When it comes to taking time off work in Ontario, many employees (and employers) are confused about the difference between vacation time and vacation pay. Both are mandated by the Employment Standards Act, 2000 (ESA), but they are distinct entitlements with different purposes and rules.Continue Reading Vacation Math: Why Time ≠ Pay Under Ontario’s ESA
Unlimited Vacation sounds great in theory – employees take time when they need it, the administrative burden of ‘counting days’ is alleviated, the ‘use it or lose it’ drama disappears, and employers are able to avoid the “helicopter parenting” style of monitoring an employee’s vacation entitlements.
The Unlimited Vacation perk has become increasingly popular with the rise of burnout recognition, a greater understanding of the value of ‘mental health days’, and a less rigid take on the typical 9 to 5. It’s trendy too: In 2024, 26% of tech companies offered Unlimited Vacation (versus 15% total market)1
Before you start deleting any vacation request forms from your HR drive, consider this: in Ontario (and across Canada), Unlimited Vacation policies may create more problems than they solve, especially if they’re not drafted carefully or maintained properly. Continue Reading Unlimited Vacation: Dream or Drama?
Since 2019, there have been five proposed class actions against insurance companies and banks for failure to pay proper vacation pay to employees, both past and present. The total amount claimed in the aggregate of these five actions is around $1.2 billion. Royal Bank of Canada is a named party in three of the five actions; in one, it is facing a proposed $800-million class-action lawsuit involving thousands of advisors. Bank of Montreal and Allstate Insurance are also named in these class actions. A significant aspect of the allegations against these employers revolves around the calculation of their employees’ vacation pay. The issue is that for many of these employees, the majority of their compensation is and was made up of commissions and bonuses. Their vacation pay, however, was and continues to be based solely on their much lower base salaries.
Continue Reading Vacation pay class actions a heads up for employers