Do You Get Paid Out Vacation Pay When You Quit in Ontario?
Quitting does not mean you forfeit your unused vacation. In Ontario your employer must pay out your accrued vacation pay when your job ends, however it ends.
Key takeaways
- Yes. Your employer must pay out your accrued, unused vacation pay when your job ends, whether you quit or are let go.
- Vacation pay is 4% of your wages (or 6% after five years of service), and it accrues as you earn.
- It must be paid within seven days of your last day or on your next regular pay day, whichever is later.
- You do not forfeit vacation pay by resigning. "Quit and you lose it" is a myth.
- This is separate from any severance you may be owed if you were pushed out rather than choosing to leave.
In this article
A lot of people assume that if they quit, they walk away from any vacation they had banked. In Ontario that is not how it works. Vacation pay you have already earned is your money, and the law requires it to be paid out when your employment ends, no matter how it ends.
✅Quick answer. Under Ontario's Employment Standards Act, your employer must pay out your accrued but unused vacation pay when your employment ends, whether you quit, are fired, or are laid off. Vacation pay is 4% of your wages, rising to 6% after five years of service. You do not lose it by resigning.
Do you get vacation pay if you quit in Ontario?
Yes. Vacation pay accrues as you work, and it belongs to you once earned. When you resign, your employer must pay out whatever accrued vacation pay you have not yet taken. The same applies if you are fired or laid off. Quitting does not erase money you have already earned.
How much vacation pay are you owed?
Under the ESA, vacation pay is a minimum of 4% of your gross wages, which corresponds to two weeks of vacation a year. After five years with the same employer, it rises to 6%, corresponding to three weeks. Your contract may provide more, but it cannot provide less than these minimums.
| Length of service | Minimum vacation pay |
|---|---|
| Less than 5 years | 4% of wages (2 weeks) |
| 5 years or more | 6% of wages (3 weeks) |
When does it have to be paid?
Your final pay, including accrued vacation pay, must generally be paid within seven days of your last day of employment, or on what would have been your next regular pay day, whichever is later. If your employer holds it back, that is an ESA violation you can pursue.
What if your employer will not pay it out?
Keep your pay stubs and any record of vacation taken so you can show what you accrued. You can file a claim with the Ministry of Labour for unpaid vacation pay. And if your departure was not really voluntary, for example you were forced to resign or pushed out, you may be owed much more than vacation pay. A free review can tell you where you stand.
Frequently asked questions
Do I lose my vacation pay if I quit in Ontario?
No. Your employer must pay out your accrued, unused vacation pay when your employment ends, including when you resign. You do not forfeit earned vacation pay by quitting.
How much vacation pay am I owed?
At least 4% of your gross wages, rising to 6% after five years of service. Your contract can offer more but not less than these ESA minimums.
When does my employer have to pay out my vacation pay?
Generally within seven days of your last day, or on your next regular pay day, whichever is later. Holding it back is an ESA violation.
What if my employer refuses to pay my vacation pay?
Keep your records and file a claim with the Ministry of Labour for unpaid vacation pay. If your job ended in a way that was not truly voluntary, you may also be owed severance.
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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