Vacations, we all love them, but they can be a technically tricky part of employment law.
Hilary Page
Five facts about your vacation rights in Ontario
Employment Standards Act. 2000 Vacation entitlements are a valued part of employment, but navigating the rules around vacation can be complex. Understanding these regulations is essential for both employees and employers to ensure compliance and fairness under Ontario’s Employment Standards Act, 2000 (ESA).
1. Minimum Vacation Entitlements
Under Ontario’s ESA, employees are entitled to a minimum of:
- Two weeks per year if their length of service is less than five years.
- Three weeks per year if their length of service exceeds five years.
Employers can provide more vacation than the ESA requires but never less. Importantly, periods of leave—such as parental leave—still count toward an employee’s length of service for vacation entitlement purposes.
2. Employers’ Right to Schedule Vacations
Employers have the authority to decide when their employees take vacation. For example, if an employer needs to close for renovations, they can require employees to use their vacation time during that period. By default, vacation must be taken in periods of at least one week, unless the employee requests otherwise and the employer consents.
3. Vacation Pay and Earnings
Vacation pay must be earned on all wages, including base pay and bonuses: as defined by the ESA (s.1(1)). This means:
- 4% vacation pay for employees with less than five years of service.
- 6% vacation pay for employees with more than five years of service.
Employers sometimes overlook applying vacation pay to bonus amounts, which can lead to compliance issues.
4. Vacation Time vs. Vacation Pay
Employees earn vacation time and vacation pay separately. For example, during an unpaid leave, employees still accumulate vacation time based on their service, even if no pay is received.
This can result in additional unpaid vacation time that employees are entitled to after their return.
5. Carrying Over Vacation Time
In Ontario, vacation time can only be carried over for up to ten months into the following year.
Ensuring employees use their entitled vacation within this period helps maintain compliance and maintains the employee’s employment rights.
Conclusion: Understanding vacation entitlements is vital for both employees and employers under Ontario’s ESA.
By ensuring compliance and clear communication, you can avoid potential legal issues and create a workplace that respects employee rights.
If you have questions about vacation entitlements or need guidance on employment law compliance, contact Greenwood Law for expert advice.
