The Canadian Labour Board offers provisions and standards to allow all employees the proper amount of time of as vacation. The code covers specific Canadian industries and categories of employees as well as information regarding the amount of annual salary an employee should be provided.
A Brief Overview on Canadian Labour Standards and Annual Vacations
- How many weeks? The provision allows for all employees to receive 2 weeks of vacation time for ever completed year of employment. After 6 consecutive years of employment at with the same employer the vacation allotment rises to 3 weeks.
- How long must an employee work to qualify? The establishment of a year of employment is based on the date the employee is hired or the anniversary of that date and ending 12 months later. The employer may also use a calendar year to establish a year of employment as long as it is determined with in the parameters of the Labour Board. This year of work must be completed for an employee to qualify for vacation pay.
- How do you calculate vacation pay? Vacation pay is based on a percentage of the gross wages an employee earns during their year of employment. If the vacation is 2 weeks the pay is 4% of their earnings. When it increases to 3 weeks it is calculated at 6%. Wages are the hourly or annual earnings of the employee and do not count tips or other gratuities.
- When can employees take vacation? An employee is typically able to take vacation any time once the time has been approved by the employer. These dates should be mutually agreed upon. However, it cannot be later than 10 months after the completion of the year of employment. If the employer has chosen the timing of the vacation they must provide at least 2 weeks’ notice to the employee before the annual vacation begins. An employee can waive or postpone vacation and must provide a written agreement to their employer.
- Is a terminated employee entitled to vacation pay? If an employee is terminated before they have received vacation benefits their employer must pay out any vacation pay owed for any completed years of employment prior to their dismissal. The employee is also entitled to vacation pay for the partially completed current year.
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