An HR Vibe Guide to Vacation Pay and Scheduling in Quebec

Vacation is not just a benefit, it’s a legal right under Québec labour law. Employees who take regular time off are more productive, more engaged, and less likely to experience burnout. Yet in many small businesses, vacation planning is reactive, inconsistent, or worse, ignored until it becomes a problem.

At HR Vibe, we work with Québec businesses to transform their time-off processes from an afterthought into a core part of a positive work culture.

In Québec, vacation is earned over the course of a reference year and is intended to be taken in the following year. As per the CNESST, the reference year runs from May 1 to April 30. During this period, employees are generally only permitted to take vacation time or receive vacation pay that was accrued in the previous reference year. While employers have the option to define a different 12-month reference period, this must be clearly outlined in a written policy and communicated to all employees.

Under Quebec’s Act Respecting Labour Standards, employees are entitled to vacation pay and time off based on their length of uninterrupted service:

• Employees with less than one year of uninterrupted service are entitled to:
  One day of vacation per full month worked, up to a maximum of two weeks.
  Their vacation pay is calculated at 4% of gross wages earned during the reference year.
• Employees with one year to less than three years of service are entitled to:
  Two consecutive weeks of vacation.
  Their vacation pay is calculated at 4% of gross wages earned during the reference year.
• Employees with three or more years of service are entitled to:
  Three consecutive weeks of vacation.
  Their vacation pay is calculated to 6% of gross wages earned during the reference year.
  
   

Vacation pay must be based on gross earnings, including regular wages, overtime, bonuses, and commissions, and it can be paid:

• In a lump sum before the start of the vacation 
• According to the regular pay schedule covering the vacation period.
• For seasonal or intermittent activities (e.g., tourism, agriculture), employers may include vacation pay in each paycheck.
  
   

Employers must also pay out any unused vacation at the end of employment.

Many SMEs miscalculate these amounts, particularly for employees with variable schedules, part-time hours, or non-salaried compensation and in the calculation of vacation days verses earned accrual. In some cases, they may underpay, while in others they may overpay without realizing it.

While Québec’s labour standards set the legal minimum for vacation entitlements, they don’t necessarily reflect what’s competitive in today’s job market. Many employers choose to offer more generous and flexible vacation policies to attract and retain talent and influence higher engagement and productivity. When employees receive a higher vacation accrual than the minimum standards, employers must honor that accrual—especially in situations requiring indemnity payouts, such as termination or resignation.

In Quebec, while employees earn the right to vacation, employers have the authority to determine when it is taken, provided they meet certain conditions:

• Employers must consult employees about their preferred dates and try to accommodate them.
• At least two consecutive weeks must be given to employees entitled to two or more weeks of vacation, unless the employee agrees to split it.
• The vacation must be taken within 12 months following the end of the reference year in which it was earned.
• Employees continue to accrue vacation on certain leaves including maternity, paternity and sick leave, however they must return to work, and the employment relationship must be maintained to be entitled to this accrual. Employers do not accrue vacations on leaves such as parental leave or sabbaticals even if the employment relationship is maintained.  
• Employees who are entitled to 2 weeks of paid vacation may request 1 additional week of unpaid leave per year, and employers must grant it. However, employees cannot require that this extra week be taken immediately following their paid vacation. Also, the unpaid week cannot be split into multiple parts unless the employer agrees.
• Employees entitled to 3 weeks or more of vacation per year may also request additional unpaid time off, but in this case, the employer is not obligated to approve the request and may refuse it at their discretion.
• An employer may determine the dates of an employee’s vacation, but must provide advance notice in writing of a minimum of 4 weeks before the vacation start date. 
• If the employee requests it, the employer may allow them to take their vacation, in full or in part, during the reference year. The portion of the vacation pay to be paid in advance is determined by mutual agreement and may be based on either the wages earned since the start of the reference year or the anticipated earnings for the entire year. In cases where vacation is anticipated but not fully accrued, it is advisable for the employer to have the employee sign a document confirming that they are borrowing paid vacation time and may be required to repay it or adjust future vacation entitlements accordingly. 

A common misconception is that employees can demand specific vacation dates. In fact, the employer is responsible for approving and coordinating time off to ensure business continuity, while respecting employees’ rights to their earned time.

Legal minimums are just the start. Building a comprehensive vacation policy is essential for maintaining operational stability, promoting employee well-being, and ensuring compliance with CNESST standards in Québec. A clear policy helps reduce last-minute disruptions, supports fair and transparent time-off practices, and encourages a healthy work-life balance that can boost morale and retention.

To avoid conflict and ensure coverage, businesses should build vacation planning into their operational routines. Here’s how:

Some scenarios that often challenge SME leaders:

• An employee wants to take their vacation before they’ve accrued it. What are your options?
• Two employees request the same peak week off. How do you decide fairly?
• You’ve missed the 12-month vacation deadline. What now?
• A part-time employee’s earnings fluctuate. How do you calculate their vacation pay accurately?
• Someone quits before taking vacation. How do you handle the payout?

These are not just administrative headaches. Mishandling them can lead to employee dissatisfaction or non-compliance with CNESST regulations.

At HR Vibe, we work with business owners and managers to transform vacation management from a reactive chore into a proactive, strategic HR practice. Here’s how:

When vacation scheduling is handled poorly, it affects more than payroll — it can disrupt productivity, hurt morale, and expose your business to legal risk. On the other hand, when your policies are clear, your systems are sound, and your employees feel heard, vacation season becomes an opportunity to recharge your team without compromising your business.

Ready to simplify summer vacation planning?

Contact HR Vibe for expert guidance tailored to your business — because peace of mind should be part of everyone’s time off.