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A-318-79
Jacques Gagnon (Applicant)
v.
Attorney General of Canada (Respondent)
Court of Appeal, Pratte and Le Dain JJ. and Hyde
D.J.—Montreal, September 21; Ottawa, Novem- ber 5, 1979.
Judicial review — Unemployment insurance — Application to set aside decision of Umpire upholding a majority decision of a Board of Referees concerning an amount applicant was paid as vacation pay — Amount was paid pursuant to Quebec Decree concerning the construction industry and was received by applicant three months after termination of employment — During the period of his employment, applicant took four weeks vacation without pay — Whether the amount should be allocated to the four weeks unpaid vacation or whether it should be allocated to the weeks following the date on which it was received — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 28 — Unemployment Insurance Regulations, SOR/71- 324, s. 173(13), (14), (15), (16).
APPLICATION for judicial review. COUNSEL:
R. Paquette for applicant. G. Leblanc for respondent.
SOLICITORS:
Paquette & Meloche, Montreal, for applicant.
Deputy Attorney General of Canada for respondent.
The following is the English version of the reasons for judgment rendered by
PRATTE J.: Applicant is asking that a decision of an Umpire under sections 94 et seq. of the Unemployment Insurance Act, 1971, S.C. 1970- 71-72, c. 48, be set aside under section 28 of the Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10. By that decision the Umpire upheld a majority decision of a Board of Referees respecting the allocation, under section 173 of the Unemployment Insurance Regulations, SOR/71-324, as amended, of a sum of $594 which applicant was paid on December 12, 1977 as vacation pay.
From October 8, 1976 to September 21, 1977 applicant was employed by the firm Simard and Beaudry on construction work at James Bay. In December 1977, almost three months after his employment had terminated, he received the sum of $594 from the Office de la construction du Québec which he was owed as vacation pay under article 20.06 of the Construction Decree [O.C. 1287-77, Reg. 77-234] in effect in the Province of Quebec at that time. It is the allocation of this sum of $594 for purposes of the Unemployment Insur ance Act, 1971 that is at issue here.
From January 1 until the end of April 1977 applicant took four weeks of leave for which he was not paid. Applicant maintained that the sum of $594 which he received should be allocated to these four weeks of vacation he took before his employment terminated. Respondent maintained for his part that this sum should be allocated to the weeks following the date on which it was paid.
The allocation of sums paid as vacation pay is governed by subsections 173(13),(14),(15) and
(16) of the Unemployment Insurance Regulations. These provisions read as follows:
173... .
(13) Holiday pay or vacation pay of a claimant shall be allocated to such number of consecutive weeks, beginning with the first week that is wholly or partly within his holiday period, as will ensure that the claimant's earnings in each of those weeks, except the last, are equal to the weekly rate of his normal earnings from his employer or former employer.
(14) Notwithstanding subsection (13), holiday pay or vaca tion pay, other than for a day referred to in subsection (12),
(a) that is paid or payable to a claimant at the time of his lay-off or separation from employment or prior thereto in contemplation of the lay-off or separation, and
(b) that is not allocated to any specific weeks of holidays or vacation that occurred prior to the lay-off or separation
shall be allocated to such number of consecutive weeks, begin ning with the first week in which the lay-off or separation occurs, as will ensure that the claimant's earnings in each of those weeks, except the last, are equal to the weekly rate of his normal earnings from his employer or former employer.
(15) Notwithstanding subsection (14), where a general con tinuous holiday period occurs at the place where a claimant is employed and that holiday period commences within six weeks
after the claimant's lay-off or separation, holiday pay or vaca tion pay described in subsection (14) shall be allocated to weeks as described in that subsection beginning with the first week of the continuous holiday period.
(16) Where the earnings described in subsections (9) and (14) are paid after a claimant's lay-off or separation occurs and have not been allocated pursuant to subsections (9), (10), (13), (14) or (15), those earnings shall be allocated to such number of consecutive weeks, beginning with the week in which those earnings are paid, as will ensure that the claimant's earnings in each of those weeks, except the last, are equal to the weekly rate of his normal earnings from his employer or former employer.
The sum of $594 to be allocated here was paid to applicant, as I have mentioned, under the Decree respecting the construction industry. For purposes of the present dispute the provisions of articles 20.01 and 20.06 and subparagraph 21.03(10)(c) of this Decree must be borne in mind.
