If you haven’t heard already, there are new vacation entitlements for all employees in Ontario including in dental offices (effective January 1, 2018)
You probably know that all employees in Ontario were formerly guaranteed at least 2 weeks of vacation time each year, as well as vacation pay at the rate of 4% of wages earned. That minimum amount for new employees has not changed.
But, as of January 1, 2018, employees who have 5 or more years of service with their employer will be entitled to 3 weeks of vacation time, and vacation pay at the rate of 6% of wages earned.
The key to note here is that employees must already have completed 5 years of service in order to receive this new standard benefit. Think of it as a 5-year award.
So, starting in an employee’s 6th year of work, they will receive at least 3 weeks of vacation.
Remember: vacation time is earned. Brand new employees are not automatically entitled to paid vacation in the first year of work. But, many dentists choose to provide this to new employees as an extra benefit of working for that office. Similarly, you may decide to provide an employee with 3 weeks of vacation before this new minimum standard comes into effect.
Should you do so, your office should ensure that proper employment contracts are drafted to reflect this additional benefit.