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Canada Labour Code (R.S.C., 1985, c. L-2)

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Act current to 2020-01-16 and last amended on 2019-09-01. Previous Versions

PART IIIStandard Hours, Wages, Vacations and Holidays (continued)

DIVISION IVAnnual Vacations (continued)

Marginal note:Calculation of vacation pay

 An employee is entitled to vacation pay equal to:

  • (a) 4% of their wages during the year of employment in respect of which they are entitled to the vacation;

  • (b) 6% of their wages during the year of employment in respect of which they are entitled to the vacation, if they have completed at least five consecutive years of employment with the same employer; and

  • (c) 8% of their wages during the year of employment in respect of which they are entitled to the vacation, if they have completed at least 10 consecutive years of employment with the same employer.

  • 2018, c. 27, s. 454

Marginal note:Entitlement to vacation in one or more periods

 A vacation granted to an employee under this Division is to be taken only in one period or, if the employee makes a request in writing and the employer approves it in writing, in more than one period.

  • 2017, c. 33, s. 200

Marginal note:Granting vacation with pay

 The employer of an employee who under this Division has become entitled to a vacation with vacation pay

  • (a) shall grant to the employee the vacation to which the employee is entitled, which shall begin not later than ten months immediately following the completion of the year of employment for which the employee became entitled to the vacation; and

  • (b) shall, at any time that is prescribed by the regulations, pay to the employee

    • (i) if the vacation is taken in one period, the vacation pay to which the employee is entitled in respect of that vacation, or

    • (ii) if the vacation is taken in more than one period, for each period, the proportion of the vacation pay that the vacation taken is of the annual vacation to which the employee is entitled.

  • R.S., 1985, c. L-2, s. 185
  • 2017, c. 33, s. 201

Marginal note:Vacation pay

 Vacation pay shall for all purposes be deemed to be wages.

  • R.S., c. L-1, s. 42

Marginal note:General holiday during vacation

 Where one or more general holidays occur during a vacation granted to an employee pursuant to this Division, the vacation to which the employee is entitled under this Division may be extended by one day for each such holiday, and the employer shall pay to the employee in addition to the vacation pay the wages to which the employee is entitled for those general holidays.

  • R.S., c. L-1, s. 43
  • 1977-78, c. 27, s. 12

Marginal note:Interruption

  •  (1) An employee may interrupt a vacation granted to them under this Division in order to permit them to take a leave of absence under Division VII or VIII or section 247.5 or to be absent due to a reason referred to in subsection 239(1) or 239.1(1).

  • Marginal note:Application of section 209.1

    (2) If an employee interrupts a vacation to take leave under any of sections 205.1, 206, 206.1 and 206.3 to 206.9 and resumes the vacation immediately at the end of that leave, section 209.1 applies to them as if they did not resume the vacation before returning to work.

  • Marginal note:Application of subsection 239(7)

    (3) If an employee interrupts a vacation to be absent due to a reason referred to in subsection 239(1) and resumes the vacation immediately at the end of that leave, subsection 239(7) applies to them as if they did not resume the vacation before returning to work.

  • Marginal note:Application of subsections 239.1(3) and (4)

    (4) If an employee interrupts a vacation to be absent due to a reason referred to in subsection 239.1(1) and resumes the vacation immediately at the end of that leave, subsections 239.1(3) and (4) apply to them as if they did not resume the vacation before returning to work.

  • Marginal note:Application of sections 247.93 to 247.95

    (5) If an employee interrupts a vacation to take leave under section 247.5 and resumes the vacation immediately at the end of that leave, sections 247.93 to 247.95 apply to that employee as if they did not resume the vacation before returning to work.

  • Marginal note:Notice to employer — interruption of vacation

    (6) An employee who intends to interrupt their vacation shall provide the employer with written notice of the interruption before or as soon as possible after the interruption begins.

  • Marginal note:Notice to employer — resumption of vacation

    (7) An employee who interrupts their vacation and who intends to resume it immediately after the interruption ends shall provide the employer with written notice of the day on which they resume their vacation before or as soon as possible after that day.

