Your vacation pay and last cheque aren't favours. They're the law.
In Ontario, vacation pay and your final paycheque are protected by law — and your employer can't hold them hostage or dock them for a till shortage. Here's what you're owed and how to claim it.
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In 30 seconds, here's what's true
- Vacation pay is at least 4% of your gross wages — rising to 6% once you've worked 5 years. You earn it even if you never take the time off, and even one hour of work counts.
- When your job ends, any unpaid vacation pay must be paid out — no matter why you left, and no 'use it or lose it' policy can erase it.
- Your final pay (last wages, overtime, and vacation pay) is due the later of 7 days after your job ends or your next regular payday.
- Your employer can't deduct from your pay for a till shortage, breakage, or faulty work — even with your written consent — if someone else had access to the cash.
- You generally have 2 years to file a free claim for unpaid wages with the Ministry of Labour. There's no longer a dollar cap on what an officer can order.
How the process works
Add up what you're owed
Work out your vacation pay (4% of gross wages, or 6% after 5 years) plus any unpaid regular wages, overtime, and your last cheque. Note the dates you worked and what you were actually paid.
Check the final-pay deadline
Your employer must pay your final wages by the later of 7 days after your job ends or your next regular payday. If that date has passed and you haven't been paid, the wages are overdue.
Check for illegal deductions
Look at your pay stubs. Did they dock you for a cash shortage, a broken item, or a mistake at work? That's not allowed. Only taxes, court orders, or things you authorized in writing (within limits) can be deducted.
Ask your employer in writing first
Send a short, polite message stating exactly what you're owed (vacation pay, final wages) and the legal deadline. Keep a copy. Sometimes this alone gets you paid, and it creates a record.
File a free claim if they still don't pay
File an unpaid-wages claim with the Ministry of Labour online — it's free. An Employment Standards Officer investigates and can order your employer to pay. You generally have 2 years from when the wages were due.
What to do next
- Calculate your vacation pay: 4% of gross wages (6% after 5 years).
- Add up any unpaid regular wages, overtime, and your final cheque.
- Confirm the final-pay deadline: 7 days after the end, or next payday.
- Check your pay stubs for any illegal deductions (shortages, breakage).
- Gather pay stubs, your contract, and records of hours worked.
- Send your employer a written request for what you're owed.
- File a free claim with the Ministry of Labour if unpaid (within 2 years).
- Start a free PLAIN session to total up what you're owed and your options.
Common myths
| Myth | Reality |
|---|---|
| My employer can hold my last cheque until I return equipment. | No. Your final wages are due on the legal deadline. They can't withhold pay, and can't deduct for unreturned items without valid written authorization. |
| Vacation pay is a perk, not something I'm owed. | No. Vacation pay (4%, or 6% after 5 years) is a legal right under the ESA and can't be waived. |
| They can deduct a till shortage from my pay. | No. If anyone else had access to the cash, an employer can't deduct a shortage — even with your written consent. |
| If I quit, I lose my unpaid vacation pay. | No. Accrued vacation pay must be paid out when your job ends, no matter why you left. |
| I have no recourse if my employer won't pay me. | You do. You can file a free claim with the Ministry of Labour, and an officer can order your employer to pay. |
| I waited too long, so I can't claim. | You generally have 2 years from when the wages were due — much longer than the 6 months many people assume. |
| Vacation pay only counts on my base salary. | It's calculated on gross wages, which includes things like overtime and non-discretionary bonuses — not just base pay. |
| There's a cap on how much unpaid pay I can get back. | Not anymore. The old $10,000 limit on what an officer could order was removed — there's no cap on current claims. |
Last reviewed June 2026
Written and reviewed by the founder of PLAIN, checked against primary government and legal sources. How we research these guides
Sources
PLAIN gives legal information, not legal advice. It is not a substitute for a lawyer or paralegal — and we'll point you to free ones. Laws change; we review these pages regularly, but always confirm current rules with the Ministry of Labour or a licensed professional.
Free. No payment to start. We'll point you to official resources too.