Our regular readers may remember our previous posts on upcoming changes to the Canada Labour Code. Next week, some of these changes will be coming into effect.
On March 16, 2015:
- A new “holiday pay” formula will apply to federally regulated employers. Under the new formula, holiday pay will be calculated as 1/20th of the employee’s wages (excluding overtime pay) that were earned in the four weeks preceding the week in which the holiday occurred. This formula will apply to all employees who have been employed for at least 30 days.
- If an employee is paid, at least in part, on commission and has at least 12 weeks of continuous employment, holiday pay will be calculated as 1/60th of the wages earned in the 12 weeks preceding the week of the holiday.
- Employees who work in continuous operations will not be entitled to holiday pay if they are called in and do not report to work or if they have made themselves unavailable for work. If the employees are required to work on a holiday, they are entitled to be paid holiday pay plus 1.5 times their regular wage rate, but can be given holiday pay at some other time or take a day off and be paid holiday pay for that day.
- Employers must pay all employees with less than 30 days of employment at least 1.5 times their regular rate, if they work on the holiday. However, if the employee works in a continuous operation, the employer is only required to pay his or her regular wage rate.