How long is annual leave in Canada?

Annual leave, commonly referred to as vacation time in Canada, varies by jurisdiction and is subject to statutory requirements. Employers may offer vacation time exceeding the statutory minimum, and many customers choose to provide an unlimited paid time off option. Below is a summary of the statutory minimum vacation times by jurisdiction within Canada:

• Federal:
• 2 weeks after 1 year
• 3 weeks after 5 years
• 4 weeks after 10 years

• British Columbia and Alberta:
• 2 weeks after 1 year
• 3 weeks after 5 years

• Saskatchewan:
• 3 weeks after 1 year
• 4 weeks after 10 years

• Manitoba and Ontario:
• 2 weeks after 1 year (12 months in Ontario)
• 3 weeks after 5 years

• Quebec:
• 1 day per month, not exceeding 2 weeks, for less than 1 year
• 2 uninterrupted weeks for 1-3 years
• 3 uninterrupted weeks for over 3 years

• New Brunswick:
• 1 day per month worked or 2 weeks per year for less than 8 years
• 1 1/4 days per month worked, or 3 weeks per year, after 8 years

• Prince Edward Island:
• 2 weeks for less than 8 years
• 3 weeks for 8 or more years

• Nova Scotia:
• 2 weeks after 12 months
• 3 weeks after 8 years

• Newfoundland and Labrador:
• 2 weeks for less than 15 years
• 3 weeks for 15 or more years

• Yukon, Northwest Territories, and Nunavut:
• 2 weeks after 1 year
• 3 weeks after 6 years in Northwest Territories and Nunavut

Employers cannot provide less than the statutory minimum vacation time as required by law.

How is annual leave accrued in Canada?

In Canada, annual leave is accrued on a pro-rated basis for each part-year worked. Employees are entitled to a minimum amount of annual leave, which varies depending on the province of residence, or they may receive more leave as outlined in the employment agreements we provide.

The employment agreements offer a range of vacation policies, including:

• The statutory minimum amount of leave
• Unlimited paid time off (PTO)
• A negotiated number of annual vacation days

Vacation pay is accrued each pay period, with minimum accrual rates defined by provincial employment legislation. Employers have the discretion to provide higher rates of vacation pay accrual and additional vacation time as stipulated in the employment agreement. Our current templates offer the minimum vacation pay accrual as per the provincial regulations.

What is the carry-over policy for annual leave in Canada?

In Canada, the carry-over policy for annual leave allows for any leave above the statutory minimum to be carried over until March 31 of the following year. Unused leave beyond this date is forfeited. This carry-over policy is uniformly enforced across all provinces through our employment agreement templates. However, statutory minimum vacation time carries forward according to the specific requirements of each province.

How is paid time off (PTO) calculated in Canada?

In Canada, "paid time off" (PTO) is an informal term that is not recognized in Canadian legislation. Instead, Canadian law refers to "vacation pay" or "vacation lump sum."

Vacation Pay:

Vacation pay is calculated by the following method:

• Calculate the daily rate: annual salary divided by 260
• Multiply the daily rate by the number of vacation days requested

Vacation Lump Sum:

Vacation lump sum is calculated as follows:

• Determine the vacation rate (as defined by an employment agreement or legislation, whichever is higher)
• Multiply the vacation rate by the vacationable earnings (this may vary by province)
• Subtract the vacation pay already received from this amount

Example Calculation:

For an employee with the following details:

• Vacationable earnings: CAD 40,000
• Received vacation pay: CAD 1,000
• Vacation rate: 6%
• 15-day vacation entitlement

The vacation lump sum calculation is:

• Vacationable earnings x vacation rate - vacation pay already received
• (CAD 40,000 x 6%) - CAD 1,000 = CAD 1,400

What is the process to request annual leave in Canada?

Employees in Canada who are eligible for the annual leave policy can request time off by following the process outlined in the employment agreement template.

• Employees can submit a time-off request through our Global Work Platform™ so that their PTO manager can approve it.
• Bi-weekly employees should submit their time-off requests through Dayforce, which is the designated time tracking system.

Is unlimited PTO an option in Canada, and how can it be accommodated?

Unlimited Paid Time Off (PTO) is an option in Canada and the language to support this is included in Velocity Global Canada's templates for all provincial full-time indefinite employment agreements. It can be accommodated while maintaining compliance with provincial labor laws in the following ways:

• The supported employee continues to accrue vacation time and pay at the minimum statutory rate as mandated by their province.
• The supported employee is encouraged to take time off that exceeds the statutory vacation amounts.
• There is no carry-over provision in the case of unlimited PTO, meaning unused vacation time beyond the statutory minimum amounts does not carry over to the next year.
• Any unused vacation pay will not be paid at the end of the year (unless specified in the employment agreement) and will only be reconciled at the end of the employment relationship.

These terms ensure that the flexibility of unlimited PTO is offered while adhering to statutory requirements.