Termination Of Employment Reading Comprehension Worksheet Page 6
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14UNIT FIVE: REVIEW
Employment Standards Curriculum Resource Benchmark 5 - 7
SCENARIO #2: VACATION PAY
An employee, William, has been working as a travel agent for 1
year. He is making $40,000 during this first year, around $800 a
week. He does not receive any vacation pay on his pay cheques
during this year. His employer has told him that he can receive his
vacation, with pay, after he has completed one year of service with
the company.
After he has completed 12 months with the company, his job assignment changes, and
th
William now works half time, and makes $20,000 a year, or $400 a week. In his 15
month of service, he decides to take his two week vacation. He receives vacation pay
based on his current level of employment, which is half time. He receives his usual two
week pay cheque, which is equal to $20,000 times 4%, or $800 as his two week
vacation pay. William is upset, because he believes that the vacation pay should be
based on his previous year’s earnings, on his full time salary of $40,000 a year. He
believes he should receive $40,000 times 4%, or $1,600 for his vacation pay, because
he was working more hours the previous year. However, his employer tells him that his
hours are based on the amount he is currently working. He decides to check this out
with Employment Standards.
What do you think Employment Standards will say about this situation:
(a) The employer is correct. Vacation pay is based on the current year. He gets the
same pay as usual during his time off.
(b) The employee is entitled to 4% of all of their previous year’s earnings as vacation
pay. They can be paid this amount on every pay cheque or when they take their
vacation.
(c) The employee should be happy he is getting any vacation pay at all, as it is up to the
employer to decide how much he gets.
(d) The employer doesn’t have to keep any records of
employment, so if William can’t produce pay slips to show his
previous year’s income, he will not have any chance of
proving the vacation pay he deserves.
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