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Vacation Pay in British Columbia Explained
Vacation pay in British Columbia is not a perk. It is a statutory right under the Employment Standards Act of British Columbia. It cannot be waived by contract, cannot be skipped if vacation time is not taken, and must be paid out in full when employment ends. Many employees in BC are being underpaid without realizing it, particularly when commissions or overtime are excluded from the calculation.
Think your vacation pay may have been calculated incorrectly?
Vacation pay errors are one of the most common sources of employment standards complaints in BC. If commissions, overtime, or bonuses were excluded from your vacation pay calculation, you may be owed back pay. Get advice before the limitation period runs out.
Call: 1-800-771-7882 Speak With a BC Employment LawyerWhat are your vacation pay entitlements in BC?
Under the Employment Standards Act of British Columbia, vacation time and vacation pay are two separate entitlements that employees are owed together. Vacation pay is not only paid when you take vacation. It accrues as you earn wages throughout the year and must be paid out even if you never take a day off.
What counts as wages for vacation pay purposes?
Vacation pay must be calculated on your total wages, not just your base hourly rate or salary. This is one of the most common points where employers get the calculation wrong. Wages that must be included in the vacation pay calculation include regular earnings, overtime pay, commissions, and certain non-discretionary bonuses.
The BC Employment Standards Tribunal has consistently confirmed that commissions must be included in vacation pay calculations and that employers cannot hide vacation pay inside general wage rates without clearly identifying it. If your pay stub does not show vacation pay as a separate identified amount, that is a warning sign worth investigating.
How vacation pay is calculated in BC
The calculation is straightforward. Multiply your total wages earned in the relevant period by the applicable percentage. The percentage that applies depends on how long you have worked for the same employer.
Were your commissions or overtime excluded from your vacation pay?
This is a common and often significant error. If your employer calculated vacation pay only on your base salary and excluded commissions or overtime, you may be owed back pay going back up to two years.
Find Out What You Are Owed Or call us: 1-800-771-7882When must your vacation pay be paid?
| Situation | When vacation pay must be paid |
|---|---|
| You take vacation during employment | At least 7 days before vacation begins, or on the regular payday if agreed |
| Vacation pay on each paycheque | Identified separately on each pay stub as a percentage of wages |
| Employer terminates your employment | Within 48 hours of the termination date |
| You resign | Within 6 days of your last day |
Does vacation pay continue to accrue during protected leaves?
Yes. You continue to accrue vacation pay while on maternity or parental leave, medical or disability leave, and WorkSafeBC leave. Your employer cannot pause or stop vacation accrual because you are on a protected leave. If your vacation pay was not calculated to include periods of protected leave, that may be an underpayment you can claim.
Signs your vacation pay may be incorrect
What to do if you think you are owed vacation pay
Review your pay stubs
Check whether vacation pay is identified separately and whether the percentage matches your entitlement. If it is not clearly shown, it may not have been calculated correctly.
Check that all wages were included
Confirm that commissions, overtime, and any non-discretionary bonuses were included in the vacation pay calculation. Compare your total earnings to what vacation pay was actually paid.
Keep records
Save pay stubs, your employment agreement, commission statements, and any communications about vacation pay. These are critical if you need to file a complaint or pursue a claim.
Get legal advice before raising the issue
If you are concerned about how your employer will respond to a vacation pay dispute, speaking with a BC employment lawyer first can help you understand your options and protect your position before you raise it internally.
Frequently asked questions about vacation pay in BC
How much vacation pay am I entitled to in BC?
Under the Employment Standards Act of British Columbia, you are entitled to 4% of your total wages as vacation pay during your first five years of employment with the same employer, and 6% after five or more years. These are minimums that cannot be reduced by contract.
Does vacation pay have to be calculated on commissions in BC?
Yes. Commissions are wages and must be included in the vacation pay calculation. The BC Employment Standards Tribunal has confirmed this repeatedly. If your employer has calculated your vacation pay only on base salary and excluded commissions, you are likely being underpaid and may have a claim for the shortfall.
Do I get vacation pay if I do not take any vacation in BC?
Yes. Vacation pay accrues as you earn wages and is owed regardless of whether you actually take vacation time. If you leave your job without having taken all your accrued vacation, your employer must pay out all accrued vacation pay at the end of employment.
When does my employer have to pay out vacation pay when I leave in BC?
If your employer terminates your employment, all accrued vacation pay must be paid within 48 hours. If you resign, it must be paid within 6 days. Failure to pay within these timelines is a violation of the Employment Standards Act of British Columbia.
Can my employer include vacation pay in my regular wages without separating it?
This practice is high risk and often results in underpayment. Where vacation pay is not clearly identified as a separate amount on each pay stub, employers frequently fail to meet their obligations. If you cannot identify vacation pay as a separate line item on your pay stub, get advice on whether your entitlements are being met.
What can I do if my employer has not paid my vacation pay in BC?
You can file a complaint with the Employment Standards Branch of British Columbia, which can order your employer to pay back wages and apply penalties. You can also speak with a BC employment lawyer to assess your options. Limitation periods apply, so acting promptly protects your ability to recover the full amount owed.
Speak with a BC employment lawyer
If you believe your vacation pay has been miscalculated, not paid on termination, or reduced by an agreement that cannot legally override the Employment Standards Act, our team can help. We advise employees across British Columbia on vacation pay disputes and employment standards complaints. Contact us for a confidential consultation.
Call us at 1-800-771-7882 or fill out the form below and we will be in touch.
The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Achkar Law Professional Corporation and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Achkar Law Professional Corporation. ©