The issue of holiday pay entitlement is a constant source of arbitral dispute. Entitlement cases usually fall into two categories: cases that concern qualification criteria and cases centered on the employment relationship post qualification.

The qualification cases generally examine whether the employee met the statutory and collective agreement requirements leading to holiday pay entitlement. The employment relationship cases arise where an employee is on layoff or is absent from the workplace for some other reason.

The case law seems to suggest that some form of subsisting employment relationship is required to support a claim for holiday pay. Often, employee’s on layoff are entitled to holiday pay. Arbitrator’s generally will extend the concept of “employment relationship” before denying an employee a collective agreement benefit. Having said that, just how far does “employment relationship” go and when does an employee become a former employee for the purpose of denying entitlement? For instance, should an employee who has qualified for holiday pay receive that benefit if they retire before the holiday in question?

What’s your take on holiday pay? I invite your comment.