Navigating Through Vacation Policies in Canada

Canada has built a reputation as one of the most open and welcoming developed Western nations, with foreign-born people making up nearly 25% of the population. While the country is similar to the United States, with each province and territory having unique local laws, Canada is generally known to be more appealing to workers for their labor rights.

One essential aspect of employment policies you should know if you intend to work in Canada is vacation policies. An employee is entitled to some paid vacation days per year, typically determined by the duration of their employment. This article goes into the nitty gritty to help you be informed should you decide to work in the Great Blue North.

Canadian Vacation Policy Terms

Before diving into Canada’s different types of vacations and policies, you must first understand some terms. Here are the definitions of some essential terms.

1. Year of employment

A year of employment is continuous employment with the same employer for 12 consecutive months, either beginning on the hiring date or at a specified point in a calendar year. Many vacation policies use an employee’s number of years as a basis for benefits received.

2. Vacation time

Vacation time is the number of paid vacation days an employee is entitled to. An employee has at least two weeks of paid vacation days annually for the first five to eight years, then three weeks afterward, depending on the province. However, employees can only use their rightfully earned paid leaves after at least one year.

3. Vacation pay

Vacation pay is the amount of money an employer pays their vacationing employee. Typically, employees begin earning their vacation pay as soon as they start working and can receive it within 14 days before a break, during the vacation, or immediately after its conclusion.

The amount is a portion of an employee’s gross wages and grows to depend on the vacation time they have earned, as shown in the table below.

4. Carry-over policies and accrual caps

Carry-over policies dictate whether employees can save unused vacation days and carry them over to the following year. Some employers allow employees to do so, while others have a “use it or lose it” policy. If unsure, it’s best to check your employment contract or employee handbook or ask the recruiter during onboarding.

Accrual caps are the maximum number of annual vacation days an employee can collect and carry. This cap varies significantly between companies, typically around three to six weeks. Once employees reach the accrual cap, they must use their vacation days before earning any more.

Other Leave Types and Interactions

According to Canadian federal law, you may postpone or interrupt your vacation to take one of the following leave; you also have the right to a leave refund.

• Maternity-related reassignment

If your pregnancy prohibits you from doing your job properly, your employer must modify your job description or reassign you to another position. The transition period may be paid or unpaid, depending on the situation.

• Maternity and parental leave

Pregnant mothers and their partners may take a paid leave of up to 17 weeks. However, vacation days may affect the employee’s eligibility for government benefits.

• Illness-related leave

You may take a leave when you become sick, whether or not due to work-related reasons or if a close family member becomes ill, and you must take care of them. If you are on vacation when this happens, you may be entitled to change your leave type to a paid sick leave instead of a vacation leave, depending on the circumstances.

• General holiday

Canada has ten paid public holidays yearly, and if your employer-set vacation period lands on one of them, they must give you an extra vacation day to compensate.

• Others

Other protected leave types, such as bereavement, jury duty, and personal leaves, can interrupt your vacation time. In this case, Canadian federal law may obligate employers to return your interrupted or postponed vacation days.

General Canadian Vacation Tips

Here is some advice and information for those looking to maximize their leaves that should apply to most provinces.

1. Vacation limits

Employees must take their vacation no more than ten months after completing an employment year, and they can split the period, pause it, postpone it, or decline it. In most cases, they need to have written permission from their employer to do so.

Keep these regulations in mind so you don’t accidentally waste a vacation day.

2. Cash convertible

Employers must pay employees for unused vacation days, even if they were to resign or be terminated. There is also a system for automatically converting excess leaves, which applies to most employees. If you would rather have compensation over the break, save as many vacation days as possible to convert. Just make sure to know your company’s policy.

3. Plan ahead

It is always a good idea to plan your vacation days if you have control over when you use them. A great tip to maximize your time off work is to schedule your vacations around long weekends or holidays. Remember to inform your employer when you have a set date so they have time to make arrangements.

4. Check the local laws

While most of these tips and information apply on a federal level, your province may have unique regulations that can change how you use your vacation days. In British Columbia, for example, an employee is not eligible to receive vacation pay if they terminate their contract within five days of the hiring. 

Mastering Vacation Policies in Canada

Canada can be the country where you establish a career and life. However, understanding your rights and privileges can help you enjoy your stay better without fearing being taken advantage of. 

Every employee has the right to relax and recover from their work. Knowing the intricacies of vacation policies in the country and your province can make the difference between burnout and success.