Ask the ExpertDeducting Pay for vacation used but not accrued
hri_Admin Staff asked 3 years ago

I recently heard that if you allow an employee to take vacation time that they have not yet accrued, and then they quit or are terminated, that you cannot deduct that amount that they took extra from their final pay because their manager okay’d it. It this true?
I am in Manitoba

1 Answers
Glenn Demby Staff answered 3 years ago

From Alan McEwen, our payroll expert:
In Manitoba, unless an employee agrees in writing, an employer’s ability to recover vacation pay paid before the entitlement was fully earned is capped at what could be garnished.
This means that 70% of the vacation advance is free from garnishment, to a minimum dollar exemption of $250 (no dependents) or $350 (if the employee has dependents)