  • 2017, c. 33, s. 202
  • 2018, c. 27, s. 455
  • 2018, c. 27, s. 533

Marginal note:Postponement

  •  (1) Despite paragraph 185(a) or any term or condition of employment, an employee may postpone their vacation until after the day on which a leave of absence taken under Division VII or VIII or section 247.5, or an absence due to a reason referred to in subsection 239(1) or 239.1(1), ends.

  • Marginal note:Notice to employer

    (2) An employee who intends to postpone their vacation shall, as soon as possible, provide the employer with prior written notice of the postponement.

  • 2017, c. 33, s. 202

Marginal note:Termination of employment during year

 When an employee ceases to be employed, the employer shall pay to the employee within 30 days after the day on which the employee ceases to be employed

  • (a) any vacation pay then owing by the employer to the employee under this Division in respect of any prior completed year of employment; and

  • (b) the applicable percentage, under section 184.01, of the wages of the employee during any part of the completed portion of their year of employment in respect of which vacation pay has not been paid to them.

  • R.S., 1985, c. L-2, s. 188
  • 2012, c. 31, s. 219
  • 2018, c. 27, s. 456

Marginal note:Transfer

  •  (1) Despite the lease or transfer of a work, undertaking or business, or any part of a work, undertaking or business, from one employer to another employer by sale, merger or otherwise, the employment of the employee, before and after the lease or transfer, who is employed in or in connection with the operation of that work, undertaking or business, is, for the purposes of this Division, deemed to be continuous with one employer if the work, undertaking or business

    • (a) is a federal work, undertaking or business; or

    • (b) becomes a federal work, undertaking or business due to the lease or transfer.

  • Marginal note:Retendering

    (1.1) If, due to a contract being awarded through a retendering process, a second employer becomes responsible for carrying out any particular federal work, undertaking or business, or part of one, that was previously carried out by a first employer, an employee who is employed in or in connection with the its operation before and after the retendering, is, for the purposes of this Division, deemed to be continuously employed with one employer.

  • Marginal note:Non-application

    (1.2) Subsections (1) and (1.1) do not apply if the employee’s first day of employment by the second employer is more than 13 weeks after the day that is the earlier of

    • (a) the employee’s last day of employment by the first employer; and

    • (b) the day on which the federal work, undertaking or business is transferred or the first day the second employer carries out the federal work, undertaking or business, as the case may be.

  • Marginal note:Period of continuous employment

    (1.3) For greater certainty, if an employer’s work, undertaking or business becomes a federal work, undertaking or business due to a change in its activities, for the purposes of this Division, an employee’s period of continuous employment by the employer includes any period in which the work, undertaking or business in or in connection with the operation of which the employee is employed was not a federal work, undertaking or business.

  • Marginal note:Calculation of period of employment

    (1.4) If subsection (1) or (1.1) applies in respect of an employee, any period between their employment by the first employer and their employment by the second employer is not included in the calculation of their period of continuous employment.

  • Marginal note:Exception

    (1.5) For the purposes of an employee’s employment by the second employer, this section does not apply in respect of the calculation of the employee’s entitlement under section 230 if the first employer complied with that section in respect of their employment by that employer.

  • Marginal note:Exception — severance pay

    (1.6) For the purposes of an employee’s employment by the second employer, this section does not apply in respect of the calculation of their entitlement to severance pay under section 235 if the first employer paid them severance pay in respect of their employment by that employer.

  • Marginal note:Inclusion

    (2) For the purposes of subsection (1), a federal work, undertaking or business includes

    • (a) any portion of the federal public administration specified from time to time in Schedule I, IV or V to the Financial Administration Act that is deleted from one of those Schedules and that is established as or becomes a part of a corporation or any federal work, undertaking or business to which this Part applies; or

    • (b) a portion of the federal public administration included in a portion of the federal public administration so specified in one of those Schedules that is severed from the portion in which it was included and that is established as or becomes a part of such a corporation or federal work, undertaking or business.

  • R.S., 1985, c. L-2, s. 189
  • R.S., 1985, c. 9 (1st Supp.), s. 7
  • 1996, c. 18, s. 10
  • 2003, c. 22, s. 112
  • 2018, c. 27, s. 457
 
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