Interpretation Guidelines Manual British Columbia Employment Standards Act and Regulations

EMPLOYMENT STANDARDS ACT - PART 7 - ANNUAL VACATION

ESA Section 60 – Common date for calculating vacation entitlement


Contents:

Summary
Text of Legislation
Policy Interpretation
Related Information


Summary

This section explains the guidelines that an employer must follow if they establish a common date for calculating the annual vacation entitlement of employees. 


Text of Legislation

60. An employer may use a common date for calculating the annual vacation entitlement of all employees under sections 57 and 58, so long as this does not result in a reduction of any employee's rights under those sections.


Policy Interpretation

Due to accounting preferences, some employers may choose to use a common anniversary date for all employees for vacation purposes, rather than use individual employee anniversary dates.

An employee's vacation pay entitlement changes when a company uses a common anniversary date.

Example

  • Keith-Norman begins work on March 1st, 1998. The common anniversary date within the company is September 1st for all employees. As of September 1st, 1998, he is entitled to 4% vacation pay, and a pro-rated amount of vacation time, calculated as follows:

    2 weeks x 6 months divided by 12 months = 1 week

    Keith-Norman must be granted the 1 week of paid vacation prior to September 1, 1999 (within the 12 months following the common anniversary date of September l) in accordance with s.57(2).

    From Sept. 1, 1998 onwards, vacation entitlement for that employee is earned on an annual basis from Sept. 1 to August 31.

    Since the common anniversary date cannot result in a reduction of any employee rights the date for accruing 6% vacation pay is September 1, 2001. Because of the common anniversary date, Keith-Norman becomes entitled to 3 weeks' vacation in the year starting Sept. 1st, 2002.

    Note:
    If there was no common anniversary date, 6% vacation pay would begin accruing as of March 1, 2002. The common anniversary date cannot result in the 6% accrual starting after March 1, 2002. The September 1, 2002 anniversary date cannot be used as the start of 6% vacation pay accrual since it is after March 1, 2002 and would represent a reduction in employee rights and thus be in contravention of s.60.

Employees covered by a collective agreement

Under s.3 of the Act, where a collective agreement contains any provision respecting Annual Vacation, the provisions of this section do not apply. If a collective agreement does not contain any provision respecting annual vacation, Part 7 is deemed by s.3 to be incorporated in the collective agreement as part of its terms.

Under s.3, where there is a collective agreement, the enforcement of matters relating to Part 7 is through the grievance procedure, not through the enforcement provisions of the Act.


Related Information

Related sections of the Act or Regulation

ESA

Other

See Employment Standards Factsheets

Factsheets

Annual Vacation

Collective Agreements and the Employment Standards Act