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Providing paid vacation for your employees in Newfoundland and Labrador

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The Newfoundland and Labrador Employment Standards Act regulates that employees are required to take time off for annual vacation and to be paid vacation time. After being employed for 12 months, an employee becomes entitled to receive an annual vacation. 

Who is eligible for vacation pay?

Any employee who has been employed for 5 calendar days or more is eligible. 

What are the employer’s responsibilities revolving around the annual vacation entitlement?

An employer must:

  • give an employee an annual vacation of
    • At least 2 weeks after 12 consecutive months of employment, or
    • At least 3 weeks after 15 years with the same employer.
  •  ensure an employee takes an annual vacation within 10 months after completing the year of employment entitling the employee to the vacation.
  •  allow an employee who is entitled to an annual vacation to take it in periods of one or more weeks.
  •  pay the employee vacation:
    • at least one day before the employee goes on vacation, or
    • each pay period as long as the employee is advised and the amount of vacation pay is indicated in the employer’s payroll, or
    • within one week of termination. 

How is vacation pay calculated?

An eligible employee is entitled to:

  • 4% of gross wages, including commissions and overtime, during the year of employment entitling the employee to the vacation pay if the employee has been employed for longer than 5 days, or
  • 6% of gross wages, including commissions and overtime, during the year of employment entitling the employee to the vacation pay if the employee has been employed, by the same employer, for longer than 15 years. 

For more information please see the Labour Relations at Work booklet on the Government of Newfoundland and Labrador website.