Canadian Payroll Reporter

CPR_JUNE_2013v7.qxp:Canadian Employer.qxd 13-05-27 11:50 AM Page 12 JUNE 2013 Waiving vacation entitlement CANADIAN PAYROLL REPORTER www.payroll-reporter.com Continued from page 11 they agree to postpone the employee's vacation (or a part of it) for a specified year. 3)An employee may apply on his or her own to the Labour Standards Officer for permission to have the vacation (or a part of it) postponed to the following year. In the application, the employee must explain why this is necessary. Ontario: Under the Employment Standards Act, an employee may waive his or her entitlement to a vacation (or part of it) if the employer agrees and the director of Employment Standards approves it. Even if the employee waives the right to a vacation, the employer is still obligated to pay the employee vacation pay. Employees taking a leave of absence covered under the act may postpone their vacation until the leave ends or until a later date (if their employer agrees). This applies even if the employee has an employment contract that prohibits or restricts the deferring of vacations. Prince Edward Island: The Employment Standards Act does not allow full-time employees to waive their entitlement to a vacation. Employees who work less than 90 per cent of the regular working hours in any continuous 12-month period may opt not to take vacation, but be paid vacation pay. Employees who wish to do this must advise their employer in writing before the end of the 12-month period. Employers must pay the vacation pay to them no later than one ■ CORRECTION Assessment rates In the Ask an Expert feature in the May 2013 issue of Canadian Payroll Reporter, the wrong information was provided regarding reporting vacation pay on a ROE. Employers do not need to report the pay in Block 17A, Vacation Pay. 12 month after the end of the 12-month period. Quebec: Under the Act respecting labour standards, vacation entitlement may not be waived, unless there is a special provision in a collective agreement or decree allowing it. Employees who work for a business that closes for two weeks for the annual vacation, the employee is entitled to three weeks' vacation. These employees may request that their employer waive their third week of vacation and pay them the vacation pay owing. Employees taking a leave of absence under the act may request that their employer postpone their vacation to the following year. Employers are not required to do so. If the employer does not allow the request, the employer must immediately pay the employee the vacation pay owing to the employee. Saskatchewan: The Labour Standards Act allows employers and employees to enter into a written agreement to waive the employee's vacation because of a shortage of labour. The agreement must be filed with the Director of Labour Standards. The employer must still pay the employee vacation pay within 12 months of the employee becoming entitled to the vacation. Yukon: Under the Employment Standards Act, employers and employees may enter into written agreements whereby an employee may elect not to take an annual vacation. However, the employer must still pay the employee the vacation pay he or she is owed within 10 months of the employee becoming entitled to the vacation. Employees who are taking a reservist leave may postpone their vacation until their leave is over. Annie Chong is manager of the payroll consulting group at Carswell, a Thomson Reuters business, which publishes the Canadian Payroll Manual and operates the Carswell Payroll Hotline. Published 12 times a year by Thomson Reuters Canada Ltd. 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