Annex 1 (continued)

C. Requirements specific to cumulative paid sick leave plans

In addition to the requirements explained in Part A, cumulative paid sick leave plans must also meet the following requirements:

1. Accumulation of sick leave credits

Paid sick leave plans must provide one or more days of paid sick leave per month of continuous employment and allow for a minimum accumulation of 75 days. The plan may also allow for the use of sick leave credits while remaining at home because of pregnancy, to care for a newborn or newly adopted child, or to care for a gravely ill family member.

Sick leave credits that are in excess of this minimum 75-day requirement may be used for other reasons (for example, taking a family member to a medical appointment). This is acceptable as long as at least one day per month (12 days per year) is maintained to be used only in cases of an employee’s illness or injury and, if the plan allows it, while the person remains at home because of pregnancy, to care for a newborn or newly adopted child, or to care for a gravely ill family member.

Enhanced paid sick leave plans must provide one and two-thirds days or more of paid sick leave per month of continuous employment and allow for a minimum accumulation of 125 days. The plan may also allow for the use of sick leave credits while remaining at home because of pregnancy, to care for a newborn or newly adopted child, or to care for a gravely ill family member.

Sick leave credits that are in excess of this minimum 125-day requirement may be used for other reasons (for example, taking a family member to a medical appointment). This is acceptable as long as at least 20 days per year are maintained to be used only in cases of an employee’s own illness or injury and, if the plan allows it, while remaining at home because of pregnancy, to care for a newborn or newly-adopted child, or to care for a gravely ill family member.

Both paid sick leave and enhanced paid sick leave plans may allow days to be prorated based on the number of hours an employee has worked in a particular month.

When employers first apply for an EI premium reduction, their sick leave plan must have allowed for a possible accumulation of 72 days of paid sick leave credits (for a paid sick leave plan) or 120 days of paid sick leave credits (for an enhanced paid sick leave plan) in the six years preceding the date of application or since the plan was put in place, whichever is the shorter period. When the amount has not been achieved on the date of the application for the premium reduction, employers will be required to provide additional credits.

Example:

A paid sick leave plan provides an accumulation of one day per month (12 days per year). On the date of the initial application, the plan has been in effect for five years. This means an employee who has been covered by the plan from the beginning could have accumulated 60 days of paid sick leave. In this case, the employer would be required to credit all employees with 12 more days of paid sick leave credits to achieve the 72 days necessary to meet the requirements.

2. Benefit duration

The plan must pay benefits until the earliest of:

the payment of 75 days of sick leave for a paid sick leave plan or 125 days of sick leave for an enhance paid sick leave plan;
the end of the period of incapacity due to illness or injury;
the exhaustion of all accumulated paid sick leave;
the date the employee retires; or
the date of separation from employment for any reason other than illness or injury, if the notice of separation was given prior to the beginning of the illness or injury.

3. Deferral of sick leave

For temporary employees or new employees who are still subject to a probationary period, the employer may defer the use of paid sick leave credits for a period of no longer than 12 months, beginning on the day the employee started employment or joined the plan.

previous page | Table of contents

[ Program Summary | Program Guide | FAQ's | Contact the Program ]