HR Home Forums Community 18-month fixed term contract – Vacation Questions

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  • vickyp
    Keymaster
    Post count: 4922

    Hello,

    I have two questions regarding an 18-month fixed term contract in Ontario.

    1. If an employee is on an 18-month contract, and we pay out 4% of vacation pay, are they owed any additional vacation/time off?
    2. If an employee is on an 18-month contract, should we specify in the offer letter how much unpaid time off they can take?

    I would be grateful for any guidance you can help provide.

    vickyp
    Keymaster
    Post count: 4922

    1. No, they are not owed any additional vacation/time off.
    2. Yes, a limit on unpaid time off should be added to the contract; however, there is leave that would be outside of this, such as family care, etc. As well, it is important to keep in mind that you cannot terminate for an employee being sick, but you can terminate for an employee having attendance and performance issues – sometimes the line can be grey, but it is important to keep that in mind when documenting limits on unpaid leave.

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