# Vacation Pay



## DayTek (Sep 26, 2013)

So I am starting a new job within a separate division of my company. Currently, I am a permanent, part-time, salaried employee. Any vacation time I get is paid for with my regular working wages and stat holidays are paid of course as well.

This new job is listed as "contract, part-time". There's really no "contract" as it is technically permanent with a regular schedule. I'll be starting on an hourly wage for the first time in like 8 years...LOL. From what I understand, my move will be a transfer, meaning my benefits and tenure with the bank will be carried over. What I am unsure of is vacation pay. I spoke to another hourly employee that works there and she said that she gets 4% vacation pay with her pay. We didn't have a lot of time to chat, so I wasn't sure what that meant. I also didn't ask about stat holidays and if they are paid.

If I understand correctly, any vacation time I take (I am entitled to 3 weeks now) will not actually be paid during my vacation. But rather, I will get an extra 4% tacked on top of my gross pay every pay cheque? If that is the case, I will have to be diligent in saving that portion of pay so my budget is not in trouble the weeks I take off.

If you guys know how this works, any info would be most appreciated.

Thanks!


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## Eclectic12 (Oct 20, 2010)

That's the way it worked when I was a student working summers ... if I wanted vacation (which I didn't as I was making money to pay for school :chuncky, the vacation pay would have to cover it.

Or another way of putting it, there's no income during the vacation time taken off.


Cheers


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## Westerly (Dec 26, 2010)

That's right, only 3 weeks is 6% (not sure if its federal, but minimum here in BC is two weeks, 4%.)


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## PrairieGal (Apr 2, 2011)

Where I work, the part time staff have the choice of accruing their vacation pay, or getting it paid on every cheque.


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## OhGreatGuru (May 24, 2009)

First of all, you should be asking your employer these questions for any definitive answers.

In general, when people refer to "4% vacation pay", it usually refers to 4% pay in lieu of any paid vacation. For short-term employees like summer students it is often paid out at the end of term. In your case you would have to ask your employer if it is paid out on every pay period; monthly; quarterly; or annually. But from your inquiry to another employee it sounds like it is every pay period.

Your post raise all kinds of other questions you need to ask:
- Do you get paid for stat holidays?
- Are you entitled to unpaid vacation leave, and how much? This is not usually an issue for short-term employees, but if you expect to be employed all year round, you might want some time off once in a while.
- What exactly is the meaning of your designation as "contract, part-time?" If the company is continuing your benefits, it seems to me their only advantage is that they can probably reduce your hours or terminate you at any time with minimal notice and severance. But you should clarify this so you know where you stand.


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## RBull (Jan 20, 2013)

Check for sure with your employer. 

I have a similar arrangement with my former full time employer and am now PT with them the last 2+ years, as I phase down before retiring soon. Technically they consider this a temp PT position. In reality I do the exact same job just with fewer hours, however I produce the same sales volumes. Vacation pay as PT is 4%. Stat holidays are not paid and all full time tenure is lost. Vacation, if available is on my dime. Moving to PT removed all other paid benefits as well, such as DC pension contributions and medical/dental.


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## Eclectic12 (Oct 20, 2010)

OhGreatGuru said:


> First of all, you should be asking your employer these questions for any definitive answers.
> In general, when people refer to "4% vacation pay", it usually refers to 4% pay in lieu of any paid vacation.


+1 ...



OhGreatGuru said:


> For short-term employees like summer students it is often paid out at the end of term...


Interesting ... the companies I worked for didn't want to have lump sum payments at the end so they had a "vacation pay" line item that was paid out on each pay cheque. 

Just like now that I'm full time with paid vacation - there's pressure to make sure that all or just about all vacation is used each year, unless there is an exceptional project that management makes an exception for.


Cheers


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## DayTek (Sep 26, 2013)

Thanks for all the responses. 

I did send an e-mail to my new manager last week with such inquires and haven't got a response back - They are super busy, hence the need for my assistance...haha.
I might shoot them another e-mail today. I don't start until middle of February, but would like things squared away before hand.


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## newtothegame (Jan 2, 2014)

I have worked for employers that have banked the 4% until vacation time, and I have also worked for employers that have paid out that 4% with every cheque. That equals two weeks wages in one year. Now, to me it doesn't matter when they pay it. Actually, I am better off receiving my 4% now rather than next year!

