Calculation of the indemnity for the annual leave
Employee at the general rate
The annual leave indemnity is calculated in different ways according to the employee's length of uninterrupted service and his periods of absence during the reference year.
In the case where there was no absence, the indemnity is calculated according to the length of uninterrupted service on
Uninterrupted service | Length of leave | Indemnity |
|---|---|---|
Less than one year | 1 day per month of service | 4 % |
1 year to less than 5 years | 2 uninterrupted weeks | 4 % |
5 years and over | 3 uninterrupted weeks | 6 % |
In the case where there was an absence* during the reference year, the indemnity is calculated in 4 steps:
- identification of the type(s) of absence
- establishment of the average daily or weekly wages
- calculation of the indemnity based on the weeks worked and the weeks of absence that do not affect the calculation of the annual leave
- calculation of the indemnity based on the wages that would have been paid had there been no absence.
The annual leave indemnity corresponds to the smallest amount obtained in Step 3 or 4.
indemnity are as follows:
- absence by reason of sickness other than professional illness
- absence due to an accident other than the CSST
- absence following a criminal offence.
Other absences:
- maternity leave (maximum 18 protected weeks)
- paternity leave (maximum 5 protected weeks).
Consequently, an employee who is absent by reason of a lay-off or a preventive leave, for example, will see his indemnity reduced.
In the case where there is a termination of employment and where the annual leave indemnity was not paid during the reference year, you will have to proceed in 2 steps:
- do the calculation for the previous reference period
- redo the calculation by adding the indemnity to be paid to the wages earned during the current reference year.
Example:
Date when employment began: May 1, 2007
Date when employment ended: October 26, 2008
Previous reference period: May 1, 2007 to April 30, 2008
Current reference period: May 1, 2008 to October 26, 2008
This tool is not intended for an employee subject to the Regulation respecting minimum labour conditions in certain sectors of the clothing industry. This tool only takes into account complete weeks of absence. In addition, certain categories of employees are excluded from the application of the division dealing with the annual leave (see section 77 of the Act).
For more information, you can get in touch with the Service des renseignements at the Commission.
Detailed calculation
| Formulas | Indemnity |
|---|
Étape 1 Determine the indemnity
Étape 2 Establishment of the average daily or weekly wages
| annual wage | |
|---|---|
| + gratuities | |
| + commissions | |
| + piece-work | |
| - wages during the progressive return - sickness, accident other than CSST or criminal offence | |
| - wages during the progressive return CSST | |
| = | |
| wages earned during the reference year | |
| X percentage | |
| / number of weeks worked | |
| = | |
| indemnity | |
| average weekly wage |
| average weekly wage | |
|---|---|
| / number of days worked per week | |
| = | |
| average daily wage |
Étape 3 Calculation of the indemnity based on the weeks worked and the weeks of absence that do not affect the calculation
| average weekly wage | |
|---|---|
| X number of weeks of leave stipulated in the Act | |
| X (weeks at work - weeks of leave that affect) | |
| / number of weeks at work | / 52 |
| = | |
| indemnity |
Étape 3 Calculation of the indemnity based on the weeks worked and the weeks of absence that do not affect the calculation
Étape 3 Calculate the indemnity
| average daily wage | |
|---|---|
| X number of days of leave stipulated in the Act (1 day per full month) | |
| X (weeks at work - weeks of leave that affect) | |
| / number of weeks at work | |
| = | |
| indemnity |
Étape 4 Calculation of the indemnity based on the wages that would have been paid had there been no absence
| average weekly wage | |
|---|---|
| X (weeks at work - weeks of leave that affect) | |
| X percentage | |
| = | |
| indemnity |
Étape 4 Calculation of the indemnity based on the wages that would have been paid had there been no absence
| average weekly wage | |
|---|---|
| X (weeks at work - weeks of leave that affect) | |
| X percentage | |
| = | |
| indemnity |
| Annual leave indemnity* | |
|---|---|
| * The annual leave indemnity corresponds to the lowest amount obtained in Step 3 or 4. However, this indemnity must not be less than 4% of the earnings of the reference year. | |
| Annual leave indemnity* | |
|---|---|
| * The annual leave indemnity corresponds to the lowest amount obtained in Step 3 or 4. However, this indemnity must not be less than 4% of the earnings of the reference year. | |
The displayed result represents the amount of the indemnity calculated according to the information entered. If something does not seem right, we invite you to contact the Service des renseignements at the Commission. We remind you that the calculation formulas are provided for information purposes only.
Important note : The displayed result is not a claim. An investigation made by the Commission des normes du travail could lead to a different result.