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Feb 05, 2016

Employer cannot contract out of CLC vacation pay obligations

A recent decision involving vacation pay entitlement for a commission sales employee represents a well-reasoned approach to the application of Canada Labour Code (CLC) provisions, say Toronto civil litigators Kevin Fisher and Reshma Kishnani.

“This case is a great outcome for our client and a very clear decision, on vacation pay obligations for those employers in industries that fall under federal jurisdiction such as radio, telecommunication, banks, etc. who are all required to follow the provisions of the CLC,” says Fisher, a partner with Basman Smith LLP. “It appears that it is a relatively common practise for employers to try and contract out of their obligations to pay these benefits to employees in these types of arrangements.”

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