Common use of Eligible Employment Expenses Clause in Contracts

Eligible Employment Expenses. Eligible Employment Expenses are compensation payments made by the Recipient to employees providing an Eligible Service, limited to a pro rata share of the cost of compensation based on time spent providing the Eligible Service as compared to total time employed, as follows: employees’ base salary or hourly pay rate (excluding any commissions, overtime, bonuses or pay for performance component); and the Recipient’s cost of providing employer EI and CPP contributions, medical and health benefits and vacation pay, up to a maximum of 20% of the amount referred to in (a), provided that the number of hours devoted to the Eligible Service reflect the number of hours that would be required to accomplish the same work by an appropriately qualified and experienced individual working reasonably and efficiently; the expenses are evidenced by Timesheets and Proof of Payment; and the Recipient can reasonably demonstrate that the use of employees to provide the Eligible Service is cost effective and any compensation provided to the employee is consistent with compensation provided for similarly situated employees providing like services.