Vacation
The BC Employment Standards Act and the Canada Labour Code require that employers provide workers a minimum amount of vacation pay and vacation time.
What is outlined in the legislation is the minimum vacation time and vacation pay. Often, employers will offer paid or unpaid vacation over and above the minimum standards. These types of arrangements can, and should, be outlined in a written employment agreement.
Paying vacation pay and providing time off for vacation are two separate obligations, but they work together. Keep reading, and we’ll explain how this works.
Provincially Regulated Employees
Employees employed with the same employer for more than one year are entitled to two weeks of annual vacation. An employee’s vacation pay is at least 4% of their wages.
After five years of consecutive employment with the same employer, an employee is entitled to three weeks of annual vacation and vacation pay increases to 6%.
Provincially regulated employees start earning their vacation pay after five calendar days of employment. This amount must be paid to the employee at least seven days prior to their vacation. Or, with the employee’s advance written consent (which can be in a written employment agreement), with every pay cheque.
Determining when an employee is entitled to take vacation can be a little confusing. Once an employee has worked for one full year, they have earned the right to take time off for vacation. The employer must allow that time off within 12 months of the employee earning it.
Employees cannot skip taking vacation time and just receive vacation pay. The BC Employment Standards Act simply does not allow it.
Federally Regulated Employees
Employees employed with the same employer for more than one year are entitled to two weeks of annual vacation. An employee’s vacation pay is at least 4% of their wages.
After five years of consecutive employment with the same employer, an employee is entitled to three weeks of annual vacation and vacation pay increases to 6%.
After 10 consecutive years with the same employer, an employee is entitled to four weeks of annual vacation and vacation pay increases to 8%.
Federally regulated employees must take their vacation, at the very latest 10 months after completing one year of work. They must receive their vacation pay at least 14 days before taking vacation, during their vacation or immediately after their vacation.
It is possible to postpone or waive vacation for federally regulated employees if both the employee and employer agree in writing. If vacation is postponed or waived by written agreement, the employer must still pay the employee their vacation pay.