HR Home Forums Private Vacation Pay / Carryover

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  • Kyle Charters
    Post count: 5


    We are based in Ontario and allow staff to take paid vacation prior to completing 12 months of employment. We have an alternative vacation entitlement year (Jan. 1st – Dec. 31st). If we have an employee who started on November 1st 2023, and they are entitled to 4% vacation pay, we would need to pay out accrued vacation pay on December 31st 2023 if we don’t allow them to carryover vacation, correct?


    Rick Tobin
    Post count: 58

    If you do not allow carryover, then yes, you are required to pay out the earned vacation pay for this and all employees at the end of the year as it is illegal to have a use it or lose it vacation policy in any jurisdiction in Canada. Time can be lost, but money cannot.

    HR Insider Staff

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