I am a small business owner in Ontario with an employee off on maternity leave since June 2004. We regularly pay vacation at 4% of gross earnings. She is requesting vacation pay for the period of June - 31 Dec - are we legally obliged to pay it? How would we determine what the earnings are to base the 4% on?

Thanks,

Shirley

I am a small business owner in Ontario with an employee off on maternity leave since June 2004. We regularly pay vacation at 4% of gross earnings. She is requesting vacation pay for the period of June - 31 Dec - are we legally obliged to pay it? How would we determine what the earnings are to base the 4% on?

Thanks,

Shirley

Hi Shirley.

I'm not sure about what the laws are in Canada, but I do remember working fo an employer that would grant vacation pay on the basis of 4% of the previous calendar year's earnings. Example: I earned $10,000 in 2004. When I receive my vacation pay in 2005, I will get a check for $400.

Also, you may want to check out this website, http://www.gov.on.ca/LAB/english/es/factsheets/fs_preg.html, for information on Pregnancy Leave in Ontario.

Good luck.