UPDATE: On October 23, 2018, the Ontario government announced that it would reverse many of the changes implemented through Bill 148. However, the new rules around vacation pay are unchanged and will remain in effect.
Employees that have been with you for five years or less are entitled to two weeks vacation payable at 4%. As of January 1, 2018, employees that have been with you five years or more are entitled to three weeks vacation payable at 6% of their gross wages.
The following is a Q & A on vacation with pay after five years:
1. When an employee has an alternative vacation entitlement year running from January 1 to December 31 and their fifth anniversary falls, for example on June 1st how is vacation paid?:
If an employee’s vacation entitlement year runs from January 1st 2018 to December 31st, 2018 and their fifth anniversary falls on June 1st, on June 1st, the anniversary date, you would start paying 6% vacation pay and you would pay the employee an additional 2% vacation pay retroactive to January 1st, 2018. The employee would then be entitled to three weeks vacation as of June 1st, 2018.
2. When an employee has a standard vacation entitlement year of June 1st, 2018 to May 31st 2019 how is vacation paid?:
If an employee’s vacation entitlement year runs from June 1st to May 31st of the following year and their fifth anniversary falls on June 1st, 2018, you would start paying 6% vacation pay on June 1st and they would pay the employee an additional 2% vacation pay retroactive to June 1st, 2017. The employee would then be entitled to three weeks vacation as of June 1st, 2018.
For more information on vacation, please see the Employment Standards Website.
You have the right to schedule when vacations are taken.
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