Difference Between Vacation Time And Vacation Pay

Difference Between Vacation Time And Vacation Pay

All workers in Canada, including managers and part-time workers, are entitled to paid vacation time. However, the amount of vacation time an employee receives and the amount of vacation pay they receive are two distinct issues. The distinctions between vacation pay and vacation time are outlined below.

Vacation time

Every employee in Canada, with the exception of those who are specifically exempt, must take two weeks off annually, or three if you live in Saskatchewan. This vacation entitlement year can be a calendar year, the employee’s anniversary, or a date the company chooses. Vacations must be taken between four and twelve months after they are earned, depending on the province or territory.
The division of vacation time is subject to regulations in some jurisdictions. Employees may be allowed to take vacation in two consecutive weeks or in one-day increments, or they may be given vacation for a single period of two weeks.
A person is entitled to an additional day of vacation if their vacation time falls on a statutory holiday. They might, however, agree to take that additional day later.
Despite the fact that most workplaces permit employees to choose their vacation dates, employers have every right to determine when employees take vacations, subject to reasonable notice. Employees must take their required two weeks of vacation, and employers must make sure they do.
When an employee is fired, their employer cannot require them to use any vacation time they have accrued. In a similar vein, employees cannot be paid instead of forfeiting the unless they are fired.

Vacation Pay

Employers are required to include a certain amount for vacation pay in addition to the regular earnings. This is calculated as a percentage of vocational earnings, typically four percent or higher.

Every province and territory has its own unique definition of vocational earnings, and not all employee compensation is considered vocational. Because Saskatchewan does not calculate vacation pay as a percentage of earnings but rather as a fraction of earnings, the province differs slightly from other jurisdictions.
When employees take a vacation, they typically receive their vacation pay. However, in some parts of Canada, employees may instead receive their vacation pay on the date of their work anniversary or on each paycheque.




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