Every employer must establish one or more pay periods for the calculation of wages and overtime pay due to an employee

• A pay period must not be longer than 1 month

Wages, overtime pay and holiday pay earned in a pay period must be paid by an employer not later than 10 consecutive days after the end of the pay period.

If an employee is terminated, the employer may either:

• pay 10 consecutive days after the pay period

• 31 consecutive days after the last day of the employee’s employment

  This must be in the following forms (in Canadian currency):

  • in cash or by cheque, bill of exchange or order to pay, payable on demand, drawn on a financial institution, or

  • if the employer so chooses, by direct deposit to the employee's account in an authorized financial institution of the employee's choice

    An employer must not deduct from employee wages except in cases:

    • ordered by a judge or court,

    • a recovery of an overpayment of earnings paid to the employee resulting from a payroll calculation error,

    • a recovery of vacation pay paid to the employee in advance of the employee is entitled to it,

    • authorized to be deducted by a collective agreement that is binding on the employee personally authorized in writing by the employee to be deducted

AB ESC PT.2 s.7-13