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By Neil Curtis
Employers should encourage employees to utilize all paid vacation time in the current vacation year in order to avoid unnecessary expenses and potential liabilities. 

Unused paid vacation routinely becomes a liability for organizations when employees (most commonly, former employees) complain to the Ministry of Labour about not being appropriately compensated for unused vacation. The Ministry of Labour has the authority to ensure employees receive their outstanding vacation pay, and can issue penalties or fines upon organizations for violations of the Employment Standards Act, Ontario. 

More simply put, ‘use it or lose it’ is not a lawful vacation policy in Ontario.

In order to reduce these risks, managers should clearly document when employees go on vacation, and must encourage employees to utilize their earned vacation time every year. The benefits of time away from work should not be underestimated either.

If employees aren’t using their vacation, a policy that permits limited vacation carry-over on an exception basis should be considered. These policies need to be implemented and monitored in order to help reduce potential organizational risks.

As most of our clients currently utilize the calendar year for vacation purposes, now is the time to review outstanding employee vacation balances and encourage employees to use their vacation time before the end of 2015.

3425 Harvester Road, Unit 110 | Burlington, ON L7N 3N1 | TF: 1-844-823-9091

Neil Curtis - NCHR:
905-818-NCHR (6247)
Congratulations to Rob and the entire team at Green Benefits Group for the grand opening of their new offices in Burlington on November 12. It was a fantastic event. We wish you all the success as you begin this new venture.

NCHR would also like to take this opportunity to wish Green Benefits Groups’ clients a very happy holiday season and a new year filled with health, enjoyment, and spectacular success.

Cheers, Neil