Add Comment Question: I am seeking your advice regarding a recent change in the calculation of my vacation pay by my employer. I have been with my current employer for 36 years and have accrued six weeks of vacation pay, which is calculated at 12% of my gross earnings. Recently, my employer informed me that they are no longer calculating vacation pay based on my gross salary but are now only considering my base salary. They have stated that they do not need to calculate my vacation pay based on my previous method. I also want to mention that I regularly work significant overtime, which affects my gross earnings. Given my long tenure and the significant change in how my vacation and statutory holiday pay is calculated, I am concerned about the legality of this change and my rights as an employee. I would appreciate your guidance on the following points: Can my employer unilaterally change the method of calculating vacation pay after such a long period? What local labor laws may apply to my situation regarding vacation pay calculations? What steps should I take if I believe this change is unfair or violates my rights? Answer: Hello, Vacation pay must be calculated on your total wages, as that term is defined in the Ontario Employment Standards Act, 2000 (ESA). Overtime pay is included in the definition of wages so you should earn vacation pay on your overtime pay as well. Paying you vacation pay based on your base salary alone would be a violation of the ESA. You can make a complaint to the Ministry of Labour to have them investigate your concern should your employer continue to insist that your vacation pay be calculated on your base salary alone. Regards, Lluc Cerda Lawyer Your Comment * Your Email * Your Name * Your City Note, your name, city and email is not displayed on the website. It is used to notify you that we have approved your comment.