Vacation Policy – Ontario

It’s important to have a written policy providing employees at least the vacation time and pay to which they’re entitled under the employment standards laws of your jurisdiction. Here’s a vacations policy template based on the requirements of the Ontario Employment Standards Act that employers can adapt.

  1. POLICY

ABC Company provides employees paid vacation and vacation pay as required by the Employment Standards Act (“ESA”), and associated (“Regulations”). The provisions set out in this Policy reflect the minimum vacation benefits that an employee is entitled to receive under the ESA and Regulations. While employees will receive nothing less, ABC Company may grant employees compensation and benefits that are more generous than those required by this Policy under the terms of collective agreements and individual employment contracts with employees.

  1. SCOPE

This Policy applies to employees who are covered by the ESA. It does not apply to employees who are:

  • Exempt from the ESA or specific provision(s) of the ESA on which a particular Section of this Policy is based; or
  • Employed in an industry that is subject to specific employment terms and conditions under a separate regulation made under the ESA, e.g., ambulance services, automobile manufacturing, or mineral exploration and mining.

  1. DEFINITIONS

For purposes of this Policy:

“Alternative vacation entitlement year” means recurring 12-month period that begins on a date chosen by ABC Company, other than the first day of the employee’s employment;

“Standard vacation entitlement year” means a recurring 12-month period that begins on the first day of the employee’s employment;

“Stub period” means, with respect to an employee subject to an alternative vacation entitlement year:

  • If the employee’s first alternative vacation entitlement year begins before the completion of the first 12 months of employment, the period that starts on the first day of employment and ends on the day before the start of the alternative vacation entitlement year;
  • If the employee’s first alternative vacation entitlement year begins after completion of the first 12 months of employment, the period that begins on the day after the day on which the most recent standard vacation entitlement year ended and ends on the day before the start of the alternative vacation entitlement year;

“Vacation entitlement year” means an alternative vacation entitlement year or a standard vacation entitlement year…