Every employee in Ontario, whether temporary, seasonal, contract, full-time or part-time, is entitled to vacation time each year.
The amount of vacation time an employee is entitled to is based solely on their years of service with their employer. The minimum vacation time under the Ontario Employment Standards Act, 2000 is as follows:
- An employee with less than 5 years of service is entitled to 2 weeks of vacation time; and
- An employee with 5 years of service or more is entitled to 3 weeks of vacation time.
Quick overview (TL;DR:)
Yes, an employer in Ontario can revoke approved vacation time, but only if it is based on reasonable business needs, done in good faith, and with reasonable notice. Employees keep their statutory rights to vacation time and pay, and employers must avoid discrimination and compensate for any financial losses caused by revocation. Clear communication and documentation can help prevent disputes.
When can you use vacation time?
While employees are entitled to vacation time, it’s at the employer’s discretion as to when they can take it. An employer has the right to approve or refuse vacation requests based on business needs. For example, an employer may reject a vacation request if other team members have already requested time off and another approved request would limit staff during that time.
While vacation time requests can be refused, employees have the right to take vacation time within ten months after completing the 12-month vacation entitlement year.
Can your employer revoke an approved vacation time?
While this may be surprising, employers often have the right to alter or revoke a pre-approved vacation time in accordance with reasonable business needs. However, this will be subject to what may be considered ‘reasonable’.
Asking an employee to answer simple questions or respond to an email should not require an employee to cancel a vacation. However, situations where staff may be limited, or an unexpected business deadline has emerged may be considered reasonable. The nature of an employee’s role will play a large role when assessing the reasonableness of the circumstances. If an employer forces an employee to cancel a pre-approved and pre-booked vacation, the employee may be liable for financial losses stemming from a cancelled vacation.
Legal framework surrounding vacation revocation in Ontario
The Ontario Employment Standards Act, 2000 (ESA) sets out minimum standards for vacation time and vacation pay but does not explicitly prohibit an employer from revoking approved vacation time. This means that while employees have a legal right to vacation time and pay, employers retain some authority to manage vacation scheduling, including revocation, based on legitimate business needs.
Employers must act in good faith and provide reasonable notice when revoking approved vacation to avoid potential legal liability.
Employer’s right to schedule and manage vacation time
Employers in Ontario have the right to schedule vacation time to ensure efficient business operations. This includes the ability to:
- Approve or deny vacation requests based on staffing and business demands.
- Schedule vacation in blocks of one or two weeks for employees with less than five years of service, or in blocks of up to three weeks for employees with five or more years of service.
- Require employees to take vacation during company shutdowns or slow periods.
Reasonableness and notice requirements
When revoking approved vacation, employers should provide as much notice as possible and explain the reasons for the revocation. What is considered reasonable will depend on factors such as:
- The timing of the revocation relative to the vacation start date.
- The nature of the employee’s role and the impact on business operations.
- Efforts made to minimize inconvenience to the employee.
Failure to provide reasonable notice or revoking vacation arbitrarily can lead to claims of bad faith or constructive dismissal.
Financial implications of revoked vacation
Employees who face financial losses due to revoked vacation, such as non-refundable travel or accommodation costs, may be entitled to compensation. Keeping receipts and booking confirmations is important to support any claims.
Employers sometimes offer compensation voluntarily, but if they refuse, employees should seek legal advice. Early notice from employers helps reduce financial harm and inconvenience to employees.
Employee protections against unfair revocation
Employers cannot revoke vacation for discriminatory reasons, such as race, gender, disability, or other protected grounds under the Ontario Human Rights Code.
Employees who believe their vacation was revoked unfairly can raise the issue with their employer, file a complaint with the Ministry of Labour, or seek legal advice.
Practical advice for employees
- Submit vacation requests in writing and retain copies of approvals.
- Understand your employer’s vacation policies, including any electronic or written agreements.
- If your vacation is revoked, request a written explanation and reasonable notice.
- Document any financial losses incurred due to revoked vacation.
- Consult an employment lawyer if you suspect your rights have been violated.
Practical advice for employers
- Establish clear, written vacation policies outlining approval, scheduling, and revocation procedures.
- Communicate vacation policies and any changes to employees promptly.
- Provide reasonable notice and act in good faith when revoking approved vacation.
- Consider compensating employees for financial losses incurred due to revoked vacation.
- Ensure vacation decisions are consistent and non-discriminatory.
Vacation pay and termination
Upon termination of employment, employers must pay out any accrued but unused vacation pay within seven days or the next pay day, whichever is later. This pay is based on wages earned during the vacation entitlement year.
Employers cannot withhold vacation pay even if the employee did not take their vacation time before termination.
If you have questions about your vacation time, or need to better understand your rights around vacations, please contact Whitten & Lublin online or by phone at (416) 640-2667.
Frequently Asked Questions
Can an employer revoke approved vacation without notice?
Employers should provide reasonable notice when revoking approved vacation. Lack of notice or abrupt revocation may be considered unreasonable and could lead to legal claims.
What if my employer revokes my vacation and I lose money on non-refundable bookings?
You may be entitled to compensation for financial losses caused by revoked vacation. Keep all receipts and documentation and seek legal advice.
Can my employer deny my vacation request?
Yes, employers can deny vacation requests based on legitimate business needs but cannot deny vacation time altogether.
Are there limits on how employers can schedule vacation?
Employers must schedule vacation in blocks of one or two weeks (or three weeks for employees with five or more years of service), unless the employee agrees to shorter periods in writing or electronically.
Does revoking vacation violate the Employment Standards Act?
The ESA does not explicitly prohibit revoking approved vacation but requires employers to act in good faith and comply with minimum vacation entitlements.
