I had recently asked…and wanted to ask a follow up question….
Initial Question
I had a question regarding vacation pay and stat. I have hourly employees whose pay is as follows. Regarding vacation and stat, would the 6% + 4% stat. holiday apply to the base wage or time and a half? There is nothing further stated on their employment letter other than what is provided below. These are non-unionized employees in Alberta, private sector.
$75/ per hour, paid weekly + $7.50 (6% vac + 4% stat. holiday)
Initial Answer
First, to answer the specific question, if the employer has to base the 6% vacation and 4% stat holiday pay on either the person’s regular wages or on all earnings, including overtime, the answer is on the base rate only, as payable for regular wages.
However, unless the employer fits into one of the exemptions allowed in Alberta, i.e., a construction employee, this method of paying statutory holiday pay does not comply with the Alberta requirements, which are tied to regular earnings in the 4 weeks prior to each holiday. Since the distribution of statutory holidays isn’t even, i.e. Good Friday moves between March and April and there is no holiday in June or August, 4% of regular wages may not equal a days average pay.
Follow up
If we are paying them the 4% stat on base pay and paying it out on each pay cheque do we still need to pay the general holiday pay?
Thank you for your timely response.
