To: Susan Fraser, Human Resources Manager

From: Account payable supervisor

Date: April 23, 2018

Re: Vacation leave and pay

The organization named as organic food supplier is planning to implement a company-wide policy with
respect to vacation leave and vacation pay that provides the same benefits to all employees, in these
jurisdictions like Manitoba, Prince Edward Island, Yukon. There are four specific items: 1. Time served in
the organization for getting entitled to vacation and vacation pay 2. Period of vacation 3. % Of salary to
be paid as vacation pay 3. Timeline for paying vacation pay to employees.

MANITOBA: If the employee has been employed for less than 5 years then the employee must receive
at least two weeks of vacation after each of the first four years of employment. And after 5 years of
employment, it must be 3 weeks. In Manitoba employee are entitle to receive 4. % Of vacation pay after
10 month and 6. % after 5 consecutive years.

REFERENCE: https://www.gov.mb.ca/labour/standards/doc,vacations,factsheet.html

PRINCE EDWARD ISLAND: For Prince Edward Island the laws is that if employee has been employed for
less than 8 years then the employee must receive at least two weeks of vacation and after 8 years it
must be 3 weeks. Employee must receive 4. % After 4 months and increases up to 6. % After 8 years in
Prince Edward Island.

REFERENCE: PCL Laboure standards-Employment Standards Chapter (5-62)

YUKON: For Yukon the employees are entitled for 2 weeks of vacation after 12 months. For all the 3
provinces the employees are entitled to receive 4. % Of the gross wage as vacation pay. The vacation
earning varies from jurisdiction to jurisdiction. In Yukon employee are earned 4. % Vacation just after 14
convective days of employment.

REFERENCE: https://www.community.gov.yk.ca/pdf/_faq.pdf

How employees get best benefits

 Accrued time off – additional sick days, PTO or vacation time that employees accumulate based
on the length of time they have worked at a company.
 Rollover vacation days – unused vacation time from one calendar year that gets added onto next
year’s allotment - may count as part of accrued time off, but it depends on the employer.
 Many businesses have sales people who consistently bring money in, it can be consider offering
a vacation policy with a higher incentive to that group of people who are driving your business.
2nd

Good afternoon, Ms. Page.

About the recent discussion around the company-wide leave and vacation pay policy changes to
implement uniform benefits for all employees across every jurisdiction, I have identified four items that
will have to be addressed in the policy to ensure compliance with the employment/labor standers in
each:

1. Type of earning – Earnings that are considered ‘vacationable’ to calculate vacation pay.
2. Length pf annual vacation – Paid vacation time allotted for specific year
3. Entitlement period – The time frame in which earned vacation must be used.
4. Vacation Pay – A percentage of gross vacationable earnings.

Based on current employment/labor standards across Manitoba, Prince Edward Island, and Yukon,
please find my recommendation to ensure that minimum standards are either met or exceeded in each
jurisdiction.

1. Types of earning

Current discrepancy: these 4 types of earnings are variable across each jurisdiction:

 Overtime pays
 Pay instead of notice of termination
 Board and lodging taxable benefit
 Domestic or sexual violence leave pay

Recommendation: Include all of the above types of earning in vacation pay calculation for each
jurisdiction.

2. Length pf annual vacation

Current discrepancy:

 Manitoba – 2 weeks from the first day employment; 3 weeks after 5 years consecutive years of
employment.
 Prince Edward Island – 2 weeks after every 12 months of employment; 3 weeks after 8
consecutive years of employment.
 Yukon – 2 weeks after every 12 months of employment.
Recommendation: Provide consistency in both length of annual vacation and point annual vacation
commences for employees. 2 weeks of annual vacation after 12 months of employment; 3 weeks after
consecutive years of service.

3. Entitlement period

Current discrepancy:

 Manitoba 10 months
 Prince Edward Island 4 months
 Yukon 10 months

Recommendation: Enable flexibility for employees by implementing a 10-months entitlement period for
all jurisdiction.

4. Vacation Pay

Current discrepancy:

 Manitoba – 4% of their gross wages until 5 years of employment and 6% after 5 years.
 Prince Edward Island – 4% of their gross wages until 8 years of employment and 6% after 8
years.
 Yukon – 4% of their gross wages after 14 consecutive days of employment.

Recommendation: Employees who are entitled to 2 weeks of vacation receive 4% of vacation pay and
employees with 3 weeks' vacation receive 6%.

The above-outline recommendations for the organization policy will be part of a collective agreement
where some jurisdiction will be given more than what they receive today while others will have to cut
back. However, this overall policy would be beneficial to both the employees and the company in the
future. The company would gently benefit from a homogenous policy that will encourage a healthy
employment culture and improve cross-jurisdiction resourcing increasing administrative costs.

If you require any further information regarding this matter, please feel free to reach out.

Thanks & regards,

Payroll Manager

For references: PCL Pages 5-61 to 5-64

https://www.gov.mb.ca/labour/standards/doc,vacation,factsheet.html

https://www.princeedwardisland.ca/en/information/economic-growth-tourism-and-culture/vacation-
and-vacation-pay

http://yukon.ca/en/employment/learn-about-annual-vacation-pay-and-vacation-time