Employee permission for substituted holidays | Source deductions on employee prizes
Employee permission for substituted holidays
QUESTION: If an employer in a workplace with no collective agreement wants to substitute another day for a statutory holiday, does the employer need employees’ permission to do so?
ANSWER: Yes. In general, that is the case. Employers are required to obtain permission from their employees.
The following chart details more specific requirements for provinces and territories across Canada:
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Jurisdiction |
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Canada Labour Code |
At least 70 per cent of employees affected by the substitution must agree to it. If the substitution affects only one employee, that employee must agree to it. The employer must post notice of the substitution in “readily accessible places” in its workplace for at least 30 days before the change takes effect. The notice must contain information such as: the employer’s name, the address or location of the workplace, identification of affected employees, the dates of the statutory holiday and the substituted day, the dates the substitution takes effect and ends, the date the notice is posted, and a statement that at least 70 per cent of affected employees must agree to the substitution for it to come into effect. |
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Alberta |
Employers may substitute a statutory holiday for another day if they clearly inform their employees in advance and the employees do not lose their entitlement to any of the statutory holidays because of the substitution. Employment standards advises that employers notify employees of the substitution in writing. |
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British Columbia |
A majority of employees affected by the change must agree to the substitution of the day. |
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Manitoba |
A majority of employees affected by the change must agree to it in writing. The employer must provide employees with the substituted day within 12 months of the statutory holiday. |
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New Brunswick |
Employees must agree to it; however, employers who run continuous operations do not need employees’ consent to implement a substitute holiday. The employer must provide employees with the substituted day no later than their next annual vacation. |
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Newfoundland and Labrador |
The Labour Standards Act only provides for substitution of statutory holidays in workplaces where there is a collective agreement. |
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Northwest Territories |
A majority of employees affected by the change must agree to it. The employer must also apply to the employment standards officer for permission to make the change. |
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Nova Scotia |
A majority of employees affected by the change must agree to it. If they do, the employer may apply in writing to the director of labour standards for permission to make the substitution. |
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Nunavut |
A majority of employees affected by the change must agree to it. The employer must also apply to the labour standards officer for permission to make the change. |
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Ontario |
Employers may substitute a statutory holiday for another day as long as they provide the substituted day off no later than three months after the holiday or, with the employee’s written or electronic agreement, no later than 12 months after the holiday. Employers who substitute a holiday must give the employees a written statement setting out the holiday being substituted, the date of the substituted holiday, and the date the employer provided the statement. Employers must give employees the statement before the actual statutory holiday. |
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Prince Edward Island |
Employers may substitute a statutory holiday for another day off, provided that they pay the employees their regular wage rate for the time worked on the statutory holiday and the employer and employees agree on the substituted date. The substituted holiday must take place before the date of the employees’ next annual vacation. |
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Quebec |
Employers are allowed to substitute another day for a statutory holiday as long as they provide the substituted day within three weeks before or after the actual holiday in a workplace without a collective agreement. For employees whose type of work (for example, restaurant or hotel) requires that they work on the National Holiday (June 24), employers must provide the substitute day on the working day before or after June 24. |
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Saskatchewan |
A majority of employees affected by the change must agree to it. The employer must also apply to employment standards for a permit allowing for the substitution. |
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Yukon |
A majority of employees affected by the change must agree to it. |
Source deductions on employee prizes
QUESTION: This year at our company picnic, we are holding a draw for prizes for our employees (for example: cameras, golf balls, gift cards). The contest is open to all employees attending. Are the prizes taxable benefits for the employees who win them?
ANSWER: Yes. The CRA states that if an employer gives an item to an employee from a prize draw that only employees can take part in, the prize is a taxable benefit.
As a result, it is subject to Canada/Quebec Pension Plan contributions and income tax deductions.
If you pay the prize in cash, you must deduct employment insurance (EI) and Quebec Parental Insurance Plan (QPIP) premiums. Non-cash and near-cash prizes are not subject to EI or QPIP.
Remember to include the GST/HST or the combined GST/QST in the value of a non-cash or near-cash prize.
Report the taxable benefit in box 14 and in the “Other Information” area of the T4 (code 40) and in boxes A and L of the RL-1.
Note: It is Revenu Québec’s policy that if an employer gives the employee a plaque, trophy, or something similar that is of nominal value for which there is no market, there is no taxable benefit.
