Vacation Pay Adjustments. At the end of each reference year, the Company shall calculate the monetary difference, if any, between the vacation pay received as per Article 14.06 and the percentage and amount of vacation pay that an employee may receive as per the thresholds established by the Canada Labour Code while using the Code’s definition of wages earned during the year. Where the vacation pay received as per Article 14.06 is less than that provided by the Code, the excess vacation pay thus identified shall be paid to the employee by January 31st of the subsequent reference year. Where the vacation pay received as per Article 14.06 is equal to or greater than that provided by the Code, no such payment shall be made.
Vacation Pay Adjustments. For purposes of vacation pay adjustments only, vacation pay is calculated on an employee's total wages for the calendar year in respect of which the vacation time off is earned. Total wages include base wages, commissions, overtime and incentive pay, but excludes payments pursuant to a benefit plan, income replacement plan and vacation pay previously paid. At the end of the calendar year, adjustments (if any) will be made to ensure that all employees receive vacation pay in accordance with their vacation entitlement; which shall be paid out on or before March 31. Example #1: The base salary of an employee is $25,000 annually. The employee takes ten (10) days of vacation time and is paid vacation pay during that time. The employee also earns incentive pay of $1,250 in respect of the calendar year. The employee has already received four (4) % of base salary ($1,000) as vacation pay during the ten (10) days vacation time off. The vacation pay the employee is entitled to receive for the vacation year is $1,050 (4 % of $26,250). Since the employee has only received $1,000, the employee would receive an additional $50 of vacation pay shortly after the calendar year. Example #2: The base salary of an employee is $35,000 annually. The employee takes fifteen (15) days of vacation time off and is paid vacation pay equivalent to base salary during that time. The employee also earns incentive pay of $2,000 in respect of the calendar year. The employee has already received six (6)% of base salary ($2,100) as vacation pay during the fifteen (15) days vacation time off. In this instance, however, this employee would receive vacation pay on their incentive earnings in accordance with their vacation entitlement of six (6)% equaling $120. (6% of $2,000) thus exceeding the statutory minimum.
