Common use of Payment for Vacation Clause in Contracts

Payment for Vacation. Payment for annual vacation for full time employees will be based upon one of two (2) calculations, whichever yields the greater amount: a) the straight-time wage rate of the employees regular job at the time the vacation is taken is multiplied by the number of hours in the period of vacation; or b) the employee's gross earnings for the previous year are multiplied by the percentage rate applicable to the employee's vacation entitlement, i.e. 4%, 6%, 8%, 10%, 12%. Pay stubs will indicate the following: i) the vacation accrual dollar amount available for use by the employee in the current calendar year and ii) the vacation accrual dollar amount currently accruing for use in the following calendar year (unavailable in the current year). If necessary, adjustment of vacation pay will be made by the year end to ensure that each employee received the greater amount of vacation pay from application of either the going rate (a) or percentage calculations (b) above.