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Vacation and Public Holiday Pay

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Advice on employee entitlement for Vacation and Public Holidays

Advice on employee entitlement for Vacation and Public Holidays

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  • 1. Kathryn Kissinger HR Services 2013Vacation and Public Holiday Pay
  • 2. Vacation and Public Holiday PayThe “hottest topic of the summer”! I get asked forthis information a lot, so today’s blog contains andclarifies the information from the EmploymentStandards Act, to help you to know the true rulessurrounding this confusing topic.First we will talk about Vacation, then PublicHolidays.Kathryn Kissinger HR Services 2013
  • 3. Special Rule ToolWhile most employees and employers in Ontario are covered by theESA, there are some employees to whom it does not apply atall, there are some employees who are covered by the ESAgenerally but who are exempted from certain parts of it, nd thereare some other employees who are covered by special rules thatchange how certain parts of the ESA apply.The Special Rule Tool can tell you about employees who are notcovered by the Public Holiday provisions of the ESA or who arecovered by special rules that change how employees are paid forpublic holidays.Kathryn Kissinger HR Services 2013
  • 4. Special Rule Tool Please note—this tool is not law but a quick referencethat is provided for convenience. For the law, you mustrefer to the ESA itself and to the regulations madeunder it. To use the Tool, select one of the industry icons—thenchoose the job category that best describes the job Jobs to which no exemptions or special rules apply arenot mentioned.Kathryn Kissinger HR Services 2013
  • 5. What Categories are Special? EMS, Healthcare, Health Professionals Manufacturing, Construction, Mining Hospitality Services, Sales Transportation Agriculture, Growing, Breeding, Keeping, and Fishing Household, Landscaping and Residential Building Services Government, White Collar, Professionals Other: Student Employees, Funeral Directors andEmbalmers, Television and Film, Temp Employees, andHomeworkersKathryn Kissinger HR Services 2013
  • 6. Vacation Pay and Vacation TimeUnder Employment Standards legislation inOntario, Vacation Time and Vacation Pay are actuallytwo separate entities.In most cases, employees take paid vacation time offwork and the two are blended together.There are some occupations that are exempt from theVacation with Pay provision of the ESA. Thesepersons ARE, however, eligible for vacation time off, asper the ESA.Most professional occupations, such as lawyers, landsurveyors, dentists, etc. are in this category.Kathryn Kissinger HR Services 2013
  • 7. Vacation Pay and Vacation TimeYou must check with the relevant EmploymentStandards Act for the province/territory where theemployee is paid to confirm the amount ofvacation time and the amount of vacation pay towhich the employee is entitled. In Ontario, employees are entitled to a minimumof 2 weeks of vacation time, and a minimum4% of earned wages as vacation pay, with noprovision for increases.Kathryn Kissinger HR Services 2013
  • 8. Public Holidays DefinedThe ESA defines a “Public Holiday” as any of thefollowing;1. New Years Day 2. Good Friday3. Victoria Day 4. Canada Day5. Labour Day 6. Thanksgiving Day7. Christmas Day 8. December 269. “Any day prescribed as a Public Holiday”, which meanseither Family Day (3rd Monday in February), EasterMonday, or Civic Holiday in August.Kathryn Kissinger HR Services 2013
  • 9. Public Holidays DefinedAs long as the employee(s) receive a minimum 9 publicholidays off, it doesn’t matter which of the days they receive.To clarify:You have to give the first 8 holidays listed in the ESA. Youand the employee(s) agree that they will take the Civic Holidayin August as the ninth holiday that they will receive.Because the Ontario Government passed Family Day, you andthe employees can choose to substitute Family Day for theCivic Holiday.Kathryn Kissinger HR Services 2013
  • 10. Public Holiday PayAn employee’s public holiday pay for any public holidayshall be equal to, the total amount of regular wages earned andvacation pay payable to the employee in the fourwork weeks before the work week in which thepublic holiday occurred, divided by 20.An employer who is required to pay premium pay to anemployee for working a public holiday shall pay theemployee at least one and one half (1.5) times his or herregular rate.Kathryn Kissinger HR Services 2013
