Taking a break: Vacation time and your employees

Summertime brings with it sunshine, BBQs, swimming, outdoor concerts and for many employees, time off work to enjoy the warmer weather with family and friends. If you are an entrepreneur with employees, this time of year may mean extra effort in order to manage your employees' time off. In Ontario, employees are entitled to nine public holidays and two weeks of vacation time upon completion of every 12-month vacation entitlement year. If an employee does not use their vacation time, you will be required to pay them for the time instead.

You can get help calculating your employees' holiday or vacation pay by visiting the Ontario Ministry of Labour's website and using their free online tools.

You should also create a vacation policy for your business and ensure that you and your employees keep track of vacation time earned, used or paid out. A clear and detailed vacation policy will help your employees understand:

• Who is eligible for vacation
• How employees earn vacation time
• When an employee can carryover (or bank) vacation time
• What happens to any unused time when an employee leaves the business

Keeping track of your employees' vacation requests can be a challenge, but it is critical to have an accurate and detailed schedule to ensure that your business always has enough people to perform day-to-day business activities without interruption. Taking the time to plan ahead and keep track as you go can also free up more of your time, allowing you to enjoy more of the summer season yourself.

Have other questions with regards to your responsibilities as an employer? Visit the Managing your employees section of the Canada Business Network website and find all the information you need!