Compensation in Lieu of Paid Holidays Not Taken

When a contract is terminated and the payee has not taken his or her vacation entitlement, he or she is entitled to payment in lieu of the holiday entitlement. In the case of termination because of gross misconduct (faute lourde), compensation in lieu of paid holidays is not paid for vacation acquired during the current period.

Earning Description

CP ICCP A2, CP ICCP A1, and CP ICCP A

Triggered by a termination, irrespective of the Action/Reason code. These earnings calculate compensation in lieu of paid holiday up to three years in the past.

CP ICCP 1A

Calculates compensation for the current vacation year. This earning is dependent on the Action/Reason for the termination. The bracket IND BR FIN CONT assigns a value to the variable IND VR DR ICCP that determines whether the earning is processed. You must update the bracket to indicate the Action/Reason codes that trigger this earning.

Here is an example of how the allowance is calculated.

If a company's vacation year begins on June 1 and ends on May 31 of the following year and a payee leaves the company on October 2, 2010, the compensation in lieu of paid holiday earnings are calculated as follows:

  • CP ICCP A2 retrieves the allowance for vacation not taken during the vacation year June 1, 2007 through May 31, 2008.

  • CP ICCP A1 retrieves the allowance for vacation not taken during the vacation year June 1, 2008 through May 31, 2009.

  • CP ICCP A retrieves the allowance for the vacation year June 1, 2009 through May 31, 2010.

  • CP ICCP 1A retrieves the allowance for vacation granted (but not taken) between June 1, 2010 and October 2, 2010 (if the bracket retrieves a value for the variable IND VR DT ICCP equal to 1 for the departure reason).

The amount of compensation in lieu of paid holidays (days not taken) is calculated as follows:

  1. The balance for the period is calculated using the 1/10th rule.

  2. The balance for the period is calculated using the salary uphold rule.

  3. The more favorable of the two balances is used.

Note:

This allowance is paid with the final paycheck. It is liable to social contributions and is taxable.