Can vacation pay be accrued during the notice period?

Further, in Moody v. Telus at para. 47, Mr. Justice Cullen determined that the plaintiff was entitled to vacation pay in addition to salary accrued during the notice period, because the evidence established that the plaintiff intended to “bank” or accrue the time to extend his term of employment and thereby lengthen the service by which the amount of his benefit was determined. Accordingly, where the loss asserted is the loss of an opportunity to extend the term of employment and related entitlements, vacation pay may be compensable during the notice period.

Absent such special circumstances, Mr. Justice Melnick, in Urton v. SRI Homes et al, 2005 BCSC 1019 at para. 34 (varied on other grounds 2007 BCCA 372) confirmed that the accrual of vacation pay during the notice period would constitute “double indemnity” and should not be awarded.