Vacation time, new baby on the way, sick days, family emergencies. There can even be that obscure “I need time off because I’m a military reservist” thing. You name it. Along the way, I learned a great deal. Sometimes the hard way. I learned about how Canadian leave laws work in real life. I thought it might be helpful to share what I know in a personal, story-like way (with sources where relevant). This is for anyone else trying to understand their rights in the workplace. Grab a coffee and let’s get into it. But I’ll try to keep it practical and honest.
Vacation Time… Use It or Lose It (and Get Your 4%)
When I got my first full-time job, no one sat me down to explain how vacation time worked. You should ask for time off when you need it. It’s a bit more structured than that in Canada. By law, most folks earn at least 2 weeks of vacation per year after one year with an employer. That comes with vacation pay of at least 4% of your earnings.
That 4% is equivalent to 2 weeks’ pay. Stick around for five years, and it usually bumps up to 3 weeks’ vacation with a 6% pay increase. In some places or workplaces, after 10 years, you might even receive 4 weeks with an 8% increase. That was the case at one company I joined, which was a nice perk of long service. These are minimums; your employer may provide additional compensation. I’ve been lucky to have a boss who gave an extra week as a loyalty reward before the law required it.
One thing I learned is the difference between vacation time and vacation pay. Early in my career, I worked at a small startup where they didn’t “believe” in tracking vacation. They just added 4% to each paycheck and said, “We’re paying out your vacation as you go; take time off when you need it.” That sounded cool, but it got messy. Legally, you’re supposed to take your vacation time off for your own health and work-life balance.
Vacation pay on every check
Some provinces allow employers to pay out vacation pay on every check. This is especially true for part-time employees or contractors. However, you still have the right to take the actual time off. They can’t refuse you a vacation just because they pay the 4% continuously. In most cases, if you don’t take your vacation, your employer will still have to pay it out anyway. This will happen either at year-end or when you quit. For example, when I left that startup, I got a little extra on my final paycheque because I hadn’t taken all the days I was entitled to.
Keep an eye on that. It’s common to be confused. I’ve seen posts here where employees received vacation pay on each cheque and were then surprised to find they weren’t allowed actually to take their holiday. By law, after 12 months, you are entitled to those weeks off (even if the pay for them was advanced). And if you do take the time, you shouldn’t be double-dipped. This means no extra income is needed, since you already received the 4% in each pay.
Employment standards vary by province
Also, note that employment standards vary by province. The 2-week minimum and 3-week rule after 5 years is standard in both federal and most provincial regulations. But some areas may have slightly different arrangements. For instance, Saskatchewan employees receive 3 weeks of paid leave from year one – a nice benefit for them. Always good to check your provincial employment standards site for “Annual Vacation”. However, overall, if you’ve been at a job for a year or more and they’re not offering you at least two weeks off (or paying you appropriately), then it’s time to move on. That’s a red flag.
Typically 4% of your gross earnings for 2 weeks’ vacation. If you move to 3 weeks, it’s 6%. If you somehow have 4 weeks, 8%. This is why your paystub sometimes shows “Vacation accrued” as a percentage. It’s accruing the payout for when you take time off. If you’re hourly or seasonal, they might just pay it out instead of banking it. Either way, it’s your money. Don’t let it slip away. I had a friend whose employer never paid out vacation pay on each cheque and never gave her time off, breaking the law. She eventually figured it out and filed a complaint to recoup a couple of years’ worth of unpaid vacation wages.
Maternity & Parental Leave – the Baby Maze
When my wife and I were expecting our first child, I had no idea how maternity and parental leave worked. I frantically Googled and even called Service Canada a dozen times. If you’re having a baby or adopting, you’re entitled to take time off work, and your job is protected. This is true across Canada, with specifics varying by province or federal jurisdiction. But all have some form of this.
For a birth mother (the one physically giving birth), there’s maternity leave and then parental leave. Maternity leave typically lasts around 15 to 17 weeks (approximately 4 months) to allow for recovery following childbirth. Parental leave follows, which can be up to 61 additional weeks if you opt for the extended option. This adds up to a total of 78 weeks (18 months) in some cases. Other parents, such as fathers, adoptive parents, or partners, don’t receive “maternity” leave. But rather parental leave, which can be taken for up to 63 weeks (if one parent is taking it alone). It can also be split between two parents, up to a combined total of 71 weeks, if shared.
In plain English, the primary caregiver can take anywhere from 1 to 18 months off, and if both parents work, they can split the time off. There can be a bonus of a few extra weeks if shared. My partner and I decided to share. I took 8 months, and then she took the next 8 months, so we could each spend time with the little one and return to our careers in turn. Canadian law had our backs in terms of job security for both periods.
Canadian Leave Laws
Do you get paid during this leave? Not by your employer (in most cases). These leaves are almost always unpaid by the company, but you likely qualify for Employment Insurance, which is also known as EI, benefits from the government. EI maternity and parental benefits are a whole topic in themselves. However, briefly: a standard length leave entitles you to 55% of your normal pay, up to a cap of around $668 per week. There can also be an extended 18-month leave that receives 33% up to a lower cap (approximately $401 per week). It’s not full income, but it’s something. Some lucky people have employers who top up their EI. This can happen for those in government or big companies, which might pay an extra 20-30% to ease the burden. I didn’t have a top-up, so we had to budget carefully for that year.
