When you resign from your job in New Brunswick, your employer is legally required to pay out all your unused vacation pay on your final paycheque. You are entitled to at least 4% of your gross earnings if you worked there for less than eight years, and 6% if you worked there for eight consecutive years or more.
Leaving a job to pursue a new career opportunity is an exciting milestone. Whether you are departing a retail position in Bathurst, saying goodbye to a corporate office in Moncton, or moving on from a local factory in Edmundston, you want a clean and fair exit.
Unfortunately, some employers “forget” or outright refuse to pay out accrued vacation pay when an employee resigns. Under the New Brunswick Employment Standards Act, vacation pay is not a bonus or a gift-it is a mandatory part of your earned wages. Knowing exactly what you are owed and how to claim it ensures you do not leave money on the table when you walk out the door. 📍
Step-by-Step Process in New Brunswick
Claiming your final vacation pay is usually a straightforward administrative process, provided you know your rights. Here is how to ensure your final settlement is accurate.
Step 1: Calculate Your Accrued Entitlement
First, you must understand how vacation pay is earned in New Brunswick. For the first seven years of employment, you earn vacation pay at a rate of 4% of your gross wages. Once you hit your eighth consecutive year with the same company, that rate jumps to 6%.
If your employer did not add a 4% vacation premium to every single weekly paycheque, they were holding that money in an accrual “bank.” You are owed the entire balance of that bank when you leave.
Step 2: Review Your Final Paycheque and ROE
When you resign, your employer must issue your final paycheque by the next regular payday, or within 10 days of your final shift, whichever comes first. 🔍
Look closely at your final pay stub. There should be a specific line item labeled “Vacation Pay Out” or “Accrued Vacation.” Additionally, your Record of Employment (ROE), which they submit to Service Canada, must also accurately reflect this final vacation payout.
Step 3: Send a Written Demand Letter
If the 10 days pass and your final paycheque is missing your vacation money, you need to act. Send a polite, professional email or letter to your former HR department or manager.
State that your final pay was short and remind them that under the Employment Standards Act, all accrued vacation pay must be paid out upon termination of employment. Most employers will realize their mistake and issue a separate cheque immediately.
Step 4: File a Wage Complaint
If your former employer ignores your letter or tries to claim you “forfeited” the money by quitting, it is time to involve the government. 💼
You have exactly 12 months from your final day of work to file an unpaid wage complaint with the New Brunswick Employment Standards Branch. A provincial officer will audit the company’s payroll records and can issue a legally binding order forcing the employer to release your funds.
How Much Does it Cost in New Brunswick?
Securing your vacation pay is a protected worker’s right, and the process is highly accessible.
| Service / Item | Cost / Value (CAD) | Description |
|---|---|---|
| Filing a Government Complaint | Free ($0) | The Employment Standards Branch handles your vacation pay investigation entirely for free. |
| Vacation Pay Value | 4% or 6% of Gross | The legal minimum percentage of your total gross earnings that must be paid out to you. |
| Lawyer Review | $200 – $400 | Optional. If you are an executive with a complex severance package involving vacation pay. |
- No Withholding: Your employer cannot “hold back” your vacation pay to cover the cost of a lost uniform or unreturned keys without your explicit, prior written consent.
- Gross Earnings: Remember that your 4% is calculated on your gross wages before taxes, not your net take-home pay.
How Long Does the Process Take?
The law provides a strict deadline for employers handling final wages.
Your employer is legally obligated to pay your accrued vacation pay on your final paycheque, which must be issued no later than the next regular payday or within 10 days of your departure. If they fail to do this and you must file a complaint with the Employment Standards Branch, a standard government investigation to recover the funds typically takes 2 to 4 months.
Frequently Asked Questions (FAQ)
Can my boss cancel my vacation pay if I quit without giving 2 weeks’ notice?
Absolutely not. Your accrued vacation pay is money you have already earned. Even if you walk out mid-shift with zero notice, it is highly illegal for the employer to withhold or cancel your vacation pay as a punishment.
Do part-time and seasonal workers get vacation pay?
Yes. The New Brunswick Employment Standards Act guarantees vacation pay for almost all employees, regardless of whether you work full-time, part-time, or on a short-term seasonal contract.
What if I was fired? Do I still get my vacation pay?
Yes. Whether you resign voluntarily, get laid off due to a shortage of work, or are fired for cause, your employer must pay out every single cent of your accrued vacation pay on your final cheque.
My pay stub says “vacation paid each cheque.” What does this mean?
Some employers choose to add the 4% vacation pay to every weekly or bi-weekly paycheque rather than banking it. If your pay stubs clearly show this 4% premium was paid out continuously throughout your employment, you will not receive a lump sum when you quit.
Can I carry over my vacation pay to the next year instead?
While you are employed, rules on carrying over vacation time depend on your contract and mutual agreement. However, once your employment permanently ends, all balances must be fully paid out immediately; they cannot be held or deferred.
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