Calculation of the indemnity for the annual leave
Employees on a piece-work basis
The indemnity for the annual leave is calculated in different ways depending on the employee's length of uninterrupted service and the 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 only:
Uninterrupted service | Length of leave | Indemnity |
|---|---|---|
Less than one year | 1 day per month of service | 4 % |
1 year to 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 the following way:
- determine the average weekly wage;
- calculate the indemnity based on the weeks worked and the weeks of absence that do not affect the calculation;
- establish the indemnity based on the wage that would have been paid had there been no absence;
- determine the indemnity that is the lesser of the two.
* The absences that do not affect the computation of the indemnity are as follows: absences by reason of illness, accident, maternity and paternity leave. Consequently, employees who are absent by reason of a lay-off or a leave for protective re-assignment, for example, will see their indemnity reduced.
In the case where there is a termination of employment and no annual leave indemnity was paid during the reference year, you must proceed in two stages:
- do the calculation for the preceding reference period;
- re-do the calculation by adding the indemnity to be paid to the employee during the reference year in progress.
Detailed calculations
| Formulas | Indemnity |
|---|
Step 1 Determine the indemnity
Step 1 Determine the average weekly wage
| annual wage | |
|---|---|
| + gratuities | |
| + commissions | |
| + piece-work | |
| = | |
| wages earned during the reference year | |
| X percentage | |
| / number of weeks worked | |
| = | |
| indemnity | |
| average weekly wage |
Step 2 Determine the average daily wage
| average weekly wage | |
|---|---|
| / number of days worked per week | |
| = | |
| average daily wage |
Step 2 Calculate the indemnity taking the absences into account
| 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 |
Step 3 Calculate the indemnity taking the absences into account
Step 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 |
Step 3 Calculate the indemnity as if there were no absence
| average weekly wage | |
|---|---|
| X (weeks at work - weeks of leave that affect) | |
| X percentage | |
| = | |
| indemnity |
Step 4 Calculate the indemnity as if there were no absence
| average weekly wage | |
|---|---|
| X (weeks at work - weeks of leave that affect) | |
| X percentage | |
| = | |
| indemnity |
Step 4 Determine the indemnity that is the lesser of the two
| indemnity |
|---|
Step 5 Determine the indemnity that is the lesser of the two
| indemnity |
|---|
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 wish to remind you that the calculation formulas are provided for information purposes only.
Notice: The displayed result is not a claim and an investigation made by the Commission could produce a different result.