To : Simone Page
Form : XXXXXXXXXXXX
Date : August 25, 2021
Re : Implementation of Vacation Leave and Vacation Pay Policy.
Hello Simone,
As per management decision, we would require implementing a company-wide vacation policy that
provides the same benefits to all employees, regardless of their province of employment in Manitoba,
Prince Edward Island and Yukon. We need to consider following specific issues covering employees’
vacation; these are minimum amount of vacation time, when they can take vacation, total vacationable
earnings and percentage of vacationable earnings they receive.
We can make the vacation policy, based on the following table considering the vacation entitlement,
vacation period and vacation pay considering each jurisdiction’s employment standards.
JURISDICTION LENGTH OF ANNUAL
VACATION
ENTITLEMENT
PERIOD*
VACATION PAY
(% x VACATIONABLE EARNINGS)
Manitoba 2 weeks
3 weeks after 5 consecutive
years
10 months 4%
6% after 5 years
PEI 2 weeks
3 weeks after 8 consecutive
years
4 months 4%
6% after 8 years
Yukon 2 weeks after 12 months 10 months 4% after 14 consecutive days of
employment
*Entitlement period refers to the time frame in which earned vacation must be used.
It is important to note that an employee can’t waive his/her rights to the minimum legislated vacation
time without permission from the Director/Minister of Employment/Labour Standards. The only
exception to the waiving of vacation time off occurs in the Yukon. The employer and employee may
agree in writing that the employee isn’t taking a vacation the employer must pay the vacation pay which
the employee has earned.
Vacation pay is calculated as a percentage of gross vacationable earnings. Vacation pay is to be paid at
the time the employee takes their vacation or on termination of employment, whichever occur first.
Vacationable earnings include regular wages or salary, call-in pay, shift premium, retroactive pay and
commissions earned by a route salesperson or at the employer’s premises in all jurisdictions, overtime
pays except Manitoba, work related bonus, pay in lieu of notice of termination except Manitoba,
statutory/general/public holiday pay, board and lodging taxable benefit, domestic or sexual violence
leave pay only for Manitoba