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  • Mindy McManus
    Participant
    Post count: 1
    Forum: Private

    Hello!

    I have a question about vacation accrual during a short term leave due to illness.

    We have an employee who was off sick for almost 9 months. She decided to resign instead of come back to work. When she first went on leave, she used up any vacation time that was accrued, and so she stopped accruing vacation at that time.

    When she resigned, she asked for her vacation to be paid out to her but we let her know that she doesn’t have any vacation pay because it was used up before she took her leave. She actually used more than she accrued but we’re absorbing the cost.

    I tried looking online for information and its very confusing to me. This section suggests that it should be continuous, so the vacation should still be accrued during her leave? Does that mean we owe her vacation pay for the 8 and a half months, even though she did not work during that time?

    https://www2.gov.bc.ca/gov/content/employment-business/employment-standards-advice/employment-standards/forms-resources/igm/esa-part-6-section-56

    Some other info:
    We are a BC based company and we don’t have short term top ups.
    We asked the employee several times during her leave over email to apply for LTD, but she refused.
    She did provide doctors notes whenever asked with return to work dates.

    Let me know if you need any other information!

    Thank you in advance for your help.

    Haley O’Halloran
    Keymaster
    Post count: 198

    Hi there! Firstly, this is a difficult situation to go through as an employer and I am sorry to hear that this has happened.

    You did everything correctly from asking for her to apply for long term disability to asking for return-to-work dates. However, even if she did supply a return-to-work date of 9 months from the beginning of her leave, she still left her job. For employees on unpaid leaves, they will typically not earn vacation pay because they have not earned wages upon which they would earn paid vacation. However, employees on unpaid leaves will still earn vacation time as per their minimum ESA entitlement – it will just be unpaid. So, if she stayed with the company, she would still have UNPAID vacation time to use up – but she is no longer with the company and you owe her nothing but a severance package (with only the applicable monetary amounts, if any) and a farewell!

    -HRInsider Staff

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