How Much Paid Vacation In Canada

Byadmintouriangle

A new survey commissioned by the Society of Human Resource Management (SHRM) shows that the average amount of paid vacation time in Canada has declined since 2013. The data gathered by Leger, a polling and market research firm, also shows that many non-unionized employees are not getting their full allotment of paid holidays and sick days.

According to a 2016 report by the Organisation for Economic Co-operation and Development(OECD), Canadians get less paid vacation time than any other member country, bar Japan. While we live in a country of extremes, it’s not hard to imagine that Canadians are torn. Our work culture demands a lot and we don’t always have enough hours in the day. But is more paid vacation time the answer?

People in Canada get a lot of paid vacation. Canadians, on average, get about 30 vacation days per year. Brits get about 24! Unfortunately, Americans don’t even come close, with an average of 16 paid vacation days per year. Meanwhile, France and Germany, who have a reputation for being workaholics, still manage to give their workers 20 days off! If you think you’re going to be working like Ken and Barbie, think again. In Canada, most workers get at least 10 vacations days a year according to the Workplace Safety and Insurance Board.

How Much Paid Vacation In Canada

One of the benefits reserved for employees in Canada is that of annual vacation. Canadian employers are required to offer their employees paid vacations. This lumps them into a category of “employees” that can only be revoked if the employer decides upon it. Similarly, there are some rights that an employee in Canada gets upon switching companies or getting their first job.

Annual vacation

As a federally regulated employee, you are entitled to the following:

  • at least 2 weeks of vacation annually once you have completed 1 year of continuous employment with the same employer
  • at least 3 weeks of vacation annually after 5 consecutive years of working for the same employer, and
  • at least 4 weeks of vacation annually after 10 consecutive years of working for the same employer

Defining year of employment

A “year of employment” means continuous employment for the same employer for a period of:

  • 12 consecutive months beginning with the date that your employer hired you, or
  • 12 consecutive months beginning on any anniversary of the date your employer hired you or
  • a calendar year or another period of 12 consecutive months that your employer determines in accordance with the Canada Labour Standards Regulations

Defining the “year of employment” is important because you must complete it before you are entitled to take a vacation. The wages you earn during your “year of employment” are used to determine the amount of vacation pay you will receive.

Timing of annual vacation

Generally, you may take vacation at a time that:

  • you have mutually agreed upon with your employer, or
  • your employer sets

However, your vacation must begin no later than 10 months after you have completed each “year of employment”. When your employer chooses your vacation period, they must give you at least 2 weeks’ notice of when that vacation time will begin.

Annual vacation pay

Your employer may pay you vacation pay within 14 days before your vacation is set to begin. If this is not practical or it is the established practice in your workplace, your employer may also pay it during or immediately following your vacation.

Calculating annual vacation pay

Your vacation pay is calculated as a percentage of the gross wages that you earn during your “year of employment”. When your vacation is:

  • 2 weeks; vacation pay is 4% of earnings
  • 3 weeks; vacation pay is 6% of earnings, and
  • 4 weeks; vacation pay is 8% of earnings

A vacation pay calculator is available to assist in determining vacation entitlements.

Defining wages

For the purpose of vacation, “wages” include every form of payment for work performed. However, it does not include tips and other gratuities. The vacation pay – IPG-012 explains this definition in more detail.

Waiving, postponing or splitting annual vacation

As an employee, you may:

You may do this as long as you have a written agreement with your employer to do so.

You and your employer may agree to split your vacation. In this case, your employer must pay you the prorated portion applicable to each time you take a portion of your vacation.

Postponing or interrupting annual vacation to take another leave

An employee may postpone or interrupt their vacation in order to take one of the following leaves:

Annual vacation pay during a leave of absence

When you are on leave with pay, your:

  • employment status does not change, and
  • benefits accumulate as if you were at work

In addition, you continue to earn vacation pay and time during the leave period.

When you are on leave without pay, your:

  • seniority continues to accumulate, and
  • employer will calculate vacation pay only on your wages earned during the “year of employment”

The leave of absence does not change the date on which you become eligible for:

  • additional weeks of vacation, and
  • an increase in vacation pay

End of employment entitlement

Your employer must “pay out” any vacation pay owed to you for any prior completed “year of employment”. Your employer must do this within 30 days after the day on which your employment ended. In addition, you are entitled to vacation pay for the partially completed current year of employment.

General holidays

In the Canada Labour Code, a general holiday is a specific day on which employees, including managers and professionals, are entitled to a day off with pay. As a federally regulated employee, you are entitled to 10 paid general holidays every year:

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