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Annual vacation

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Last updated: February 22, 2022

Employees earn vacation time during the first

year they're employed. After 12 months, they
get 2 weeks of annual vacation. After 5 years,
they get 3 weeks of annual vacation. Taking a
leave under the Act or the sale of a business
does not affect an employee's length of
employment.

On this page:

Vacation time
Vacation pay
When employment ends
Agreements can be enforced
What you can do

Vacation time
Employees must take time off for annual
vacation and receive vacation pay. Vacation
must be taken within 12 months of being
earned. Employees cannot skip taking vacation
time and just receive vacation pay.

Annual vacation is scheduled in periods of 1

week or more unless the employee asks for a
shorter amount of time. Employers can
schedule vacation time according to business
needs as long as employees are able to take
their vacation days within 12 months of earning
them. Employers may:

Cancel employee vacations due to a

shortage of employees
Require employees to take vacation if there
isn't enough work for staff

If a statutory holiday falls on an employee's

scheduled vacation day, the employee may
qualify for statutory holiday pay. They do not
get an additional day off.

Taking vacation days in

advance
Employees can ask to take vacation days before
earning them. If an employer allows this, it does
not affect an employee’s vacation entitlement
later on, unless the employer clearly explains
that at the time. The employer must require the
employee to submit their request in writing.

If the employer allows the employee to take

vacation days in advance, the employer can
deduct the number of vacation days they took
in advance from their vacation entitlement once
they have actually earned it.

Example: An employee starts work in

March 2019. They email their supervisor to
ask for April 1st, 2nd and 3rd off. Their
supervisor approves the request and the
employee takes the time off. In March
2020, the employee can then take the rest
of their vacation time – the 2 weeks
earned during 2019 minus 3 days used
before they were earned. They must use
their vacation time before March 2021.

Vacation pay
Vacation pay is at least 4 percent of all wages
paid in the previous year. After the employee
completes 5 years of employment, the
employer must pay vacation pay of at least 6
percent of all wages earned in the previous
year.

Vacation pay must be paid at least 7 days before

an employee starts their annual vacation time.
If the employee and employer agree in writing,
it can be paid out on every pay cheque instead.
Any vacation pay received by an employee
becomes part of the total wages paid in that
year.

Total wages include:

Regular wages, salary and commissions

Statutory holiday pay
Paid sick days required by Employment
Standards
Previously paid vacation pay

Commissions
Commission salespeople take annual vacation
and receive vacation pay the same as other
employees. Vacation pay is paid on all
commissions earned – it is not incorporated into
the commission rate. Commissions paid during
an employee’s annual vacation are not vacation
pay.

Example: An employee completes their

first year of work at a new job on February
28, 2021. They take two weeks off in July.
Before they go on vacation, their employer
pays the employee the vacation pay they
earned over the previous year – four
percent of their gross earnings from
March 1, 2020 to February 28, 2021. The
vacation pay is added to their gross wages
for 2021. The employee receives their
vacation pay instead of their regular
wages for the two weeks they are on
vacation.

Farm workers
Farm workers who get paid a piece rate have
vacation pay included in their piece rates.

When employment ends

When employment ends, employees must be
paid all remaining vacation pay. All vacation pay
that is owed to an employee must be paid on
their last pay cheque. If an employee works for
less than a year, they need to be paid 4 percent
annual vacation pay.

Employees who are employed for 5 calendar

days or less are not entitled to be paid annual
vacation pay.

Agreements can be
enforced
Agreements to give more vacation days or
vacation pay can be enforced. Employers must
uphold any agreements they make, even if they
are greater than the minimum requirements for
annual vacation pay or time off.

What you can do

If you're having issues at work, find out what
you can do:

Use Solution Explorer

Contact Employment Standards
Submit a complaint

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References from the Employment

Standards Act and Regulation

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