Three weeks vacation entitlement would be 6%. In some Provinces, three week vacations are mandated after a certain length of employment (five years in BC). Ontario labour code has no such provision, I believe. Anything over and above two weeks would be solely at your employers discretion.

And with Stat Holidays? Now, I had to Google this one, since I live in BC. It seems your labour regs are similar as to what we _once_ had many years ago here... If you work your scheduled shift before, and then after, the Stat, you are entitled to stat pay. No and's, if's, or but's about it. BC does this differently now. Here, if you work 15 out of the last 30 days prior to a stat, you get stat pay.

Of course, these are the minimum labour code rules. Your employer may go above and beyond, but he may not...


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## lonewolf (Jun 12, 2012)

Vacation pay makes no cents, Why pay for work that is not done ?


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## DayTek (Sep 26, 2013)

I signed a contract with my new workplace yesterday. It is a year contract. They will pay me statutory holidays and add 4% vacation to each pay. I am entitled to take 3 weeks, but will not be compensated technically for the 3rd week. Very bizarre, but that is how contract work goes I guess. It's a year contract and it pays well, plus I'll get the Admin experience. I'll just have to save the extra money to make up my vacation days/weeks.


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## Westerly (Dec 26, 2010)

I'm glad you're happy with the employment situation, just take your total gross pay including vacation and back out 6%. That's what your earning with 3 weeks / year holidays. I'm hearing more and more of employers including vacation on paycheques and yes the saving is up to the employee. I know someone paid that way but the spouse gets 4 weeks with pay. It's the same thing, only they can have a hard time justifying / managing the vacation when the time comes.


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## RBull (Jan 20, 2013)

^I don't think that is the case. What he seems to be saying is he/she gets 4% paid out each pay and then can take 3 weeks vacation. The third week is essentially a week off without pay. If he/she were entitled to 3 weeks the payout on each cheque would be 6%.


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## Westerly (Dec 26, 2010)

I agree. The extra week is basically a nothing, although nice to have the choice.


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## Westerly (Dec 26, 2010)

The friend I mention up-thread likes to tell me how much he makes. He tells me he makes $106,000 / year. This is true if he works 52 weeks, but if he takes his holidays he makes $100,000. I mention the 6% above as the OP had 3 weeks before going on contract. I wonder if this is a growing trend with employers and what the reasons are.


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## Eclectic12 (Oct 20, 2010)

Westerly said:


> ... I wonder if this is a growing trend with employers and what the reasons are.


I don't know if it's a trend ... but as a student, I wanted to work as much as possible. 

From an employer's perspective, I'm thinking it's easier and cheaper as where there's too much work, an experienced worker might choose to forgo the vacation versus the worker who might lose paid vacation. 

Then too, if the employer allows the paid vacation to be carried too far forward - the vacation might be earned at $20K and then paid out at $50K - which would be more expensive.


Cheers


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## edarte (Jan 28, 2014)

I do a lot of work with Canadian vacation pay (VP) and it, like most things today, it can get complicated.

First VP is heavily regulated. A company can’t choose to pay it or not. There is legislation in each province (different rules if you work for a federal corp like a bank, railway, etc.) that determines this. The company can decide when they pay it (every week/once a year, etc) and how they pay it (paid time off/cash) and if they want to pay you more than the rules require.
For example, in Alberta, after one year of employment, an employee is entitled to 4% of their "vacationable earnings" and after 5 years they are entitled to 6%. In Ontario, after a year 4% and no other increase after that. In Nova Scotia, 1 year/4% , 8 years/6%.

Now "vacationable earnings" differ from province to province too. In Ontario, you are entitled to vacation pay on overtime but not in Alberta.
When it is paid affects things too. If you are paid vacation pay every pay you don’t earn vacation pay on it. But if it is only paid to you once a year then you are entitled to vacation pay on it too (Yes, VP on VP), if you are in Alberta but not in Ontario. (See I said it was complicated)

The above are only examples and you should contact your own provincial labor office to learn what you are entitled to. From my experience large corps try to meet the legislation at least and usually do better. However mistakes can happen so if you have doubts you would be wise to check it out. Plus the above applies to employee situations – not sure what the rules are, if any, for contract work.


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