Federal vacation entitlement is tiered by an employee’s continuous service with the same employer, under section 184 of the Canada Labour Code:

2 weeks of vacation, at 4% vacation pay, after completing 1 year
3 weeks, at 6% vacation pay, after 5 consecutive years
4 weeks, at 8% vacation pay, after 10 consecutive years

Vacation pay is normally paid within 14 days before the vacation begins, or during or immediately after it where that’s the established practice. If a general holiday falls during an employee’s vacation, the vacation is extended by one day for each such holiday.

On termination, the employer has to pay out vacation pay owing for any completed year of employment, plus the accrued portion for the partial year in progress.

This is a meaningfully richer entitlement than Ontario’s Employment Standards Act, which runs 2 weeks at 4% rising to 3 weeks at 6% after 5 years, with no statutory 4-week tier at 10 years.

This is general information, not legal advice; confirm vacation entitlement and payout calculations for a specific employee before relying on them.

Related notes

Federal Minimum Wage (CLC Part III) — The federal minimum wage resets every April 1, indexed to the prior year's CPI and rounded up to the nearest $0.05, and an employer must pay the higher of the federal rate or the applicable provincial rate where the employee works.

Hours of Work and Overtime (CLC Part III) — Standard federal hours are 8 a day and 40 a week, overtime is at least 1.5 times the regular rate beyond that, and a handful of exemptions and averaging arrangements can change the calculation.

Breaks and Rest Periods (CLC Part III) — Federal employees get an unpaid 30-minute break every 5 consecutive hours of work, at least 8 consecutive hours of rest between work periods, and unpaid medical or nursing breaks where needed.

General (Statutory) Holidays (CLC Part III) — Federal employees get 10 general holidays, one more than Ontario's 9, because the federal list adds the National Day for Truth and Reconciliation and Remembrance Day.

Recordkeeping (CLC Part III) — Federal employers must keep hours and wage records for 36 months, paid-medical-leave records for 3 years, and the required averaging and holiday-substitution notices — recordkeeping failures are a designated AMP violation.

Federal vs. Ontario Jurisdiction: The Employment-Law "Instead Of" Rule — A federally regulated employer follows the Canada Labour Code and related federal statutes in place of Ontario employment law, not on top of it — the federal regime replaces the ESA, OHSA, Human Rights Code, AODA and Pay Equity Act rather than adding to them.

Individual Termination: Notice and Pay in Lieu (CLC Part III, s.230) — Since February 1, 2024, federally regulated employers terminating an employee without just cause owe graduated notice or pay in lieu of 2 to 8 weeks, on top of — not instead of — severance pay.

Severance Pay (CLC Part III, s.235) — A federally regulated employee with 12 months' service who is terminated is owed severance pay — the greater of 2 days' wages per completed year or 5 days' wages — on top of termination notice, at any employer size.