Vacation Entitlement and Vacation Pay in Ontario
Ontario employees earn at least two weeks of vacation and 4 percent vacation pay, rising to three weeks and 6 percent after five years. Here is how your entitlement works.
Key takeaways
- Most employees earn at least two weeks of vacation after each 12 months of work.
- That rises to three weeks once you have five or more years with the employer.
- Vacation pay is at least 4 percent of your wages, or 6 percent at five-plus years.
- Vacation time and vacation pay are separate entitlements that work together.
- Unused vacation pay must be paid out when your job ends.
In this article
Vacation is one of the ESA rights people are least sure about: how much time you get, how the pay is calculated, and what happens to unused vacation. The rules are actually straightforward once you separate the two pieces, the time off and the pay, so here is how vacation works in Ontario.
✅Quick answer. Under the ESA, most Ontario employees are entitled to at least two weeks of vacation time after each 12-month period, increasing to three weeks after five years with the same employer. Separately, you earn vacation pay of at least 4 percent of your wages, rising to 6 percent once you reach five years. When your job ends, any vacation pay you have accrued but not been paid must be paid out.
How much vacation time do you get?
At least two weeks after you complete each 12-month vacation entitlement year, and at least three weeks once you have five or more years of employment with the same employer. This is a minimum; your contract can offer more, but it cannot offer less. Employers generally get to schedule when vacation is taken, but they cannot deny you the time you have earned.
How is vacation pay calculated?
Vacation pay is a percentage of the wages you earned during the entitlement year: at least 4 percent for employees with less than five years, and at least 6 percent once you reach five years. It is calculated on your wages, which includes most earnings. Vacation pay is a separate entitlement from your vacation time, though for many employees they are paid together when they take their time off.
Vacation time vs. vacation pay
It helps to think of these as two linked but distinct things. Vacation time is the job-protected time off you are entitled to take. Vacation pay is the money that goes with it, the percentage of your earnings. Employers sometimes pay vacation pay on each paycheque rather than in a lump sum at vacation time, which is allowed in certain circumstances, but you still keep the right to the time off.
What happens to vacation when your job ends?
Any vacation pay you have earned but not yet received must be paid out when your employment ends, whether you quit or are let go. Employers cannot keep accrued vacation pay as a penalty. For the details of what is owed on your way out, see vacation pay when you quit. And remember that on a dismissal, vacation pay is separate from, and on top of, your severance.
What should you do if your vacation is shorted?
- 1.Check your pay records to confirm you are receiving at least 4 percent (or 6 percent at five-plus years) vacation pay.
- 2.Confirm you are getting at least two weeks of vacation time, or three at five-plus years.
- 3.Raise any shortfall with your employer; some vacation errors are payroll mistakes.
- 4.If it is not fixed, unpaid vacation is an ESA violation you can pursue.
Vacation sits alongside the other ESA minimums like public holiday pay and job-protected leaves. As always, the ESA is the floor; your full entitlements when a job ends, especially severance, are usually much larger.
Frequently asked questions
How much vacation are you entitled to in Ontario?
At least two weeks after each 12-month period, rising to three weeks after five years with the same employer. Your contract can give more but not less than these ESA minimums.
How much is vacation pay in Ontario?
At least 4 percent of your wages, increasing to at least 6 percent once you have five or more years with the employer. Vacation pay is separate from your vacation time.
Do I get paid out for unused vacation when I leave?
Yes. Any vacation pay you have earned but not received must be paid out when your job ends, whether you quit or are dismissed. Employers cannot withhold it as a penalty.
Is vacation pay part of my severance?
No, it is separate. Accrued vacation pay is owed on top of your severance when you are dismissed, not counted as part of it.
Daniel Carter
Legal Writer, Mirza Law
Daniel Carter is a legal writer at Mirza Law in Toronto. He writes about layoffs, employment contracts, and the steps to take before you sign anything from your employer.
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