Understanding Vacation Entitlements In Ontario

Understanding vacation entitlements under the Employment Standards Act, 2000 can be confusing for employers.

Vacation pay and vacation time are two separate issues in Ontario. Most employees are entitled to vacation pay, which must be at least four per cent of the employee's gross wages earned in the 12-month vacation entitlement year, whether or not they take the vacation time. Employees cannot give up their entitlement to vacation pay.

Vacation pay must generally be paid to the employee in a lump sum before the vacation begins; on each pay day, if agreed to in writing by the employee; on or before the pay day for which the vacation falls; or at a time agreed to in writing by the employee.