Vacation Pay and Entitlement
As an employer regulated by Manitoba’s Employment Standards Code (ESC), you are responsible for ensuring your employees receive time off and vacation pay. This is important for both employee well-being and the success of your business.
Vacation Entitlement
Employees are entitled to at least two weeks of vacation with pay after working with the same employer for one year and three weeks with pay after working with the same employer for five years. This entitlement applies to all employees, regardless of employment status (i.e. full-time, part-time, or casual).
Vacation entitlement is based on an employee’s length of service. This also determines how to calculate vacation pay, starting on an employee’s hire date.
Vacation pay entitlement is calculated as follows:
Vacation Pay
| Minimum Standard | Less than one year of employment | 1-5 years of employment | More than 5 years of employment |
| Vacation Time | Not entitled unless stated in the contract | Two (2) weeks of vacation time after each 12-month vacation entitlement year | Three (3) weeks of vacation time |
| Vacation Pay | 2% of yearly wages | 4% of yearly wages | 6% of yearly wages |
For each week of vacation, employees are entitled to 2% of the wages earned in that year. Meaning that employers may put vacation pay on every cheque, or they may choose to payout at the time of the vacation leave.
As an employer, you must provide at least the minimum standards set out in the ESC. While you may choose to offer greater rights and benefits to staff, you cannot provide less than the minimum standards listed above.
What happens when a worker’s vacation falls on a holiday?
In Manitoba, general holidays are not counted as vacation days. If an employee’s vacation is during a holiday, they receive another day of vacation and general holiday wages for the day instead.
Questions about vacation pay?
If you still have questions about how to provide vacation time and pay for your employees, call today. Our experts have the expertise you need to ensure that you provide your employees with the vacation time and pay your they are owed—keeping you compliant with Employment Standards. Give our free employer advice line a call today at 1 (888) 219-8767.