Vacations & Vacation Pay Policy

Vacation entitlement is granted with two purposes in mind. Firstly, a period of rest and relaxation benefits the employee both physically and mentally without loss of income; and secondly, vacation entitlement is a management tool for recognizing the longevity of service years of the employee.

 

Vacation Policy

It is the policy of Arts Management Systems that Employees are entitled to vacation with pay based on their job level, position and years of service.

 

General

  • Arts Management Systems hereinafter called “AMS”.

 

Revision History

  • January 2010

Entitlement

The entitlement to vacations and vacation pay are intended to ensure that employees annually have a rest from work without loss of income.

The basic entitlement to annual vacations is as follows:

  1. The employee must be a full time employee;
  2. The employee must have completed at least 6 months of continuous employment.
  3. Vacation can be used after the first year of accumulating time off, unless by prior management permission.
Service Vacation Time Earning Rate
12 months 10 work days 1 1/4 days
5 years 15 work days 1 2/3 days
10 years 20 work days 2 1/12 days
15 years 25 work days 2 1/2 days
20 years 30 work days  

The above entitlements will apply in all cases unless superseded by contracted agreements at point of hire. All such contracted agreements must be reviewed with the Human Resources Department prior to commitment with the new employee.

  • An employee, who has started employment prior to the 15th of the month, will receive full vacation credit for that month.
  • Employees are eligible to take their vacation effective immediately the month it has been allocated to them.
  • Vacations must be taken sometime in the 12 months after the employee becomes entitled to the vacation.
  • For a new employee within their first year of continuous employment, the employee may borrow 1 week (5 days) from their 1st year ahead.
  • Employees may carry over 1 week (5 days) of their current allowed vacation time into the next period, for up to 3 months. All other vacation must be taken in the year earned (unless specific management approval is given) and if not taken, is forfeit. The company believes vacation should be taken each year and does not allow hoarding.
  • Vacations will be given in one unbroken period unless the employee requests to take their vacations in shorter periods. This is permissible so long as those periods are at least one day long.
  • If a mutually acceptable time for the employee's vacation cannot be found, the employer can decide on the time. However, the employee must receive at least two weeks notice in writing of the start date of their vacation. The employee must take their vacation at that time.

    Vacation Pay Calculation

    Monthly Salary Employees

    • Monthly salaried employees receive their regular rate of pay while they are on vacation. It is not additional funds.

    Hourly Wage and Casual Employees

    • All other employees receive vacation pay as a percentage of wages (four percent) for the year for which vacation was given.
    • "Wages" includes any previously paid vacation pay, but does not include overtime earnings, general holiday pay, pay in lieu of a notice of termination or an unearned bonus.
    • "Year for which vacation is given" refers to the year immediately before the employee becomes entitled to the vacation.

    What is not included in the calculation of vacation pay?

    • Overtime pay, general holiday pay and termination pay.
    • Unearned bonuses.
    • Expenses or allowances.
    • Tips or other gratuities.

    Timeliness of Vacation Pay Payment

    Employees have a choice on how they receive payment for money that would be due during vacation

    1. Paid during the regular payday. This is the default.
    2. Payment of the salary that would be due just prior to beginning of vacation. This option may be used upon employee request.

    Vacation Pay Disbursement

    • Vacation pay may be disbursed on the regular payday, during the vacation time period, or immediately following a vacation, but only where it would not be practical to make the payment earlier. In the case of Alberta, employees can instead request to receive their vacation pay at least one day before starting a vacation.
    • If vacation pay has not previously been paid out and the employee requests it, it must be paid in a lump sum at least one day before the employee's vacation. In any event if prior payment is not practical , the vacation pay must be given to the employee no later than the next regular payday after the vacation begins.
    • Where an annual vacation is fragmented, only a portion of vacation pay must be paid before each period of vacation. This also applies if an employee does not take vacation in complete weeks.
    • If the employee chooses to receive their vacation pay payment in a lump sum prior to commencement of their vacation period, the employee must provide the employer (at minimum) 1 months notice before the starting date of the vacation period.
    • Employees who do not request vacation payment prior to commencement of their vacation period or fail to meet the advance notice requirement to this request, vacation pay will be disbursed on the regular payday.

