Vacation pay vs vacation time
Two separate entitlements that often go together. Vacation time is how many weeks off you’re owed (2 weeks at 4 %, 3 weeks at 6 %). Vacation pay is the dollars you’re owed (4 % or 6 % of gross earnings during the entitlement year). Some employers pay you for the time off; some pay each pay period and you take unpaid time. Either is legal as long as the dollars match the statutory minimum.
Federal vs provincial
Most workers are covered by their province’s ESA. Workers in federally regulated industries (banks, air transport, marine, broadcasting, telecom, interprovincial trucking, the federal public service) are covered by the federal Canada Labour Code. The federal regime is more generous (8 % at 10 years vs 6 % in most provinces) and applies regardless of which province the worker lives in.
Better-than-minimum policies
Many employers offer 3 weeks (6 %) from day one, or 4 weeks (8 %) at 5 years instead of 10. The ESA sets a floor, not a ceiling. If your contract says you get more than the statutory minimum, your contract governs. If your contract says less, the ESA overrides.