On a summary judgment record, the court decided a federal employment dispute concerning entitlement to vacation pay for a commission-only employee under the Canada Labour Code.
The plaintiff argued for vacation pay in addition to commissions, while the defendant maintained that the parties had an enforceable agreement permitting vacation pay to be drawn from commission earnings.
The court held that nothing in the Code prohibited such an arrangement, provided the statutory formula of 4% or 6% of yearly compensation was met.
Finding the agreement enforceable, the court dismissed the action and awarded the defendant $20,000 in costs.