Qualifying for job-protected leave
One confusing aspect is that the rules for qualifying for job-protected leave differ from those for qualifying for Employment Insurance pay. For the job leave, provinces often require a minimum length of employment, but it’s usually short. For example in Ontario you must be hired at least 13 weeks before the due date to have pregnancy or parental leave protected. In Alberta, it’s 90 days on the job. However, in British Columbia, Quebec, New Brunswick, and Nova Scotia, there is no minimum age requirement. You’re eligible for leave from day one, theoretically. I wouldn’t recommend getting pregnant just after starting a job as a strategy. But hey, life happens, and those provinces are more forgiving.
To receive EI benefits, however, you generally need 600 insurable hours in the last year. As a result, a brand-new employee might be eligible for leave time but not EI money. I’ve seen confusion where someone posted worried that because they hadn’t been at the job for a year. They couldn’t get maternity leave. Always separate job protection vs EI pay in your mind.
Notice to the employer
You are usually required to provide notice before taking leave, typically 4 weeks’ written notice in many jurisdictions for parental leave. When my wife was about six months pregnant, we each wrote formal letters to our employers outlining when we planned to start our leave and for how long. (Mine was like, “I plan to take parental leave from around DATE for X weeks…”). Employers can also request a medical note confirming the pregnancy and due date, which is a reasonable request. We both provided one. It was no big deal, the doctor or midwife is used to it.
Let’s get one thing clear… Your employer cannot fire or demote you just because you took or plan to take maternity/parental leave. That is considered a reprisal and, in cases of pregnancy, often discrimination. Sadly, I’ve seen it happen. A friend of mine in Winnipeg told me about a coworker who announced her pregnancy and, soon after, was pushed out of her job. She ended up in a legal battle and actually got compensation. This was done because the timing was no coincidence. The news reported a woman getting $5K after being terminated days after disclosing her pregnancy.
Another case I read about: a guy in Quebec asked his boss about taking paternity leave and some pay details – next thing you know, he was dismissed. He challenged the decision and won his case in court, arguing that he had been wrongfully dismissed for requesting parental leave. And out in B.C., a woman named Seema Lall won over $20,000 because the Human Rights Tribunal found her pregnancy was a factor in her termination, which is illegal.
Parental leave and Canadian Leave Laws
The law is unambiguous: you must return to the same or an equivalent job after your leave, with the same pay and benefits as if you had never left. If the company had raises or improved benefits while you were away, you should get those too when you return. Likewise, if there were pay cuts department-wide, you wouldn’t be magically immune just because you were on leave. But they can’t single you out for worse treatment.
While you’re on parental leave, in many places your vacation days continue to accrue just as if you were working, at least for the protected leave period. This can depend on the jurisdiction or employer policy. For example, in Ontario, your service time continues, so you’d still earn vacation credit while off in other areas or if you’re outside the protected period. However, this may not be the case. It’s a good detail to check. When I returned after an 8-month absence, I found that I still had my complete annual vacation available; it was as if I hadn’t missed a beat, at least in that regard.
Sick Leave – No, You Shouldn’t Have to Drag Yourself to Work
We all get sick sometimes. Before 2020, many people felt pressured to work while ill (I certainly did, too many times). However, there is now greater awareness that coming in sick is detrimental to everyone. Most provinces have introduced at least a few job-protected sick days.
The rules vary a lot by region, so I’ll focus on a couple of examples:
Federal
For those who work in banks, telecom, transportation, federal Crown corps, etc. As of recently, federal workers are entitled to up to 10 days of paid sick leave per year. It accrues gradually, at a rate of about 9.3 hours per month. This is a new development and represents a significant win for employee rights. Suppose you’re covered under the Canada Labour Code. You’re entitled to take sick days, and these should be paid out from the 10-day bank of sick leave.
British Columbia
I’m in B.C. now, and we implemented 5 days of paid sick leave each year for all employees as of Jan 1, 2022. You need to have worked for 90 days to qualify, which is approximately 3 months. These 5 days are in addition to the standard three unpaid sick days that were already the law. So, effectively, in B.C., you have five paid and three unpaid sick days that you can use without losing your job or pay (for the first 5). I actually took advantage of this last year when I got a terrible flu. I used three paid sick days in a row, no questions asked, and I still had a couple more for later in the year. My paycheck stayed the same, which was a relief.
Ontario
Currently provides 3 unpaid sick days (they call it “personal emergency leave” but it covers being sick). No paid provincial sick days have been implemented yet (Ontario had two paid days for a short time a few years ago, but then repealed them). So, your employer might voluntarily have a sick pay plan, but the law only guarantees that the time off is protected (for up to 3 days a year in Ontario). Other provinces have similar ranges. e.g., Manitoba has three unpaid days, while Saskatchewan has 12 unpaid days (if 13 weeks of service) for sickness, etc. Quebec notably gives two paid sick days after 3 months, plus additional unpaid time.
Employee taking leave
Don’t ever feel guilty for using the leave you’re entitled to. You earned your vacation, so take it. If you or your family falls ill, focus on getting better, not on work. With a new baby, you’ll never get those early months back, so if you can afford the time, take it. The laws are there to protect you during these life events. As someone who has been on both sides (as an employee taking leave and a manager dealing with employees on leave). I can say it’s much better when everyone understands the rules and plans accordingly. The workplace won’t crumble because you’re off for a while, and you’ll come back better knowing your rights were respected.
I hope that sharing my experiences and knowledge clarifies some of the confusion. It’s a lot to digest, but knowing this stuff can really take the weight off your shoulders when life throws something at you. And if your employer gives you a hard time, you now have some idea of what steps to take. You’re not alone; many of us have been there. Good luck, and take care of yourselves!
Author: Nathaniel Carter is an employment law specialist with over 15 years of experience in Canadian labor standards. He focuses on job-protected leave entitlements and employee rights.
