Department of Community Services

Payment of Wages

The following questions and answers are for information purposes only. For actual interpretation and application purposes refer to the Employment Standards Act and regulations, or contact an Employment Standards Officer in the Labour Services Office on the 3rd Floor of the Law Centre, 2130-2nd Avenue, Whitehorse, Yukon or call (867) 667-5944 (toll free within the Yukon 1-800-661-0408 extension 5944).

  1. How often must wages be paid?
  2. What wages must the employer pay?
  3. When an employee is terminated when must they be paid?
  4. How should wages be paid?
  5. Must a wage statement be provided?
  6. What deductions can be made from the employee's wages?
  7. What records must the employer maintain?
  8. Where must the records be kept?
  9. What if an employee who is owed wages cannot be located?
  10. What if the employer fails to pay the wages owed?
  11. Why is a 10% administrative fee being added to a certificate issued by the Director?
  12. What protection does an employer have against the Director issuing a certificate without giving the employer an opportunity to pay voluntarily?
  1. How often must wages be paid?
    A pay period cannot exceed 16 days. The employer has 10 days after the end of the pay period to pay all wages owing for the period.

  2. What wages must the employer pay?
    The employer must pay all wages owing to the employee, except vacation pay, each pay period. Wages include overtime, commissions, compensation, and general holiday pay.

  3. When an employee is terminated when must they be paid?
    All wages including vacation pay but not including pay in lieu of notice, must be paid to an employee within 7 calendar days of the last day of work. Pay in lieu of notice can be paid to the employee by instalments of the same amount which would have been paid to the employee had he/she been allowed to work out the notice period.

  4. How should wages be paid?
    Wages must be paid in cash (lawful currency of Canada), by cheque or by deposit in the employee's account in a savings institution designated by the employee.

  5. Must a wage statement be provided?
    A wage statement must be provided at least once a month. The wage statement must set out the pay period, the number of hours being paid, the wage rate, details of deductions, and the amount being received.

  6. What deductions can be made from the employee's wages?
    An employer can make statutory deductions such as income tax, EI, and CPP. An employer cannot withhold wages or make deductions from an employee's wages for set-offs or counterclaims. Employers and employees with questions regarding allowable deductions are encouraged to speak to an Employment Standards Officer.

  7. What records must the employer maintain?
    The employer must keep a record of wages, earned and paid for each employee, daily and weekly hours of work, overtime hours, time off in lieu of overtime, general holidays, annual vacations and the conditions of employment. These records must be kept for all employees including those paid by salary or any other method.

  8. Where must the records be kept?
    Employee records must be kept in the principal place of business in the Yukon Territory, regardless of where the head office is located.

  9. What if an employee who is owed wages cannot be located?
    The employer must fulfil their obligation to the employee by paying the amount owed to the employee to the Director of Employment Standards. The Director deposits the money in trust in the Yukon Employment Standards Suspense Account. If the wages are unclaimed after 3 years, the funds are forfeited to the government.

  10. What if the employer fails to pay the wages owed?
    Labour Services encourages employees to speak to the employer first. The failure may be unintentional and easily remedied. If the problem remains unresolved, the employee is entitled to file a complaint and initiate the wage claim procedure. If wages are found owing and the employer does not voluntarily pay the wages, the Director may issue a Certificate to enforce payment. If a Certificate is issued, an administrative fee in the amount of $100 or 10% of the wages found owing, which ever is greater, will be added to the Certificate.

  11. Why is a 10% administrative fee being added to a certificate issued by the Director?
    It is inappropriate to employ workers if the business cannot pay them. The addition of the 10% or $100 administrative fee, which ever is greater, will encourage employers, in default of their obligation to pay wages, to pay the employee. Employers must not use wages owed to employees as a form of short term financing. The administrative fee creates a consequence for an employer who does not live up to its obligation to pay wages in a timely and proper manner. Enforcement actions taken by the Director can cost the taxpayer thousands of dollars.

  12. What protection does an employer have against the Director issuing a certificate without giving the employer an opportunity to pay voluntarily?
    As is the case with all public servants, the Director has a duty to be fair when exercising legislative powers. The Principles of Natural Justice are clear: for instance, everyone has a right to adequate notice. If this or other principles of natural justice are not adhered to, the Courts could quash the Certificate and order that the process begin again.