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Do contract employees get paid for holidays?

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  • Jul 10th, 2012 11:02 am
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[OP]
Member
Dec 6, 2009
203 posts
10 upvotes
London

Do contract employees get paid for holidays?

I have an opportunity in the works to join a big insurance company in a contract BA role.

My recruiter indicated that no contractors don't get paid for a stat holiday, unless they work it; and when they work it they only get paid their standard hourly rate.

I read on this site: http://www.labour.gov.on.ca/english/es/ ... lidays.php it appears that contractors can get paid for stat holidays:

"Qualifying for Public Holiday Entitlements

Generally, employees qualify for the public holiday entitlement unless they:

fail without reasonable cause to work all of their last regularly scheduled day of work before the public holiday or all of their first regularly scheduled day of work after the public holiday (this is called the "Last and First Rule");
or
fail without reasonable cause to work their entire shift on the public holiday if they agreed to or were required to work that day.

Most employees who fail to qualify for the public holiday entitlement are still entitled to be paid premium pay for every hour they work on the holiday.

Qualified employees can be full time, part time, permanent or on contract. They can also be students. It does not matter how recently they were hired, or how many days they worked before the public holiday."


For those who may have been through this route do you get paid for stat holidays?
If so what rate do you get paid at? regular? or 1.5x?
12 replies
Deal Addict
Oct 14, 2004
1443 posts
413 upvotes
Toronto
No you do not get paid for holidays.

Are you going to incorporate? If so, think of it this way: if you had a contractor come and build you a deck. If Canada Day was in the middle of the project - would you pay him for the day even if he didn't show up? Of course you wouldn't! It's the same thing.
Deal Addict
Jun 9, 2003
4557 posts
649 upvotes
James_TheVirus wrote: No you do not get paid for holidays.

Are you going to incorporate? If so, think of it this way: if you had a contractor come and build you a deck. If Canada Day was in the middle of the project - would you pay him for the day even if he didn't show up? Of course you wouldn't! It's the same thing.
I don't think this is universal. It's difficult to compare a contract deck-builder to, say, a contract professional working on a 1 year term. In an organization where you have contract employees working alongside FT employees, the differences are big enough such that not paying the contract employees for stat holidays would not be great for morale...

When I was a contract software developer at a mid-size company, I received pay for any stat holidays where I worked the day before and after the holiday. I was never asked to work on a stat holiday, so I don't know about the pay rate for those days. I did receive 1.5x for any hours I worked over a certain number per week (46? I can't remember...).
Deal Addict
Oct 14, 2004
1443 posts
413 upvotes
Toronto
Kohanz wrote: I don't think this is universal. It's difficult to compare a contract deck-builder to, say, a contract professional working on a 1 year term. In an organization where you have contract employees working alongside FT employees, the differences are big enough such that not paying the contract employees for stat holidays would not be great for morale...

When I was a contract software developer at a mid-size company, I received pay for any stat holidays where I worked the day before and after the holiday. I was never asked to work on a stat holiday, so I don't know about the pay rate for those days. I did receive 1.5x for any hours I worked over a certain number per week (46? I can't remember...).
If you are a contractor, then the client owes Hours*Hourly Rate+Taxes. Nothing more, nothing less. No OT, no sick pay, no stat holidays. If they do pay it, then are you really a contractor, or are you really just another employee?
Deal Addict
Jun 9, 2003
4557 posts
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James_TheVirus wrote: If you are a contractor, then the client owes Hours*Hourly Rate+Taxes. Nothing more, nothing less. No OT, no sick pay, no stat holidays.
False, the client owes whatever is specified in the agreed upon contract. What you are stating is just the bare minimum requirements.
James_TheVirus wrote: If they do pay it, then are you really a contractor, or are you really just another employee?
Indeed, a contractor can just be a limited-term employee. Happens all the time.

In the organization I worked in, there was a limited FT headcount dictated by HQ. However, for additional resources, contractors could be hired. Although they did not receive benefits, the organization did what it could to compensate contractors fairly compared to the FT staff (they all worked together). This included increased pay in lieu of benefits (very common) and part of this was also paying contractors for stat holidays.

Is it a requirement? No. Does it happen? Sure.

