Vacation Pay for Pregnancy Leave.

The Option B is actualy I paied to my employee before. The question is that recently there are employees are going to maternity leave in this Jun,2012. Therefore I double-comfirm with the Vacation Pay according to the ESA of Ontario.

On the Page 38, there is a case example which make me so confused,

The case sample is as below:

"Employee must receive at least 2 weeks of vacaiton with 4% vacation pay."

"Tony earns 3 weeks of paid vacation for every year of active service. He is on a parental leave for 8 months of his vacation entitlement year. In other words, he earned 1 week of paid vacation for the vacation entitlement year.

However, his employer must ensure that Tony receives at least the Minimum ESA vacation entitlement of 2 weeks of vacation time and 4% vacation pay. The employer will therefore have to provide Tony with another week of vacation time and ensure the week of vacation pay earned under the contract is not less than 4% of the gross wage he had actually earned in the vacation entitlement year."

What does it mean on above case? Even Tony only earn the 1 week paid vacation for the year of active service, the employer still have to provide  2 weeks vacation according to the ESA Ontario??????

If that is true, how about the Vacation Pay? The employer need to pay 2 weeks vacation pay?

For example, my company provide 2 weeks vacation to employee, She will maturnity leave at Jun, 2012. Her salary is $16,000. How much I need to pay to her???

A: 4%*$16,000=$640

or

B:4%*$16,000*(4/12)=$213.33???

Please Help.

The Option B is actualy I paied to my employee before. The question is that recently there are employees are going to maternity leave in this Jun,2012. Therefore I double-comfirm with the Vacation Pay according to the ESA of Ontario.

On the Page 38, there is a case example which make me so confused,

The case sample is as below:

"Employee must receive at least 2 weeks of vacaiton with 4% vacation pay."

"Tony earns 3 weeks of paid vacation for every year of active service. He is on a parental leave for 8 months of his vacation entitlement year. In other words, he earned 1 week of paid vacation for the vacation entitlement year.

However, his employer must ensure that Tony receives at least the Minimum ESA vacation entitlement of 2 weeks of vacation time and 4% vacation pay. The employer will therefore have to provide Tony with another week of vacation time and ensure the week of vacation pay earned under the contract is not less than 4% of the gross wage he had actually earned in the vacation entitlement year."

What does it mean on above case? Even Tony only earn the 1 week paid vacation for the year of active service, the employer still have to provide 2 weeks vacation according to the ESA Ontario??????

If that is true, how about the Vacation Pay? The employer need to pay 2 weeks vacation pay?

For example, my company provide 2 weeks vacation to employee, She will maturnity leave at Jun, 2012. Her salary is $16,000. How much I need to pay to her???

A: 4%*$16,000=$640

or

B:4%*$16,000*(4/12)=$213.33???

Please Help.

"This is how I interpret the scenario you describe: you must provide your employee with 2 weeks of paid vacation."

This sentence is incorrect. The OP misquoted the heading for that portion of the guide because  I do not think he completely read the entire section on vacation pay . The actual title is (with my underlining of the key and omitted word ) :

"Employee must receive at least 2 weeks of vacation time with 4% vacation pay"

What the ESA's example says is that Tony gets two weeks of vacation time with one week (4%) of vacation pay. In other words, Tony should get two weeks' time off but only one week (4%) is paid. The extra week is to meet ESA's minimum for vacation time .

The section on vacation pay of the online guide for Ontario's ESA can be found at this link:

www.labour.gov.on.ca/english/e...

In the introduction it clearly states that vacation time and vacation pay are treated separate ly. They are based on different criteria. Vacation time depends length of time of the employment relationship including leave time while vacation pay depends on gross pay earned. This section on vacation time and pay should be read completely.

Thank you for the interpretation - that is exactly what I said (in my own words) and illustrated in the example I provided..

I was only commenting on the first sentence of your post where you said " 2 weeks of paid vacation". To me this is the OP's option A, $640. I agree with the rest of your post. I just think that phrase should be "2 weeks of vacation time ". My interpretation is that the OP's employee is provided with 2 weeks time off but is paid only for 3/12 (or 5/12) of the time which is 4% of gross as you calculated.