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When Is a Hour Reserve Liquidated?

The hour reserve must be liquidated in the following situations:

Annual liquidation

Once a year, the employer must liquidate the employees’ hour reserve.

The annual liquidation takes place at the end of each averaging and reference period, as determined by the collective agreement. The Residential sector collective agreement 2013-2017 determines four of these periods:

  • March 31, 2013, to March 29, 2014
  • March 30, 2014, to March 28, 2015
  • March 29, 2015, to March 26, 2016
  • March 27, 2016, to March 25, 2017

The unused hours are liquidated by payment at the applicable wage rate at the time of the liquidation, increased by 50% (time-and-a-half) for light residential, or increased by 100% (double-time) for heavy residential.

Layoff of more than six months

When there is a layoff of more than six months, the employer must completely liquidate the hour reserve into compensatory time, payable at the wage rate applicable when the layoff took effect, all at regular pay (base wage) for the light residential sector or increased by 50% (time-and-a-half) for the heavy residential sector.

Dismissal

When an employee is dismissed, the employer must completely liquidate the hour reserve at the wage rate indicated in appendix R or R-1, increased by 50% for the light residential sector or 100% for the heavy residential sector.

Employee resignation

When an employee resigns, the employer must completely liquidate the hour reserve at the wage rate set out in appendix R or R-1, all at regular pay (base wage) for the light residential sector or increased by 50% (time-and-a-half) for the heavy residential sector.

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