Accrued vacation pay and final earnings
What Happens to Vacation Pay When Employment Ends?
Understand why earned vacation pay usually remains payable when employment ends and how the wage base and deadline vary.
Key point
Ending employment does not normally erase vacation pay already earned. Calculate the remaining statutory amount, subtract valid payments already made and include it with final earnings by the jurisdiction’s deadline.
- Confirm the vacation year, accrual method and service-based percentage.
- Include termination or notice payments in the vacation-pay base where required.
- Account for vacation pay already paid on each cheque or before vacation.
Reconcile the vacation ledger
Collect wages by vacation year, the applicable rate, vacation taken, pay issued and any accrued balance. Later commission payments may create additional vacation pay after the last day.
Notice and termination payments
Some jurisdictions include statutory termination or compensation-in-lieu amounts in the vacation-pay base. Do not assume the base is the same across Canada.
Final payment
The final-pay deadline can depend on who ended employment, the regular payday or the pay-period end. Record the rule and due date with the termination file.
Related WageWise resources
Official sources
- BC policy: Vacation Pay, section 58
- Alberta: Vacations and vacation pay
- Ontario: Vacation
- Federal: Pay and deductions
Rules can change and special occupations, agreements or facts can alter the result. Confirm the current official rule for the jurisdiction where the work is performed.