  • 11. Public Holiday PayIf the Public holiday is ordinarily a working day for anemployee and the employee is not on vacation that day, theemployer has to give the employee the day off work and payhim or her public holiday pay for that day.If the Public holiday is not ordinarily a working day oris a day on which the employee is on vacation, the employershall substitute another day that would ordinarily be aworking day for the employee to take off work and forwhich he or she shall be paid public holiday pay as if thesubstitute day were a public holiday.Kathryn Kissinger HR Services 2013
  • 12. Public Holiday PayAgreements to work on Public Holidays An employee and employer may agree that theemployee will work on a public holiday that may ormay not fall on a day that would ordinarily be aworking day for that employee or on a day on whichthe employee is on vacation. In some cases, employees are required to work onpublic holidays, such as retail or emergencypersonnel.Kathryn Kissinger HR Services 2013
  • 13. Public Holiday Pay (cont.)Employee’s entitlement The employer pays the employee’s wages at his or herregular rate for the hours worked on the public holidayand substitutes another day that would ordinarily be aworking day for the employee to take off work, and forwhich he or she shall be paid public holiday pay as if thesubstitute day were a public holiday;or If the employee and the employer agree, the employershall pay the employee public holiday pay for the day pluspremium pay for each hour worked on that day.Kathryn Kissinger HR Services 2013
  • 14. Public Holiday PayException The employee has no entitlement to premiums if he or shefails, without reasonable cause, to work all of his or her lastregularly scheduled day of work before the public holiday or allof his or her first regularly scheduled day of work after the publicholiday.Restriction (this applies in all cases where substitute days offare given)A day that is substituted for a public holiday shall be, a day that is no more than three months after the public holiday;or if the employee and the employer agree, a day that is no morethan 12 months after the public holiday.Kathryn Kissinger HR Services 2013
  • 15. Public Holiday PayWhat happens if the employee doesn’t work theirregular shift before or after the Public Holiday? If the employee performs all of the work that he orshe agreed to perform on the public holiday butfails, without reasonable cause, to work all of his orher last regularly scheduled day of work before orall of his or her first regularly scheduled day ofwork after the public holiday, the employer shallgive the employee premium pay for each hourworked on the public holiday but the employeehas no other entitlement.Kathryn Kissinger HR Services 2013
  • 16. Public Holiday PayWhat happens if the employee shows up, but failsto do any work on the Public Holiday? If the employee, without reasonablecause, performs none of the work that he or sheagreed to perform on the public holiday, theemployee has no entitlement. If the employee, with reasonablecause, performs none of the work that he or sheagreed to perform on the public holiday, theemployer shall give the employee a substitute dayoff work or, if an agreement was made under thepremium pay clause, public holiday pay for thepublic holiday.Kathryn Kissinger HR Services 2013
  • 17. Public Holiday Pay If the employee performs some of the work that heor she agreed to perform on the public holiday butfails, with reasonable cause, to perform all of it, theemployer shall give the employee wages at his or herregular rate for the hours worked on the publicholiday and a substitute day off work; or, if an agreement was made under the premiumpay clause, public holiday pay for the public holidayplus premium pay for each hour worked on thepublic holiday.Kathryn Kissinger HR Services 2013
  • 18. Public Holiday PayEmployees on leave or lay-off If a public holiday falls on a day that would notordinarily be a working day for an employee andthe employee is on a leave of absence undersection 46 or 48 of the ESA (only pregnancy orparental leave) or is on layoff on that day, theemployee is entitled to public holiday pay for theday but has no other entitlement with respect tothe public holiday.Kathryn Kissinger HR Services 2013
  • 19. Public Holiday PayPremium pay hours are not overtime hours If an employee receives premium pay for workingon a public holiday, the hours worked are not takeninto consideration in calculating overtime pay towhich the employee may be entitled.If employment ends If the employment of an employee ends before aday that has been substituted for a publicholiday, the employer still has to pay the employeepublic holiday pay for that day.Kathryn Kissinger HR Services 2013
  • 20. For More Information: Kathryn Kissinger HR Services:info@kissingerhrservices.com or 519-758-1952 Employment Standards Actwww.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_ Special Rule Tool:www.labour.gov.on.ca/english/es/tools/srt/index.phpKathryn Kissinger HR Services 2013

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