Hi….we have an employee starting maternity leave in mid-July. If that employee’s contract states that they are entitled to 10 days of paid vacation per year (starting January 1st and their contract does not state that they are entitled to 4% vacation pay), is that employee entitled to take 10 days of paid vacation prior to their leave starting? Does it matter if they have not accrued the full 10 days for the calendar year?
From our payroll expert, Alan McEwan.
It all depends on what the actual terms and conditions of the vacation pay are in the employment contract.
If there is just the simple promise of 10 paid vacation days per year, without any qualification around completing the year first or for active vesus inactive service, then the person is entitled to those 10 paid days.
Obviously, there should be some consideration to changing the policy (and the contract of employment) to take into account inactive and unpaid service.
However, if the vacation time is 10 days, the minimum vacation pay required would be 4% of vacationable earnings.