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If, however, the contract stipulates your employee will earn two weeks of paid vacation on an annual basis, then she will earn two weeks of paid vacation while away on a one year maternity/parental leave, regardless of the hours worked that year. Then you will owe both vacation time and pay in that instance.
Vacation Pay: Itâs important to distinguish between vacation time and vacation pay. An employee becomes entitled to vacation time off after 1 year of service but accrues vacation pay from the very first day of employment.Each jurisdiction has different rules on whether vacation pay can be paid in lieu of time off.acation Pay: Itâs important to distinguish between vacation time and vacation pay. An employee becomes entitled to vacation time off after 1 year of service but accrues vacation pay from the very first day of employment. Each jurisdiction has different rules on whether vacation pay can be paid in lieu of time off.