Knowledge Share by Adam Noble, PayTech Project Manager – Canada
Vacationable Earnings requirements are frequently being overlooked and often missed within large and small Canadian organisations.
Vacationable Earnings are earnings on which vacation pay is calculated, pursuant to employment/labour standards. These earnings typically include regular earnings, overtime, shift premium pay, public holiday pay, commissions and bonuses related to hours of work, production or efficiency.
In the past, I personally have helped a number of businesses correct their errors. Not only Vacationable Earnings, but also to ensure compliance with the amount of Vacation Time that the Employee should have received.
In one instance, a leading US based organisation was expanding into the Canadian market and had engaged a team of PayTech Consultants to help with the acquisition of new businesses and onboarding onto an existing Canadian payroll platform. After our initial review of the existing payrolls in play, we were able to advise the client of their risk of unpaid vacation. By breaking out the variances by Provincial Rulings we helped the new owner recover significant costs from the seller of the original business.
This made for a happy PayTech client because we were able to reduce risk, reduce costs, and improved the morale of the workforce after they received the correction in pay. Once again, PayTech’s Trusted Advisors were there to be the Payroll Hero.
The article below goes into some issues that have occurred around this topic.
CBC: Canadian banks, insurance firms owe $1.2B in employee vacation pay, class actions allege