We have abolished a position and the incumbent that was in this role has been off on CNESST for approximately 1 1/2 years. Obviously they have not taken any vacation during this period (they are hourly paid). Do we owe any vacation monies as we have not accrued as there have been $0 earnings?
Apologies for the delay. From our payroll expert, Alan McEwan:
So, the answer is that there is no liability for vacation pay for the time this employee has been on CNESST.
If vacation pay was not paid out, when the person first went on CNEEST, then of course that is still owing and would now be overdue.
The answer would be different if the person did not qualify for CNESST, i.e., did not have an employment injury within the meaning of the Act respecting industrial accidents and occupational diseases, CQLR c A-3.001.
For example, if the person had merely been ill, then vacation pay would be required, based on average weekly earnings. The Quebec legislation says this average should be calculated on the whole period of employment, but it would be reasonable to base this average on the person’s most recent hourly rate.
Thanks very much