Earning vacation during paid or unpaid leavesDistinction between vacation time and vacation payBy Colin Gibson02/06/2019|Canadian Employment Law Today|Last Updated: 02/06/2019 Question: Does the time an employee spends on paid or unpaid leave count as time served for the purpose of earning vacation? Can an employer have a policy specifying that it doesn’t?Answer: Across Canada, provincial employment standards legislation sets out the minimum vacation employees are entitled to, and how vacation is earned. For employees in federally-regulated industries, these entitlements are set out in the Canada Labour Code. While vacation entitlements are similar across Canadian jurisdictions, employers should check the applicable legislation before making a decision about vacation.Employment standards statutes draw a distinction between vacation time and vacation pay. Vacation time is earned based on the employee’s length of continuous service with the employer. In most Canadian jurisdictions, employees are entitled to a minimum of two weeks’ vacation per annum after completing the first year of employment, and then three weeks’ vacation per annum after five years of employment. To Read the Full Story, Subscribe or Sign In Remember Me Forgot Password If you are a current Subscriber, please click here to set-up or update your login information.