Interested in more careers-related content? Check out our new weekly Work Life newsletter. Sent every Monday afternoon.
THE QUESTION
Our company is gearing up to launch a new product soon and they’ve just implemented a six-month, no-vacation blackout period. This seems unreasonable and unfair, especially because it’s going to be over the summer when people’s kids are off school.
I’ve heard that people who have already requested vacation time that was approved during that period have to cancel their trips. Is a company allowed to impose such a long blackout period? And are they allowed to take back approved vacations?
THE FIRST ANSWER
Johanna Cline, associate lawyer, Pink Larkin, Halifax
Yes, in this case, your employer can impose a vacation “blackout” period, even one that lasts several months.
Employment standards legislation entitles employees to vacation time but gives employers broad discretion over when that time is taken. This includes restricting vacations during busy operational periods, such as a product launch.
That said, your employer cannot use the blackout period to effectively deny your earned vacation altogether. Employers must still ensure employees can take their earned vacation within the timeframe required by employment standards legislation.
If you have specific concerns, such as caregiving responsibilities, it may be worth speaking to management. Even where a blackout period is permitted, your employer may still have flexibility to accommodate individual circumstances.
The more difficult issue is the cancellation of an already approved vacation. Where employees relied on prior approval and incurred non-refundable expenses, they may be entitled to reimbursement. In Saskatchewan and Newfoundland and Labrador, legislation expressly requires employers to compensate employees for certain expenses arising from a cancelled or postponed vacation.
Outside those provinces, employees should still review their employer’s vacation policies for rules on cancellation, notice and reimbursement. If an employer departs from its own policy, this may provide a basis to seek compensation or reconsideration. In addition to reimbursement or rescheduling, there may be room for more creative solutions such as shortening rather than cancelling the vacation or arranging temporary remote work while travelling.
THE SECOND ANSWER
Alia Besharat, associate, Littler LLP, Toronto
In short, yes, your company can impose a no-vacation blackout. In some cases, it can even revoke previously approved vacation, but there are limits.
Rules vary between provinces. Under Ontario’s Employment Standards Act, 2000 (ESA), employees are entitled to minimum vacation time but not to choose when that vacation is taken. The ESA allows employers to schedule vacations to meet business needs. That means a vacation blackout, even one lasting several months and covering the summer, is generally legal, provided employees are still able to take their full vacation entitlement within the required timeframe. While such a policy may feel unfair, the law gives employers broad discretion over vacation timing.
Generally speaking, employees who have worked for an employer for at least 12 consecutive months are entitled to two weeks of vacation per year, increasing to three weeks after five vacation entitlement years. These are the statutory minimums; some employment contracts or workplace policies may provide more generous benefits.
Further, employers are permitted to revoke pre-approved vacation in response to legitimate business needs. Genuine staffing shortages, unexpected operational demands or critical deadlines might call for an employer to revoke a pre-approved vacation.
What the ESA does not provide is the right for employees to choose when vacation is taken. Employers may schedule vacation time to meet business needs, including implementing blackout periods, provided employees ultimately receive their full vacation entitlement.
Have a question for our experts? Send an e-mail to NineToFive@globeandmail.com with ‘Nine to Five’ in the subject line. E-mails without the correct subject line may not be answered.