Vacation pay for employees: Employment lawyer discusses with Canadian Lawyer

Interview Summary

A rise in employee complaints regarding vacation pay and employer obligations has led to an increase in legal action over the past few years. For some businesses, this has resulted in class action lawsuits. Employment lawyers across the country now cite vacation pay discrepancies as a common occurrence.

Travis Carpenter, an Ontario employment lawyer and Associate at Samfiru Tumarkin LLP, joined Jessica Mach with Canadian Lawyer Magazine to discuss employer expectations regarding vacation pay.

Interview Notes

• Problematic employment contracts: Carpenter commented that employer violations of vacation pay are frequently outlined in employment agreements and often, do not take into consideration an employee’s gross wages. “Say that you’ve got six weeks of vacation included in your agreement – that’s equivalent to 12 percent vacation pay. Technically, you should be paid 12 percent vacation pay on all of your wages,” said Carpenter.
• Simple mistakes made by employers: Many employees and employers are unaware of what vacation pay encompasses. “I feel like there is a possibility that some employers are doing this maliciously, but I also think there’s a possibility that there’s a lot of employers that just don’t know about this,” Carpenter commented. “When people are thinking wages, they’re not thinking, ‘Oh, I have to pay you… vacation pay on commission.”
• Avoiding legal action and penalties: Carpenter reiterated the importance of employers understanding their full obligations. “It’s not a hard thing to abide by,” Carpenter stated. “Just know that if something is classified as wages, then you’re going to have to provide vacation pay on it.”

Related Resources

For further insights and discussions related to employee rights, explore the following resources:

• Vacation pay for employees in British Columbia