Summer is here, and the excitement is contagious. As the sun shines brighter and the days get longer, employees eagerly await their well-deserved vacation. For HR managers, summer means juggling employee vacation requests while keeping the business running smoothly. It’s a challenge, but with a bit of planning, you can ensure everyone gets their time in the sun. Let’s dive into employee legal entitlements to vacation, how to manage busy schedules fairly, track vacation accrual, and best practices to guarantee everyone gets some downtime.
Understanding employee legal entitlements
First things first, let’s talk about the legalities. In Ontario, the Employment Standards Act (ESA) sets out the minimum vacation entitlements for employees. Employees are entitled to:
- Vacation time: Two weeks of vacation time after each 12-month vacation entitlement year. This increases to three weeks for employees with five or more years of service.
- Vacation pay: 4% of the gross wages earned in the vacation entitlement year, which increases to 6% after five years of service.
Ensure your policies comply with these minimum standards. The reality is most workplaces either allow people to accrue vacation from day 1 rather than waiting a year or simply offer up the weeks on day 1 with the assumption that people will use good judgment to stagger vacation over the first year of employment.
Many workplaces offer 3-4 weeks weeks rather than only the minimum 2 weeks. This is a business and talent retention decision and the number of weeks is ultimately in the employer’s discretion, provided minimum ESA standards are met.
Finally, keep in mind that vacation time and vacation pay are separate entitlements. Employees are always entitled to the minimum vacation time and to receive their vacation pay. This weirdly remains one of the more complex areas of the ESA when trying to figure out entitlements around leaves and terminations, but the secret is to separate out the concepts of “time” and “pay” when doing the assessment.
Managing busy schedules fairly
When summer rolls around, everyone wants to take time off. The key is to manage these requests in a fair and transparent manner. Here are a few strategies to select from:
- First-come, first-served: Implement a first-come, first-served policy. Announce when the vacation request window opens, and encourage employees to submit their requests as early as possible.
- Seniority-based system: For those with a more tenured workforce, consider a seniority-based system where employees with longer service get priority.
- Lottery system: If fairness is a top priority, a lottery system can be an impartial way to allocate vacation time. This can add a fun twist to the process as well.
- Staggered schedules: Ensure that not everyone is away at the same time. Stagger vacations so that there’s always sufficient coverage.
Accruing and tracking vacation
Tracking vacation accrual can be a bit of a headache, but it’s crucial for smooth operations. Here are some best practices:
- Automate the process: Use HR software to automate vacation accrual and tracking. This reduces errors and makes it easy to see who has how much time off remaining.
- Clear policies: Have a clear, written policy on how vacation time is accrued. This should include how much vacation is earned when it can be taken, and any carry-over rules. Include the core components within your employee contracts.
- Regular updates: Provide employees with regular updates on their accrued vacation. This keeps everyone informed and prevents last-minute surprises.
Best practices for ensuring time off
Even with the best systems in place, ensuring that all employees get some time off can be challenging. Here are some tips to make it happen:
- Encourage early planning: Promote the importance of early vacation planning. This helps in balancing workloads and ensuring everyone gets a chance to take a break.
- Mandatory time off: Implement mandatory time off policies if necessary. This ensures that even the most dedicated employees take the rest they need.
- Flexible work arrangements: Consider offering flexible work arrangements, like remote work or compressed workweeks, during the summer. This can provide employees with a sense of break without taking formal vacation days.
- Cross-training: Train employees to cover for each other. Cross-training ensures that work can continue smoothly even when key employees are on vacation.
- Regular check-ins: Hold regular check-ins to review and approve vacation schedules. This keeps everyone on the same page and helps avoid conflicts.
Wrapping up
Summer is a time for relaxation and rejuvenation, especially in our northern climate where there are so few warm weeks of outdoor weather. As HR managers, it’s your role to ensure that employees get the time off they deserve while keeping the business running smoothly. By understanding legal entitlements, managing schedules fairly, tracking vacation accurately, and ensuring everyone gets some downtime, you can create a workplace where everyone feels valued and refreshed.
Remember, a well-rested employee is a productive employee. So, put on your sun hat, grab a cold drink, and start planning those vacations. Happy summer!
By Lisa Stam
SpringLaw is a virtual Canadian boutique law firm, practicing exclusively in the areas of employment, labour and human rights law. We work with a wide range of employers – from global companies with operations in Canada to local owner-operators and start-ups – advising on the wide range of legal issues that arise out of the workplace, particularly workplaces in the tech and creative space. We also provide legal and strategic advice to employees throughout their employment journey. Blog posts are written by Lisa Stam, Hilary Page, Emily Siu, Danielle Murray, Lindsay Koruna, Jessyca Greenwood, Marnie Baizley, Matt Chapman, Evaleen Hellinga and Tiffany Thomas.