Vacation Leave

This directive covers vacation entitlements for managers and opted out or excluded employees. It describes how vacation leave and supplement are scheduled and earned, including how they are earned and calculated when employees work only partial months or are on paid or unpaid leaves. It also covers combining vacation leave and a leave of absence, pay out of vacation leave, and recovery of vacation supplement.

Entitlements for bargaining unit employees are contained in the Collective Agreement.

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Scheduling Vacation Leave

The deputy head approves managers' vacation, vacation supplement, or a payout of vacation or vacation supplement.

Employees may split their vacation leave into separate periods, but should take at least one consecutive period of five work days in each calendar year and must take a total of at least two weeks (three weeks with five or more years of service) of vacation leave each year. Employees should schedule vacation leave so that they do not have more than two years of vacation entitlements outstanding.

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Earning Vacation Leave

In the first calendar year employees are employed, they will earn 1 1/4 work days of vacation time for each month they work. If they have enough prior service to qualify, they may earn vacation time at a higher rate. The Public Service Commissioner may authorize a higher earning rate for managers in special recruitment circumstances.

Vacation entitlements are earned and accumulated each full calendar month. Employees can take vacation as it is earned. Earning rate changes in the month following the month vacation service threshold is reached.

The following table sets out the amount of vacation time employees earn in each year after completing specific months or years of service. It also sets out the rate at which employees earn vacation time for each full calendar month they work.

Table: Calculating Vacation Leave

Service

Vacation Time

Earning Rate

12 months
15 work days
1 1/4 days
5 years
20 work days
1 2/3 days
13 years
25 work days
2 1/12 days
21 years
30 work days
2 1/2 days
30 years
35 work days
2 11/12 days

First Year Vacation Credit

In addition, an employee hired into a permanent or temporary salaried position shall receive a Vacation Credit, five (5) work days' vacation credited at the date of commencement. Employees are eligible to take five (5) days of Vacation Credit in their first year of employment. First year vacation credit shall be taken by the employee no later than the end of the second calendar year of employment. Should an employee terminate employment prior to the end of the first year (12 full calendar months) of employment and have taken the full vacation credit, the employee will be required to pay back the amount of the vacation credit at the rate of 5/12 work days for each full calendar month as per the formula below: vacation credit owed = five (5) work days' vacation credit - (5/12 x number of months worked in the first year of employment).

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Earning Vacation Supplement

Management employees earn a vacation supplement at the rate of 5/12 work days for each full calendar month, because they often work extra hours without additional compensation.

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Recovery of Vacation Supplement

Managers who are paid out for (or who take) the vacation supplement and who subsequently resign or are dismissed will pay back, at the same salary rate they were paid out, the part of the vacation supplement they had not yet earned.

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Calculating Vacation Leave for Partial Months

If an employee works for only part of a month, vacation and vacation supplement entitlements will be calculated as follows:

  • If an employee begins employment on or before the 15th day of a month and works the rest of the month, that month will count as a full calendar month.

  • If an employee is terminated on or after the 15th day of a month and worked from the first day of that month, that month will count as a full calendar month.

  • If calculating the period of vacation leave for a year results in a fraction of a half day or less, the fraction will be rounded to the next half day. If a fraction of more than a half day results, the fraction will be rounded to the next full day. This does not apply to vacation pay out.

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Earning Vacation Leave During Paid or Unpaid Leaves

An employee continues to earn vacation leave (and vacation supplement if the employee is a manager) while on the following paid or unpaid leaves:

  • military leave

  • financially assisted staff development leave

  • for the first 44 consecutive work days of sick leave, supplemental unemployment benefits, or workers' compensation leave

  • for the first 22 consecutive work days of all other leaves of absence

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Combining Vacation Leave and a Leave of Absence

If an employee is authorized to combine a leave of absence with a period of vacation leave, the vacation leave will be considered to precede the leave of absence.

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Pay Out of Vacation Leave

Managers will be paid out for vacation leave and vacation supplement when one of the following conditions applies:

  • their employment terminates

  • their outstanding vacation leave and vacation supplement exceeds two years of entitlements, in which case they will be paid out at fiscal year-end

  • they request pay out and obtain their deputy head’s approval (they may request pay out for any amount, provided that they keep two weeks (three weeks with five or more years of service) of entitlements to be taken as leave in the vacation year)

  • an employee who has been approved for an advance payment of group life insurance due to terminal illness may request a payout of all earned annual vacation

Opted Out and Excluded Employees in Schedule 1 Part 2-A and Schedule 1 Part 2-B will be paid out for vacation leave when one of the following conditions applies:

  • the employee’s employment terminates; or

  • the employee requests pay out and receives the approval of the deputy head (they may request pay out for any amount, provided that the employee keeps 2 weeks (three weeks with five or more years of service) of entitlements to be taken as leave in the vacation year).

  • an employee who has been approved for an advance payment of group life insurance due to terminal illness may request a payout of all earned annual vacation

All vacation leaves and supplements will be paid out at an employee’s regular rate of pay, as follows:

  • at the employee's salary rate (including acting pay) at the time the leave is paid out (the rate will not be adjusted to include retroactive salary adjustments)

  • in the case of retirement or death, the pay out will include any retroactive salary increases

The entitlement amount paid out is never rounded up.

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About this Directive

Authority:   Public Service Employment Regulation
Application:   Organizations Under the Public Service Act
Effective Date:   1 July 2014
Contact:   Labour Relations

For inquiries regarding your specific entitlements as displayed in MyAGent, please contact your Ministry Human Resource/Payroll Office.

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