Vacations
Introduction
Answer the questions listed in each step to find out if your business meets the basic requirements for Alberta's employment standards for vacations and vacation pay. On the last page you’ll see results based on your answers, along with information about your rights and obligations as an employer.
Use the 'Previous' button to change your answers at any time. Or click ‘Start again’ to explore different employment scenarios.
Disclaimer: In the event of any discrepancy between this information and Alberta’s Employment Standards legislation, the legislation is considered correct.
Summary & Results
You indicated that:
Please note that effective January 31, 2020, farm and ranch employers with 5 or fewer waged, non-family workers, are exempt from employment standards laws. Farm and ranch employers with 6 or more waged, non-family workers who work more than six months in a row will continue to be subject to existing Employment Standards laws. For more information and to identify if the information below applies to you, please visit the Farm and ranch – Employment standards exemptions website.
Is the employee eligible for vacation time off and vacation pay?
No, the employee is not eligible for vacation time off or vacation pay. Workers who either are the owner or a family member of the owner of the farm/ranch they are working on are exempt from all Employment Standards rules, including vacation pay and time off.
Non-family members working on the farm to help out or participate in 4-H activities are also exempt from Employment Standards rules.
For more information, see farm and ranch employment standards exceptions.
Yes, the employee is eligible for vacation time off and vacation pay.
The employee is not entitled to vacation time off, but they are entitled to vacation pay. They must receive vacation pay at a rate of at least 4% of their regular wages.
Many employers pay out vacation pay owed to employees on each pay cheque as vacation pay can be paid to the employee at any time. However, it must be paid no later than the pay day following when the employee starts vacation leave. If it is not paid before the employee’s vacation starts, the employee may request the employer to provide vacation pay one day before the vacation starts and the employer must comply with their request.
Yes, the employee is eligible for vacation time off and vacation pay.
Workers in the construction industry are not entitled to time off, but they are entitled to vacation pay. They are entitled to vacation pay from the start of employment at the rate of at least 6% of their regular wages.
Workers in the construction industry are not entitled to time off, but they are entitled to vacation pay. They are entitled to vacation pay from the start of employment at the rate of at least 6% of their regular wages.
A period during which an employee is on protected leave is included when calculating the employee’s years of employment. The total years of service, including the time on protected leave, is used to determine the number of weeks of vacation entitlement.
How much vacation time off is the employee entitled to?
The employee is entitled to weeks off.
Part-time employees get the same amount of vacation time as full-time employees. Based on your answers, your employee would get weeks of vacation.
When can the employee take their vacation time off?
Employees must take their time off within 12 months after the employee has become entitled to the vacation.
It is always best for employers and employees to come to a mutually acceptable agreement on when to take a vacation, but if they can't reach an agreement, the employer can decide when the employee will take time off. In this situation, the employer MUST inform the employee in writing two weeks in advance.
Time off must be taken in one unbroken period unless the employee requests multiple shorter periods in writing - keep a copy of any such request made by an employee.
Time off can be taken in half-day increments, with agreement by both the employer and employee.
Vacation Pay
Vacation pay is calculated as a percentage of the employee’s total wages. Part-time employees earn vacation pay at the same rate as full-time employees. Their total vacation pay will be less than full-time employees who work at the same wage rate, but the calculation is the same.
Since the employee's wages are paid monthly, the Code requires the employer to pay an amount at least equal to the employee's current wage for a normal work week. A week's wage can be calculated by taking the total wages for normal hours of work in a month and dividing by 4.3333. Vacation pay is based on the employee's current salary at the time the vacation is taken.
Since the employee's wages are not paid monthly, the Code requires the employer to pay:
- For an employee entitled to 2 weeks’ vacation or any lesser amount, 4% of the employee’s wages for the year of employment for which vacation is given, or
- For an employee entitled to 3 weeks’ vacation, 6% of the employee’s wages for the year of employment for which vacation is given.
Note that for (a) or (b), you calculate vacation pay based on "wages" and not based on total "earnings" - earnings include holiday pay, overtime pay, etc.. Wages include salary, pay, money paid for time off instead of overtime pay, commission or remuneration of work, however calculated. Wages do not include:
- overtime pay, vacation pay, general holiday pay and termination pay
- a payment made as a gift or bonus that is dependent on the discretion of an employer and that is not related to hours of work, production or efficiency
- expenses or an allowance provided instead of expenses
- tips or other gratuities.
All construction employees must be paid vacation pay equal to 6% of their wages. For more information on vacation pay for construction employees, see the employment standards page.
Next steps
- Print these results for your records
- To learn more, please refer to the relevant topics of the employment standards rules and regulations.
- Restart this vacations tool to explore different scenarios.