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Sickness and Vacation Pay

Expert: Howard Levitt

Rita asked:

Our contract of employment (Ontario) allow vacation time and vacation pay earned through service. If an employee finish 15 weeks EI benefit due to sickness and not be able to work for another six months. Will she still earn credits toward the vacation time and vacation pay while on the 6 months no pay leave period.

Howard Levitt answered:

The person earns vacation time, but they do not earn any vacation pay because their vacation pay is only calculated for 4 percent of wages they earn. So since they are not earning any wages, they do not earn any vacation pay.

About the author

Howard Levitt, Counsel to the national law firm Lang Michener. He is author of, The Law of Dismissal in Canada, The Quick Reference Guide to Employment Law and an upcoming book on Canadian Hiring Law. He is Editor In Chief of the Dismissal & Employmnet Law Digest.

Phone: (416) 307-4059
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