Vacation Time in Ontario: Employee Rights

What is vacation time in Ontario?

Vacation time in Ontario is the period employees can take off work each year for vacation. Employees build up, or “accrue,” this time off as they work over the course of the year.

Even if a worker chooses not to take this time off, employers must still give them vacation pay. This rule makes sure that all workers get paid extra for their hard work throughout the year.

Vacation time is covered by Ontario’s Employment Standards Act (ESA).

LEARN MORE

What is the difference between vacation time and vacation pay?

Vacation time and vacation pay are related but distinct concepts:

• Vacation Time: Employees earn vacation time with each hour worked. It is the time off that employees are entitled to take, and it accumulates over time based on the length of their employment and the hours they’ve worked.
• Vacation Pay: Vacation pay is the amount of money employees in Ontario receive while they are on vacation, and it’s a percentage of the wages earned by the employee during the “vacation entitlement year.”

Back To Top

How much vacation time do you get in Ontario?

In Ontario, minimum vacation time for non-unionized employees is calculated based on the amount of time spent working for the same employer:

Example: Ali’s Vacation Time in Ontario

Ali starts working for the company on January 1, 2014.

• First year (2014): Ali earns vacation time but cannot take it yet. He is accumulating vacation time during his first year.
• After 12 Months (January 1, 2015): Ali has now completed 12 months of employment and is entitled to 2 weeks of vacation. he can start taking his 2 weeks of annual vacation from this point onwards.
• After 5 Years (January 1, 2019): Ali has completed 5 years of employment. Starting from this date, he is entitled to 3 weeks of annual vacation.

Note: If Ali takes a job-protected leave, such as parental leave, or the business he works for is sold, his length of employment continues uninterrupted for the purpose of calculating his vacation time.

Alternative Vacation Entitlement Year

Some employers may establish an alternative start date for calculating vacation time, different from the hire date. In such cases, employees are entitled to a pro-rated amount of vacation time for the stretch before this alternative start date, known as the “stub period.”

Back To Top

Can you negotiate with your employer for more vacation time?

Yes, employees can negotiate for more vacation time with their employers. While there are minimum vacation time requirements set by law, employers and employees can agree to terms that are more favorable than the minimum legal requirements.

An agreement on the number of vacation days you are entitled to each year may be included in your employment contract.

Back To Top

When can I use vacation time in Ontario?

Employees can use vacation time after it has been earned, usually after completing a 12-month vacation entitlement year. The specific timing for taking vacation can be mutually agreed upon by the employer and employee, considering business operations and employee preferences.

Back To Top

Can employees in Ontario choose when to take vacation?

While employees are entitled to vacation time, they can’t decide when to take this vacation. That decision lies with the employer, who has the authority to schedule vacations based on business needs, although they must provide staff with advance notice of vacation options.

However, many employers are open to discussing vacation timing and may accommodate employees’ requests if possible.

Back To Top

Can my employer refuse my vacation request?

Yes, your employer can refuse your vacation request. Employers in Ontario have the absolute right to decide when their employees can use their vacation days, considering business needs. For example, many companies have a policy not to allow vacations during the Holiday season.

While an employer can refuse a vacation request, they must ensure that the employee can take their vacation time within ten months after completing the 12-month vacation entitlement year.

How to get your preferred time off

Your safest bet to make sure you get your preferred time off is to do the following:

• Follow your employer’s procedures around requesting vacation time
• Give your employer as much advance notice as possible of your intention to take a vacation
• Wait for your employer to approve your vacation before you start making plans.

Back To Top

Can my employer cancel my vacation time if I have already made plans?

No. Once you have made substantial plans based on approved vacation time, your employer can’t force you to cancel it. Employers are expected to act reasonably and in good faith. Although there may be circumstances where your employer requests the cancellation of your already planned vacation, they must do so reasonably and fairly, ensuring not to disrupt your plans without significant reason.

When your vacation has been approved and you have made arrangements based on that approval—such as booking flights or hotels—employers are generally expected to honor their commitment.

Back To Top

Can my employer force me to use vacation days to cover work absences?

Yes, in Ontario, your employer can make you use vacation days instead of unpaid days to cover your time off work, as per the ESA.

If your employer does force you to take vacation time, it must be in one, two, or three-week blocks, unless you agree to use the time in smaller blocks.

Employees can choose to use vacation days, sick days, or banked (unused) overtime instead of taking time off without pay.

Back To Top

Can I carry over vacation time in Ontario?

Yes, generally speaking you can carry over vacation time in Ontario and save it for use in the future.

However there are some factors that must be considered:

• ESA Regulations: According to the ESA, employees are required to take their vacation time within 10 months after the vacation entitlement year in which it was earned. Generally, vacation time under the ESA mandate cannot be carried over.
• Extra Vacation Time: Any additional vacation time beyond what is mandated by the ESA may be subject to carry-over based on the employer’s policies and the terms within the employee’s contract.
• Employer Discretion: Employers have the discretion to offer more generous vacation time and may allow carry-over of this extra time beyond the statutory minimum, depending on their vacation policies.
• ‘Use It or Lose It’ Policies: Some employers in Ontario have policies requiring employees to use their vacation time within a certain period, or else they forfeit the unused time. It is essential to review individual employment contracts and employer policies to understand the specifics of vacation time carry-over.

Back To Top

Can my employer ask me to work while on vacation?

No, your employer should not ask you to work during your vacation. Vacation time is legally designated for rest, and being asked to work could infringe upon your rights to undisturbed time off.

Work during your vacation should be an exception, reserved for emergencies or situations you’ve agreed to be available for crucial matters. Vacations are meant for recharging, free from work obligations.

For a smooth vacation experience, it’s vital for both employees and employers in Ontario to understand and respect the purpose of vacation time. A well-defined policy, ideally outlined in the employment contract, helps ensure vacation remains a true break from work.

Back To Top

Vacation time and termination in Ontario

When you are fired or lose your job in Ontario, your employer must compensate you for the vacation time you earned but hav not yet been paid out. This pay should be provided within seven days of termination or on what would have been your next payday.

SEE ALSO:
• Fired for taking vacation: Ontario employee rights

But that’s not all you may be owed. If you are fired “without cause” in Ontario (for any reason outside of serious misconduct) you are entitled to a full severance package. Severance in Ontario can be as much as 24 months’ pay, and is calculated using factors like your age, position and length of employment. A wrongful dismissal occurs when your employer doesn’t offer you the proper amount of severance pay, which happens often in Ontario.

A termination “for cause” means that you were let go for serious misconduct or insubordination, and your employer legally doesn’t have to provide you with a severance package. However, this type of termination is often incorrectly used by employers, meaning you may still be owed substantial compensation.

Lost your job?

When you are fired, laid off or let go from your job, it is crucial to consult an experienced employment lawyer at Samfiru Tumarkin LLP before accepting any severance offer. signing your termination papers prematurely may cause you to forfeit essential rights, including proper severance pay and vacation pay.

Employers often impose deadlines to pressure employees into accepting insufficient severance packages. However, your legal right to a complete severance package isn’t bound by these arbitrary deadlines. You have up to two years from the termination date to claim your full severance – as much as 24 months’ pay.

At Samfiru Tumarkin LLP, our skilled team of employment lawyers consistently deliver proven results for countless clients across Ontario. We work diligently to protect your rights and provide necessary guidance through employment-related issues.

If you are a non-unionized employee in Ontario (or Alberta and B.C.) facing job loss or workplace challenges, contact us or call 1-855-821-5900 to get the advice you need, and the compensation you deserve.