The point is, the OP might be in a situation like this, so to say outright that contractors are never paid for stat holidays is misleading.
Deal Addict
Sep 30, 2008
1277 posts
310 upvotes
James_TheVirus wrote: If you are a contractor, then the client owes Hours*Hourly Rate+Taxes. Nothing more, nothing less. No OT, no sick pay, no stat holidays. If they do pay it, then are you really a contractor, or are you really just another employee?

+1 . That is a big scam come up with employers and employees for IT employees attempting to be contractors for employers to avoid paying CPP & EI and all paper work, while employees deduct employment expenses like car, phone, home office space, etc. But, in substance, they are just employees.
Deal Addict
Oct 14, 2004
1443 posts
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Toronto
Kohanz wrote: False, the client owes whatever is specified in the agreed upon contract. What you are stating is just the bare minimum requirements.
Sick pay, Stat Holiday pay, Vacation Pay would only be found in an employment contract - which a contractor would not have with a client, as they should have an agreement with their own company. Again, why would a client be responsible for these items?
Kohanz wrote: Indeed, a contractor can just be a limited-term employee. Happens all the time.

In the organization I worked in, there was a limited FT headcount dictated by HQ. However, for additional resources, contractors could be hired. Although they did not receive benefits, the organization did what it could to compensate contractors fairly compared to the FT staff (they all worked together). This included increased pay in lieu of benefits (very common) and part of this was also paying contractors for stat holidays.

Is it a requirement? No. Does it happen? Sure.

The point is, the OP might be in a situation like this, so to say outright that contractors are never paid for stat holidays is misleading.
They would be a Contract Employee...not a contractor. Again, with a contractor, there is only a contract for services which includes a rate. In 6 years as a contractor, I have never seen any of my contractor colleagues get paid for Stat Holidays.
Deal Addict
Jun 9, 2003
4557 posts
649 upvotes
James_TheVirus wrote: Sick pay, Stat Holiday pay, Vacation Pay would only be found in an employment contract - which a contractor would not have with a client, as they should have an agreement with their own company. Again, why would a client be responsible for these items?


They would be a Contract Employee...not a contractor. Again, with a contractor, there is only a contract for services which includes a rate. In 6 years as a contractor, I have never seen any of my contractor colleagues get paid for Stat Holidays.
Those two terms (contract employee and contractor) are used fairly interchangeably, so while as you have pointed out there is a clear difference in how they are treated, it's not obvious (to me at least) which the OP is referring to. He says "contract BA role". I was referred to as a "contract software developer" during that time.
Deal Addict
Oct 14, 2004
1443 posts
413 upvotes
Toronto
Kohanz wrote: Those two terms (contract employee and contractor) are used fairly interchangeably, so while as you have pointed out there is a clear difference in how they are treated, it's not obvious (to me at least) which the OP is referring to. He says "contract BA role". I was referred to as a "contract software developer" during that time.
+1. The way they referred to using a recruiter sort of made me assume that he/she was going the contractor route. However, you make a valid point: it could go either way.
[OP]
Member
Dec 6, 2009
203 posts
10 upvotes
London
Big thanks to all those that responded. I will be set up through self incorporation. That was the piece I was missing. I've been a fulltime employee for so long I haven't started thinking of myself in a different manner just yet.
Deal Addict
Mar 29, 2006
3615 posts
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mastereh wrote: Big thanks to all those that responded. I will be set up through self incorporation. That was the piece I was missing. I've been a fulltime employee for so long I haven't started thinking of myself in a different manner just yet.
Then your incorporated business does not charge the client for Stat Holidays, but you can pay yourself vacation pay through your corp payroll.
Deal Fanatic
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Oct 23, 2003
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theres 2 types of contract. As an employee or as a contractor (independent). Both have limited terms time wise, but are different from each other like others have explained.
Deal Addict
Feb 5, 2010
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Buggy166 wrote: theres 2 types of contract. As an employee or as a contractor (independent). Both have limited terms time wise, but are different from each other like others have explained.
+1.

If you are on a full-time term (contract) lets say for one year then you are entitled to benefits per the company policy. In this case you are on the client's payroll and part of their onboarding etc.

Otherwise, you are through an agency and the rest depends on the contents of the contract iself. Sometimes the agencies pay benefits, holidays, sickpay etc. The client is paying your agency or corporation through expense payable.

In most cases, to keep it simple, it all really depends if your on the clients hr system/direct payroll or not.

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