Am I still entitled to accrued vacation pay?
From the mailbag…
Dear OfficeTricks,
I’m writing to hopefully obtain some advice. I have worked for this company for 2.5 years and I just gave my notice. Right now the plan is that I will work for 2 more weeks and then they are going to give me 1 week of severance pay after my two weeks. They have not given me a straight answer on whether I can cash out my personal and vacation hours (which total about 2.5 weeks right now). Am I entitled to those accrued hours? I’m hesitant to ask directly because people in the past have just been shown the door when they give notice and if I make waves they may do the same for me…please advise!
Thanks,
Leaving in 2 weeks
Dear Leaving in 2 weeks,
Thank you for your letter. In answering your question, I will assume that you reside in Canada. That being said, within 30 days of your final day your employer is obligated to pay you your 4% (AKA vacation pay). This 4% is calculated from your year-to-date earnings. Unless otherwise stipulated on your contract of employment, your employer is not obligated to compensate you for unused personal time off days.
Normally, if you are resigning voluntarily, your employer is not required to provide any compensation beyond your 4% and final pay cheque. Severance only occurs when the employer initiates the termination of employment. Is it possible that “severance” is being used internally to represent your vacation pay?
As to bringing up the topic internally, I would approach the Payroll Administrator or the Human Resources representative. If your employer does not have these individuals, then do not be shy to speak with your manager or the owner. From the sounds of things, you have navigated the office politics well thus far- you’ve been very cordial and respectful with your resignation, so in politely inquiring if you are entitled to your vacation pay and personal time off, I do not think you would be making waves. The fact that they are keeping you onboard rather than showing you the door as they have done to others supports this.
Thanks for reading,
Aaron


Informative article, Aaron. Hypothetical scenario: I am a salaried employee of my company. If I were to leave my job (with several weeks of unused vacation time), am I losing out?? What’s the best way to come out ahead - is it to use my vacation days and have my last date of employment set after that? Or to request a payout?
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