EI legislative requirements for vacation pay

The following rules determine whether vacation pay is insurable under Employment Insurance legislation:

• If the employee IS taking time off: BOTH hours and earnings are insurable and must be allocated to the pay period(s) in which vacation was taken
• If the employee is NOT taking time off: Only the earnings are insurable for EI purposes and must be allocated to the pay period in which they are paid
• If the employee is being terminated: Only the earnings are insurable and are allocated to the last pay period in which the employee had regular wages (the pay period in which the Last Day Worked falls).

Note: The same rules apply to QPIP (Quebec Parental Insurance Plan) if the employee's Province of Employment is Quebec.