Vacation Pay: New Brunswick's Law

In New Brunswick, employers are required to provide annual vacation leave to all employees, and the amount of vacation pay depends on the length of their service. Employees with less than eight years of service are entitled to at least one day off per month worked or at least two weeks of vacation per year. Those with eight or more years of service are entitled to at least 1.25 days off per month worked or at least three weeks of vacation per year. Vacation pay is calculated as a percentage of gross wages, with employees receiving 4% if they have worked for less than eight years, and 6% if they have worked for eight years or more.

Annual leave entitlement

The New Brunswick Labour law is regulated by the Employment Standards Act of 1982, which governs the terms and conditions of employment, including working hours, holidays, rest periods, wages, overtime, leave, and termination of employment.

According to the Act, employers are obliged to provide annual vacation leave to all employees, and the amount of vacation pay depends on the length of service. Employees are entitled to receive their vacation pay before their vacation starts or upon termination of employment if they have not yet taken their vacation.

Length of Service: Less than 8 years

Annual Leave: At least 1 day per month worked or at least 2 weeks of vacation per year.

Vacation Pay: 4% of gross wages.

Length of Service: 8 years or more

Annual Leave: At least 1.25 days per month worked or at least 3 weeks of vacation per year.

Vacation Pay: 6% of gross wages.

Employees become eligible for annual leave after completing 12 months of service. Employers must allow employees to take their vacation within four months of earning it. Additionally, employees are entitled to take their vacation days consecutively.

It is important to note that employers are generally free to design their own vacation accrual system. However, employees must be allowed to take their earned vacation days, and the "use-it-or-lose-it" policy is illegal in New Brunswick.

Annual leave pay

Entitlement

Employees who have worked for their employer for less than eight years are entitled to the lesser of the following:

• At least one day per month worked
• At least two weeks of vacation per vacation year

Employees who have worked for their employer for eight years or more are entitled to the lesser of the following:

• At least 1.25 days for each month worked
• At least three weeks of vacation per vacation year

Employees are entitled to take their annual leave once they have completed one year of service. Employers must allow employees to take their vacation no later than four months after they have earned it.

Calculation

Termination

If an employee is terminated or quits before taking their annual leave, they are entitled to receive their entire vacation pay when their employment ends. This payment must be included in the employee's final paycheck.

Annual leave timing

In New Brunswick, employers are obliged to provide annual vacation leave to all employees, and the amount of vacation pay given depends on the length of service. Employees are entitled to take a vacation once they have completed 1 year of service with the same employer. The employer must allow employees to take their vacation no later than 4 months after they have earned the vacation time.

For employees who have been with the company for less than 8 years, they are entitled to the lesser of the following two options for vacation leave:

• At least 1 day per month worked, or
• At least 2 weeks of vacation per vacation year.

For employees who have been with the company for more than 8 years, they are entitled to the lesser of the following two options for vacation leave:

• At least 1.25 days for each month worked, or
• At least 3 weeks of vacation per vacation year.

In terms of vacation pay, employees with less than 8 years of service are entitled to receive 4% of their gross wages (before deductions). Employees with 8 or more years of service are entitled to receive 6% of their gross wages (before deductions). In both cases, employees must receive all their accumulated vacation pay at least one day before their vacation begins.

The "use-it-or-lose-it" policy, which requires employees to use a certain amount of vacation time within a certain timeframe or risk losing it, is illegal in New Brunswick. This means that employees are not forced to use their vacation days within a specific period and can choose to accumulate them.

Leave accrual systems

In New Brunswick, employers are obliged to provide annual vacation leave to all their employees. The amount of vacation pay given depends on how long the employee has worked for the company. Employees are entitled to take a vacation once they have completed one year of service with the same employer. The employer must allow employees to take their vacation no later than four months after they have earned their vacation time.

Employers in New Brunswick are generally free to design their own vacation accrual system, although it is usually based on the pay period (payroll cycle). The "use-it-or-lose-it" policy is illegal in New Brunswick, meaning that employees are not required to use a certain amount of vacation time within a certain timeframe.

• Accrual rates: Employers should decide how much leave they want their employees to accrue in a year and choose an accrual rate (yearly, monthly, bimonthly, daily, or based on hours worked).
• Annual or yearly accruals: Similar to annual leave, all the allotted time off is provided at the beginning of the year or on a work anniversary. When an employee takes time off, it is deducted from the total number of hours they can accrue. Employees can carry forward any unused time off before the following year.
• Monthly accruals: This option is ideal for part-time employees who work variable hours, as their vacation time accurately reflects the hours they worked.
• User interface: Leave accrual systems should have an intuitive user interface that allows employees to submit and track their leave requests easily.
• Notifications and alerts: The system should send notifications to employees and supervisors about pending and approved leave requests. Alerts can also be set up to notify employees when they are approaching their leave limits.
• Reporting and analytics: Supervisors and administrators should have access to reports and analytics that provide detailed information about employees' leave usage and remaining balances.
• Integration with other systems: The leave accrual system should be able to integrate with other HR systems, such as payroll and time tracking software, to ensure accurate and up-to-date information.
• Security and compliance: The system should comply with data privacy regulations and ensure that employee information is secure.

Use-it-or-lose-it policy

In New Brunswick, employers are required to provide their employees with annual vacation leave. The amount of vacation pay given to each employee depends on their length of service with the company. Employees are entitled to take a vacation once they have completed one year of service with the same employer.

The "use-it-or-lose-it" vacation policy is illegal in New Brunswick. This type of policy requires employees to use a certain amount of vacation time within a specific timeframe, or risk losing it. However, in most other places, this policy is legal and even popular.

The "use-it-or-lose-it" policy has both advantages and disadvantages.

Advantages

• Employees are encouraged to take regular, planned vacations throughout the year, promoting a healthy work-life balance and preventing burnout.
• It helps employers manage vacation time and avoid unplanned absences due to stockpiled vacation days.
• It can lead to increased productivity and improved employee morale as workers take advantage of their vacation time to rest and recharge.
• It provides a sense of urgency for employees to use their vacation days effectively and can help them avoid working too much.
• It can be an opportunity for team-building if staff take their vacations together.

Disadvantages

• Employees may feel pressured to use their vacation time before it's gone and may not feel they have enough time for the vacation they'd like.
• It can be difficult for employees to coordinate vacation time with colleagues, family, and friends.
• If employees don't take their allotted vacation time, it may result in decreased morale and productivity, and they may not be able to take a break when needed.
• Employers may face the challenge of finding temporary replacements for vacationing employees.

Overall, while the "use-it-or-lose-it" policy is illegal in New Brunswick, it is a popular way for employers in other places to manage vacation time. It offers benefits such as improved work-life balance for employees and reduced costs for employers, but it's important to also consider the potential drawbacks, such as increased stress and difficulty coordinating time off.

Frequently asked questions