In Nova Scotia it is a legal requirement for employers to provide employees with both vacation time-off and vacation pay. Many employers do not understand the concept of vacation time-off versus vacation pay.
In laymen’s terms, employees with less than 8 years’ service are entitled to 2 weeks’ vacation time-off. Their vacation pay, however, is a variable. Employees with less than 8 years’ service are entitled to 4% vacation pay based on all wages earned during the year.
Concomitantly, employees with more than 8 years’ service are entitled to 3 weeks’ vacation time off. And, their vacation pay is 6% of all wages earned during the year.
Employers may pay employees their vacation pay on each cheque or at least one day before the employees’ vacation begins.