HR Home Forums Community Stat holiday pay vs day off

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  • Conner Lantz
    Keymaster
    Post count: 4836

    Hello, I just became a member yesterday…and already looking for help…thanks in advance. Our Office Manager (who does payroll), sent out the following notice to our Part time staff in December.
    Statutory Pay for Part Time Staff

    “We have discovered that our past process of providing time off in lieu of a statutory holiday for part time staff is incorrect. In most cases, we were providing a day off in lieu of the stat holiday if it was a day you did not work, and provided full pay for the day if it was a day you did work and the office was closed.
    The proper process, according to the Ontario government, is to pay 1/20 of the regular earnings in the previous 20 working days.
    We are making a change as of April 1, 2022.
    Going forward, if a statutory holiday falls on a day that you would normally work and the office is closed, you will not work and you will be paid 1/20th of your earnings for the prior 20 days. In other words, you will be paid a prorated amount for the day based on the percentage of full time you normally work.
    If a statutory holiday falls on a day that you would normally not work and the office is closed, you will be paid 1/20th of your earnings for the prior 20 days.
    We had an employee come back and ask to still take the day instead of the pay. We aren’t sure we want 2 different rules for different people plus we have had significant performance issues with this individual so don’t want to make additional accommodations. She believes that she has the option as per the gov’t site. After more research, we are thoroughly confused.
    First, can we actually take away the replacement day (we gave a lot of notice regarding that change) if we choose (as per the letter above)?
    Second, if we have to give a substitute holiday (which we had been doing to this point), is the amount to pay based on the date of the actual stat or the day they take. (regular pay vs stat holiday pay)?
    I personally have never understood if someone doesn’t normally work on a Monday and there is a stat, why they would get a replacement day…that is an aside but perhaps you can address as well.
    We have staff that are 4 days/week, 3 days/week and one that is a contract PT worker that doesn’t have set hours.
    Lots of questions and I promise I won’t be doing this regularly! 🙂 Thanks and have a good day.
    Kristy McDougall – HR Manager

    Conner Lantz
    Keymaster
    Post count: 4836

    Glenn: Welcome to HRI!! Sorry to keep you waiting but I had to run this by our payroll expert, Alan McEwan. Please call on me any time and I’ll try to provide quicker service the next time.
    From Alan: The Ontario rules are not really all that complex. What you have to focus on are the choices available, and who gets to decide when.
    The different circumstances are:

    1. The stat falls on a day that would ordinarily be worked:
      1. The default is that employees don’t work on that day and are paid their average daily wage as holiday pay.
      2. With the agreement of both the EE and ER, an employee may work on the holiday and then:
    1.          The default is that the employer selects another paid day off, as if that day off were the holiday.
    2.        With the agreement of both the EE and ER, the EE gets holiday pay, plus time and a half for any hours worked on the holiday.
    1. The stat falls on a day that the EE would not ordinarily work:
      1. The default is that the employer selects another day that the EE will be given as a paid holiday.
      2. With the agreement of both the EE and ER,
    1.          The ER may pay the EE the stat holiday pay owing or
    2.        The employee may work the holiday and either:
          1. The default is that the EE is paid straight time for any hours worked and the ER selects another otherwise work day for the EE to be given as a paid day off or
          2. With the agreement of both the EE and ER, the EE gets paid stat holiday pay for the holiday, plus time and a half for any hours worked

    There are other rules that apply to what are described as “continuous operations” and there are also other rules around loosing the entitlements described above, but they don’t relate directly to the questions asked.
    However, four points.
    One, the daily average calculated as the earnings in the prior 4 work weeks divided by 20. For reasons mainly to do with EI reporting, its best if the work week is a calendar week, so the 4 prior work weeks begin on a Sunday and end on a Saturday. Note, this doesn’t mean 20 prior work days, particularly if employees don’t work a fixed schedule.
    Two, this daily average calculation applies to the day actually taken as the holiday. For example, Monday, February 21 is Family Day in Ontario in 2022. If March 7 is substituted for this day, the average daily calculation is based on the 4 work weeks prior to March 7.
    Three, this statement in your notice doesn’t meet the requirements described above: “If a statutory holiday falls on a day that you would normally not work and the office is closed, you will be paid 1/20th of your earnings for the prior 20 days.”. This can only be done with each EE’s agreement.
    Four, if there is no collective agreement, then where it says the EE agreement above, it means each employee individually. In other words, some employees could want the extra cash for a statutory holiday and others want the time off. The only way to avoid this is to make the ER policy something each EE agrees to as part of the terms and conditions of employment, at hire or as a condition of continued employment.

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