    Scheduling of Vacations

    In all Canadian jurisdictions, it is the employer's prerogative to determine when each employee may take an annual vacation, within certain limits laid down by law. First, a vacation must be granted within a specified period after the date on which the employee becomes entitled to it. Second, it is required that employers provide a minimum at least two weeks of notice to their employees before they start their vacation. It is recommended vacation be scheduled at least 4 months in advance to ensure availability within the scheduling calendar. Obviously, such notice is not normally necessary where an employer and an employee agree on a mutually satisfactory vacation starting date.

    • AMS encourages employees to take minimum vacations at 5 days to receive full benefit from the time away from work.
    • Although discouraged, with prior consent under extenuating circumstances, employees may be able to take 1/2 day vacations.
    • AMS will help their employees by allowing them sufficient flexibility to:
      1.    a) break their leave up into shorter periods take vacation at the same time as their spouse.
      2.    b) take annual leave during the summer when children are at home.
      3.    c) This measure enables employees to divide up vacation time in a way that best suits them.
    • AMS has the final say when vacation can be taken.

    Division of Vacation Time

    • In Alberta, employers must allow their employees to take their annual vacation with pay in one unbroken period.
    • Nevertheless, vacations may sometimes be divided into shorter periods. The decision on whether or not to split a vacation is left at the employee’s discretion, although obtaining the employer’s consent is a prerequisite. The employer may refuse such a request.

    Waiver of Vacation

    • Waiver of Vacation specifically allow employees to forego their annual vacation in exchange for pay in lieu. In general, this request will be refused unless the employee can provide sufficient information to the employer that the proper rest and relaxation that benefits the employee both physically and mentally will be maintained to avoid any adverse effects to the employee’s ability to perform his/her responsibilities.
    • If the employee has more then 2 weeks vacation, the unused portion over 2 weeks could be considered for waiver as long as the employee has previously taken or plans on taking the 2 weeks vacation.
    • In all cases, the decision to waive a vacation must be agreed to by both the employee concerned and the employer.

    Postponement of Vacation

    The postponement of an annual vacation for a specified year of employment is expressly permitted, subject to certain conditions:

    • A written agreement to postpone a vacation must be signed by the employee affected and the employer to be effective.
    • If an employer postpones or cancels an employee’s previously scheduled annual vacation, the employer will reimburse the employee affected any vacation-related expenses that cannot be recovered through other means (e.g., non-refundable deposits, penalties and pre-paid expenses).

    Statutory Holidays

    There are 9 statutory holidays that are observed by AMS per Alberta guidelines and 1 personal floater day, for a total of 10 days. November 11th (Remembrance Day) is a standard holiday and at the employee's option, this may be deferred to another day such as Boxing Day.

    If a holiday falls on a non-workday then another day will be observed as the holiday - usually the preceding Friday or the following Monday. The Labour Standards Act leaves it up to the employer to decide.

    The following days are observed as Statutory Holidays:

