Vacation pay (Canada)

Time and money as separate entitlements

Canadian statutes treat vacation time and vacation pay as linked but distinct: the time must be taken (employers can and should schedule it), and the pay is calculated as a percentage of wages earned, 4% for two weeks, 6% for three, which matters for anyone with variable earnings, commissions or overtime, whose vacation pay exceeds base salary continuation. Most provinces start at two weeks (Saskatchewan starts at three), with step-ups at service milestones that vary by jurisdiction; federal employees add a fourth week at ten years.

The liability that quietly compounds

Because vacation pay accrues on every dollar of wages, unpaid accruals are a real balance-sheet item, and the common failures are mechanical: not accruing on bonuses and commissions where the statute requires it, letting untaken vacation pile past carry-over limits, and misclassifying people as contractors, which converts every invoice into wages carrying 4-6% retroactive vacation pay. On termination, accrued vacation pay is payable in full, on top of notice entitlements.

Ten public holidays, give or take

Statutory holidays sit alongside vacation: federally regulated workers receive 10 general holidays, while provincial counts range roughly from six to eleven depending on the province. Multi-province rosters therefore run different holiday calendars simultaneously, and holiday pay formulas differ by jurisdiction too, one more reason "we'll just apply the Ontario rules nationally" is a recurring and expensive simplification.