Vacation entitlement years are used to help determine how much vacation time and vacation pay an employee is entitled to have. A vacation entitlement year is the 12-month period over which an employee earns vacation. As for time off, an employee is entitled to two weeks of vacation time after each vacation entitlement year. As for vacation pay, an employee is entitled to at least 4% of the gross wages he or she earned in the vacation entitlement year.
When determining a vacation entitlement year, an employer may choose a standard vacation entitlement year or an alternative vacation entitlement year. These terms are defined as:
Standard vacation entitlement year – a recurring 12-month period starting on the date the person is hired. Alternative vacation entitlement year – a recurring 12-month period starting on a date chosen by the employer that is not the date of hire.
