News
April 2020
Holiday Pay and the Wage Subsidy
Many people seem unclear about whether employees can be required to use their annual holidays; and whether the wage subsidy can be allocated to payment of holiday pay.
The answers are:
- Employees may be directed to use their annual holidays by giving 14 days’ notice, provided genuine efforts have first been made to reach mutual agreement on when the holidays will be taken. Note that this applies to “entitled” holidays (i.e. those remaining from the employee’s allocation at their last anniversary date) as opposed to the leave being “accrued” in the period since the last anniversary date.
- The wage subsidy can be used to part pay annual holidays if you made your declaration for the wage subsidy before 4pm on 27 March 2020.
- The wage subsidy cannot be used to part pay annual holidays if you made your declaration after 4pm 27 March 2020.