Resignations in ontario

[Conner Lantz]

#80196

Employee provided two week notice on May 20 2021 with June 2 2021 as his last day. His manager accepted the resignation and advised him that he could leave on May 20 2021 provided he had finished all tasks on his desk. Employee had 6.25 vacation days available. Would he be paid for May 20 2021 then the 6.25 vacation days and then the following days up to June 2 2021 as paid days?

[Conner Lantz]

#80195

Apologize for the delay. I’ve been out the past 2 working days. Here’s our payroll expert’s reply:
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Yes, effectively if an employee gives notice, and the employer decides not to have him continue working, the employer must pay the employee the wages that would have been earned during the notice given by the employee.
The employer has the option of two separate ways to process this situation:

1. Treat June 2 as the last day employed, with all the dollars owing given as either vacation or regular wages.
2. Treat May 20 as the last day employed, with regular wages for that day, 6.25 vacation days plus wages in lieu of notice for each work day between May 21 and June 2.

Under 2, there are fewer insurable hours as wages in lieu of notice have no insurable hours. Two is the more costly option, as the vacation days would not reduce the wages in lieu of notice.
However, under 2, the employment is severed immediately.
Don’t forget to pay vacation pay on either the wages in lieu of notice or anything treated as regular wages.

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