    • New Year's Day (January 1)
      •    New Year's Day is the closest thing to being the world's only truly global public holiday, often celebrated with fireworks at the stroke of midnight as the new year starts.
    • Family Day (February - approx 3rd Monday)
      •    Family Day was originally created to give people time to spend with their families but it also provides a day off between New Years Day and Good Friday as they are approximately three months apart. Common Family Day activities include skating, playing hockey, snowboarding/skiing and going to various winter festivals.
    • Good Friday (April - approx 3rd Friday)
      •    Good Friday marks the death of Jesus Christ according to the Christian religion. It is a fundamental part of Christianity along with the resurrection of Jesus on Easter Monday. Many agree that this is a more important holiday than Christmas because it is the ultimate proof that Jesus is the son of God beacuse he came back from death.
    • Victoria Day (May - approx 3rd Monday)
      •    Victoria Day is a Canadian statutory holiday celebrated on the Monday preceding May 24. It honours Queen Victoria's birthday.
    • Canada Day (July 1)
      •    Canada Day celebrates the birthday of Canada. On July 1, 1867 Canada became a new federation with its own constution by signing the Constitution Act (formerly known as the British North America Act).
      •    Canada Day is usually observed on July 1st but if that's a Sunday then Monday will be given as a day off. If it's a Saturday then normally Friday becomes the day off.
    • Labour Day (September - 1st Monday)
      •    This holiday officially celebrates workers and the labour union movement.
    • Thanksgiving (October - 2nd Monday)
      •    The original idea is to give thanks for the past harvest season but for many Canadian families the tradition has shifted and the focus is now to eat a large turkey dinner and get together with family. Apple cider and pumpkins are a must for any traditional thanksgiving celebration as well as turkey stuffing and pumpking pie. The first time Thanksgiving was held in Canada was in 1872 to celebrate the recovery of the Prince of Wales from a serious illness. After 1879 celebrations were held every year but not always in October - it used to be observed around Armistice Day in November.
    • Remembrance Day (November 11 - this may be deferred at the employee's option)
      •    On remembrance day members of the armed forces (soldiers, sailors and airmen) are commemorated. The other common name for this day is Armistice Day which marks the date and time when armies stopped fighting World War I. on November 11th at 11am in 1918 (the eleventh hour of the eleventh day of the eleventh month). Some 100,000 Canadian soldiers died in the First and Second World Wars.
    • Christmas Day (December 25)
      •    For centuries, Christian writers accepted that Christmas was the actual date on which Jesus was born.

    Other days that are not official Statutory Holidays, but could be observed by using your personal floater day:

    • Easter Monday (April - the Monday following Easter Sunday)
      •    Easter Monday is celebrated as a holiday in some largely Christian cultures, especially Roman Catholic and Eastern Orthodox cultures. It is customarily a day for visiting family and friends.
    • Civic Holiday (August - 1st Monday)
      •    The Civic Holiday is celebrated on the first Monday of August. The Civic Holiday is commonly referred to as the August Long Weekend. It is probably the busiest day on highways as tens of thousands of families go camping, to cottages etc this weekend.
    • Boxing Day (December 26)
      •    The tradition has long included giving money and other gifts to those who were needy and in service positions. The European tradition has been dated to the Middle Ages, but the exact origin is unknown and there are some claims that it goes back to the late Roman/early Christian era; metal boxes placed outside churches were used to collect special offerings tied to the Feast of Saint Stephen.
      •    Boxing Day is primarily known as a shopping holiday, much like the day after Thanksgiving in the United States. It is a time where shops have sales, often with dramatic price decreases. For many merchants, Boxing Day has become the day of the year with the greatest revenue.

    General Questions

    Upon employee request, can vacation with pay be given prior to completing a full 12 months of employment?

    Yes, if the employer agrees. Typically, at least 6 months of service must have been completed.


    What if a general holiday falls within an employee's annual vacation?

    If eligible for the general holiday, the employee is entitled to take off either the first scheduled working day after their vacation, or in agreement with the employer, another day before the next annual vacation (that would otherwise have been a work day for the employee).


    If an employee has been paid vacation pay but not given vacation time, can they choose not to take vacation time?

    No. Employers must give, and employees must take, the vacation time to which they are entitled. Where employees have already been paid vacation pay, this time off will be without pay.


    If employment is terminated before the employee completes 12 months of employment, what vacation pay is owing?

    Four per cent of the employee's wages earned during the period of employment.


    If employment is terminated after the employee completes 12 months of employment, what vacation pay is owing?

    • The unpaid vacation entitlements for the previous year; plus
    • the unpaid vacation entitlements for the current year pro-rated (calculation based on the number of days for the last date of employment, divided by 365 days).

    • When is vacation pay to be paid to an employee whose employment is terminated?

      • Where proper termination notice is given, or notice is required to be given by the employer, vacation pay must be paid within three days of termination.
      • Where neither the employer nor employee is required to give termination notice, vacation pay must be paid within 10 days.
      • If an employee quits without giving proper termination notice, the employer must pay vacation pay to the employee within 10 days after the date on which the notice would have expired if it had been given.