Articles 20.01 and 20.06 read in part as follows:
20.01 Compulsory annual vacations: Each year every employee is entitled to three weeks' annual compulsory vacation which shall be taken as follows:
(1) Summer: All construction job-sites shall close down during the last two full calendar weeks in July and more specifi cally between the following dates:
between 00.01 hours July 17, 1977 and 24.00 hours July 31, 1977;
between 00.01 hours July 16, 1978 and 24.00 hours July 29, 1978.
(3) Winter: All construction job-sites shall be closed for one week during the Christmas and New Year Holiday and, more specifically between the following dates:
between 00.01 hours December 24, 1976 and 24.00 hours January 2, 1977;
between 00.01 hours December 24, 1977 and 24.00 hours January 2, 1978;
between 00.01 hours December 24, 1978 and 24.00 hours January 2, 1979.
20.06 Vacation pay and general holiday pay:
(1) Amount: At the end of each week, the employer shall credit each employee 10% of wages earned during the week, such amount representing the vacation and general holiday pay, or 6% for the cumpulsory annual vacation and 4% for general holidays.
(2) Obligation of the employer: The employer shall submit a monthly report to the board, showing amounts so credited to each of his employees.
(3) Qualifying periods: There are two qualifying periods:
(a) the first runs from January 1 to April 30;
(b) the second runs from May 1 to December 31.
(4) Remittance of annual vacation and general holiday pay:
(a) The board shall remit the vacation and holiday pay to cover the first (1st) qualifying period by mailing to each employee a cheque at his last known address during the first eight (8) days of December of the current year,
(b) The board shall remit the vacation and holiday pay to cover the second (2nd) qualifying period by mailing to each employee a cheque at his last known address during the first eight (8) days of July of the following year.
(c) No one may claim before December 10 or July 10, as the case may be, the obligatory indemnity for annual vacation or holidays.
(d) Notwithstanding the provisions of paragraph c, fol lowing the death of an employee, his legal heirs may claim the deceased annual vacation pay and general holiday pay....
Subparagraph 21.03(10)(c) provides that para graphs (1),(2),(3) and (4) of article 20.01 do not apply to work which, like that on which applicant was employed, was "carried out on the James Bay project".
Pursuant to the Decree applicant was thus en titled to three weeks of vacation each year; he was also entitled to vacation pay equal to 6 per cent of his wages payable in two instalments: the pay earned from January 1 to April 30 was to be paid at the beginning of the following December while the pay earned from May 1 to December 31 was payable at the beginning of July of the following year.
It has been established that the sum of $594 that is to be allocated was received by applicant on December 12, 1977 and represents the vacation pay he earned for his work from January 1 to April 30, 1977. It has also been established, as I stated earlier, that during this same period, from January 1 to April 30, 1977, applicant took four weeks of leave for which he was not paid.
According to respondent, this sum of $594 should be allocated as prescribed by subsection 173(16) of the Regulations since it was "paid after
... lay-off or separation" occurred.
Counsel for the applicant maintained for his part that the rule set out in subsection 173(16) is not applicable in this case. According to the very wording of subsection 173(16), the rule it sets forth applies only to vacation pay "described in subsection . .. (14)". According to counsel for the applicant, earnings are described in subsection (14) only if they are "not allocated to any specific weeks of holidays or vacation that occurred prior to the lay-off or separation". The sum received by applicant, again according to his counsel, should be regarded as having been allocated to the weeks of vacation that occurred prior to his separation because this sum, still according to counsel for the applicant, was intended to pay for the vacation which applicant had taken in advance between January 1 and April 30, 1977. It was to these weeks of vacation that the sum he received should therefore be allocated, applicant argued.
I have come to the conclusion, very regretfully, that applicant's argument cannot be accepted. In my view the Decree does not establish any connec tion or correlation between the vacation pay earned during a given period and the vacation taken during that period. If this were not so, there would be no reason why the pay earned during a qualifying period should be payable several months later. This being the case, it cannot be said, as applicant maintained, that the vacation pay he earned from January 1 to April 30, 1977 was clearly meant to pay for the vacation taken during this same period. It follows that the pay received by applicant "is not allocated to any specific weeks of holidays or vacation that occurred prior to the lay-off or separation" (subsection 173(14) of the Regulations). This sum must therefore be allocat ed in the manner prescribed by subsection 173(16) of the Regulations, as respondent maintained.
For these reasons I would dismiss the applica tion.
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LE DAIN J.: I concur.
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HYDE D.J.: I concur.
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