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For employees who have worked for the same company for five years, vacation pay is three weeks.

In Ontario, there are specific employment guidelines regarding vacation leave that give employees the right to time off with pay. Though some job categories are exempt, most employers must follow the Employment Standards Act (ESA) when it comes to providing paid time off.

It's important to understand that vacation time and pay are not the same as holiday pay and entitlement.

Beginning on January 1, 2018, vacation time and pay are divided into two categories based on the number of years an employee has worked for the same employer. The following are the key differences in minimum vacation time and pay:

Employees with less than five years of service earn two weeks of vacation time after each 12-month vacation entitlement year, based on four percent of their gross wages (excluding any vacation pay) earned during the 12-month vacation entitlement year or stub period (if any).

Employees who have worked for five years or more are entitled to three weeks of vacation time, which is calculated as 6% of their gross wages earned during the 12-month entitlement year or stub period (if any).

Other than the ESA-mandated minimum standards, you can provide more rights and benefits to your employees as an employer. It cannot, however, be less than the amounts listed above.

10 Facts About Vacation Pay for Ontario Business Owners In addition to the minimum standards for vacation leave, here are ten things to be aware of: A vacation entitlement year is a recurring 12-month period that can be counted from the employee's hire date or from the beginning of the calendar year. If the latter, you must allot a pro-rated amount of vacation time for the period between your employee's start date and the start date of your calendar year; this is known as a "stub period." If an employee does not complete a full vacation entitlement year or stub period, you are not required to provide vacation time. Employees, on the other hand, earn vacation pay in addition to their wages. During a leave of absence, vacation time is accrued. , such as Parental or Maternity Leave since there is no break in the employment relationship.

After completing a vacation entitlement year or stub period, your employees must take vacation within ten months. You have the right, as an employer, to schedule vacation and ensure that your employees take the time off before the ten-month period expires. Employers must schedule vacation time in two or three-week increments, or in two or three one-week increments, depending on the number of years of service. Your employee may request shorter periods of time off (i.e. one day), and the agreement can be made in writing or electronically. In most cases, earned vacation pay must be paid in full before your employee takes a vacation. There are a few exceptions to this rule.

Your employee may not use all or part of their vacation time; however, as an employer, you must still pay them their earned vacation pay. In this case, you will need to obtain electronic or written consent, as well as approval from the Director of Employment Standards. When an employee's employment is terminated, you must pay them their earned vacation pay. This must be done within seven days of the termination or on the following payday. If an employee requests (in writing) a record of their vacation pay, you must provide the statement within a week of the request or by the next payday. If you still have questions about how to calculate vacation pay, please contact us. what to do about vacation leave for seasonal employees, it's always a good idea to get help from an HR Expert.