From our payroll expert, Alan McEwan. Sorry to keep you waiting.
No, there is no reason an employer can’t have different vacation pay policies for different employee groups.
It’s a common practice to accrue vacation pay for some employees and for others, particularly casual or hourly employees, to pay this on every direct deposit.
However, in Ontario, employees have to agree to get their vacation pay every pay period. That agreement can be part of the terms of conditions of employment on hire, for example.
