay. It should appear on your final pay statement along with any termination or severance pay.
Is vacation pay calculated on overtime and bonuses?
In most provinces, vacation pay is calculated on total wages, which typically includes overtime pay, commissions, and non-discretionary bonuses, but excludes certain items like expense reimbursements. The exact definition of wages varies by province, so check your provincial employment standards legislation.
Can my employer refuse to let me take vacation?
Employers can schedule when vacation is taken and may require you to take it within a set period after it is earned, but they cannot deny you the statutory minimum vacation time and pay. If you never take the time, the accrued vacation pay must still be paid out. Use-it-or-lose-it policies that eliminate earned vacation pay are generally not permitted.