Q: We have a question regarding Section 28 (3)(b) of the Act and would appreciate if you could assist with our understanding.

Where the holiday pay entitlement at 12 months is reduced by the amount that the employee has already received, how does that apply where entitlement is in weeks but 8% of gross earnings paid is in dollars?

Example:

• Employee works continuously for 9 months on a fixed term agreement and received 8% of their gross earnings during this time
• Following this fixed term agreement, the employee is employed permanently.
• What entitlement would they have at 12 months employment?

A: If the employee has now received entitlement after becoming permeant they would still get 4 weeks as per the act.  Paying out the 8% is just the money part and does not effect the time component required to be provided under the act.