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What is annual vacation for commission salespeople?

Expert: Howard Levitt

Jennivine asked:

Annual vacation pay for commission salespeople. If they are on straight commission, do I pay them four per cent of their annual gross pay plus their two weeks vacation and their commission during their two weeks holiday time (usually is the same or higher than their four per cent vacation pay).

I read somewhere that vacation pay owing=vacation pay entitlement (which is four per cent), value of vacation taken (this is where I'm not sure, is this amount their annual gross pay/52 x 2, if that's the case, it's the same as four per cent). So, in this case, I only need to pay their earned commission during their vacation time.

Howard Levitt answered:

You pay them four per cent on top of their earnings.

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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