🆕 Per-Pay-Period Accrual (PEI Unique): PEI vacation pay accrues per pay period rather than as a year-end percentage. Every pay period, the employer must calculate 4% or 6% of the wages earned in that period and add it to the vacation pay accrual.
🆕 After-Vacation Payment (PEI Unique): PEI requires vacation pay to be paid AFTER the vacation ends, not before. Section 30(3) requires the employer to pay the accrued vacation pay by the last day of the next pay period after the vacation ends. This is the opposite of most provinces.
Part-Time Year-Round Employment: An employee who works (or will work) for 12 continuous months and works less than 90% of the employer's normal working hours can request vacation pay instead of vacation time. Written notice must be given before either the end of the 12-month period or the first pay period.
Seasonal Employment: For seasonal and short-term employees, the employer may include vacation pay in the employee's regular pay IF all three conditions are met:
- The employer can show the employee knows vacation pay is included
- The employer's payroll records show vacation pay was paid
- The employee's pay statement shows vacation pay was included
If any condition is NOT met, an inspector may decide that vacation pay was not paid and require the employer to pay it.
Paid Holiday During Vacation: When a paid holiday happens during the employee's vacation, the vacation is lengthened by one day, and the employee is paid for that day.
Better Benefits: If an employer and employee agree to BETTER vacation pay than the law requires, that agreement will be followed.
Vacation Time Deadline: Vacation time must be given within 4 months after the 12-month work period ends, unless otherwise agreed.
Notice: Employee must be given at least 1 week's notice before vacation starts.
