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Calculating vacation pay

Do you need a vacation from dealing with vacations?

Creating a vacation policy can be a daunting task and much more complicated than it may seem on the surface. While all jurisdictions have minimum standards with respect to vacation entitlement and vacation pay, many details regarding vacation administration is left to the employer. A vacation policy will ensure management and employees alike understand the details of vacation entitlement and its administration.

 

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What’s wrong with this picture? Settlement excludes amount of vacation pay owing

In Ontario, employers owe vacation pay on employee wages. Wages are defined in section 1 of the Employment Standards Act to include “any payment required to be made by an employer to an employee.” Here is where it gets tricky. In Ontario, the employment standards may require two separate types of payments to an employee who is terminated without cause.

 

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