Vacation Pay — Statutory Holiday

Vacation Pay — Statutory Holiday

Fact Situation: Mary Jensen was employed by Nackawic Pulp Company as a professional engineer. She accepted an offer for earlier retirement and claimed that the defendant owed her money for days banked between 1970 and 1988 for hours worked on statutory holidays and weekends. She had the option to take hours off or to bank time. Her employer, Nackawic Pulp Company, said that she was not entitled to payment for “bank days” given her executive position.

During Mary’s career, it was necessary that she work on statutory holidays and weekends, from time to time. Many times she worked long hours past the end of the normal working day. She kept a record of her hours using forms provided by her employer.

Question: Was she entitled to payment of the accumulated banked days?

Answer: No. A senior executive was not permitted to accumulate vacation pay over years and demand payment upon termination. Having accepted the offer of retirement and not specifying any amount owing for overtime, Mary was unable to now claim a further amount.

Tip (Legal Advice): What to do — What or How to avoid the problem:

Mary should have made an effort to renegotiate this matter before accepting the retirement offer.

“Without specifying to your employer that he owes you overtime pay arising from banked days, you cannot thereafter claim that amount!”

Chatterton v. St.-Anne-Nackawic Pulp Co.
106 N.B.R. (2d) 212
New Brunswick Court of Queen’s Bench
Trial Division – Judicial District of Fredericton

Judgement: May 22, 1990

These legal tips are for information purposes only and cannot be used as legal opinions. Presented by the law office of Lyne A Thériault in Grand Falls, New Brunswick. Telephone 506.473.5046 Visit our website on Mighty Grand Falls.