Annual leave, commonly referred to as "vacation," is a fundamental right of employees in Quebec. Yet many workers and employers are unfamiliar with the applicable rules. This is notably the case regarding the number of vacation weeks and the calculation of the indemnity. Here is therefore a clear overview of how annual leave works under labour standards.

A right governed by law

In Quebec, annual leave is governed by the Act respecting labour standards. This law sets out mandatory minimums that every employer must respect. This applies regardless of the sector of activity, with certain specific exceptions. Furthermore, the right to vacation is accrued based on the duration of the employee's uninterrupted service with the same employer.

How many weeks of vacation?

The number of vacation weeks depends primarily on seniority :

• Less than 1 year of service : The employee is entitled to 1 day of vacation per month worked, not exceeding 2 weeks.
• Between 1 year and less than 3 years of service : The employee is entitled to 2 continuous weeks of vacation.
• 3 years of service or more : The employee is entitled to 3 continuous weeks of vacation.

The vacation indemnity

Annual leave is not only a matter of time. It also concerns remuneration. During their vacation, the employee is therefore entitled to an indemnity, generally calculated as follows :

• 4% of gross salary for employees with less than 3 years of service
• 6% of gross salary for those with 3 years or more

The reference period and taking vacation

The law provides for a "reference year," often from May 1 to April 30. During this period, the employee accrues their annual leave. Vacation must then be taken within the following 12 months.

In principle, the employer determines the vacation period. However, they must take the employee's preferences into account as much as possible. Furthermore, they must inform the employee of their vacation dates at least 4 weeks in advance.

Vacation must be taken continuously, unless otherwise agreed. For example, an employee entitled to 3 weeks may agree to split them.

Can vacation be carried over or replaced?

As a general rule, vacation must be taken. It therefore cannot be replaced by an indemnity, except at the end of employment. The objective is to allow the employee to genuinely rest.

However, certain agreements may allow for a partial carry-over of vacation. This is notably the case in particular contexts, such as illness or an agreement with the employer.

What happens at the end of employment?

When an employee leaves their job, they retain their accrued rights. They are therefore entitled to payment of any accumulated but unused vacation indemnity. This amount must be paid with the final paycheque.

Watch out for internal policies

Some companies offer conditions that exceed the minimum standards. This is notably the case with unlimited vacation, additional weeks, or leave banks. These policies are generally valid. However, they must not contravene the minimums set out by law.

Conclusion

The rules surrounding annual leave aim to ensure a balance between work and rest. Although the law establishes minimum standards, particular situations may vary. Indeed, the employment contract or the employer's policies may alter certain conditions.

In case of doubt, whether you are an employer or an employee, it is recommended to consult a professional. Our firm can help you ensure that your rights and obligations under labour law are respected. A thorough understanding of the rules helps avoid disputes. It also fosters a healthy work environment that complies with legal requirements.