It pays to know the law for pay statements.
A Canadian company had to pay more than $6000 extra in vacation pay due to a simple omission on an employee’s pay statements. The Manitoba Labour Board ruled that the company failed to clearly itemize the vacation pay on the employee’s pay statements and that they lacked a clearly written policy on vacation pay. The omission opened the door for the employee to win his claim that he had never received any vacation pay. In reality, as testified to by numerous other employees, all employees were aware that vacation pay was included on every cheque.
Each province and territory has legislation mandating specific information on an employee's pay statement. Employees must get pay statements summarizing the information required in that province. In addition to the legally-required information, IBEX strongly suggests that vacation pay be broken out on each pay statement for hourly employees, whether it is accrued or paid. Further, an agreement should be signed by both hourly and salaried employees to confirm their understanding of the company's vacation pay policy.
The devil is clearly in the details. Let IBEX take care of them for you. Call Terry Harrison, head of Pasture Development, to find out more about the benefits of IBEX and the evolution of payroll.
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