[Ask HR] I’m Leaving My Company, What Happens to My Profit Sharing and Vacation Pay?

We take questions from both employers and employees. If you have a question, let us know below. In the meantime, take a look at this week’s question:

I’m a long term employee contemplating leaving my employer and going to the competition. When I provide my 2 weeks notice my employer may ask me to leave immediately. If they do ask me to leave, will they owe me 2 weeks pay? I also have 3 weeks of vacation and take part in profit sharing which comes due in Spring. Will the company pay this  (pro-rated) out to me?

 

As long as your length of service is greater than two years, if your employer asks you to leave before you have worked through the two weeks notice you gave, the company will owe the 2 weeks pay.

You are entitled to your vacation pay owing up to your last day paid.  Remember, your last day paid is not the same as your last day worked.  You are paid to the end of the two weeks notice.  At three weeks of vacation, your vacation pay is 6% so you will be paid 6% of what you have earned to your last day paid minus any vacation time you have taken.

With regards to profit sharing, your entitlement will depend on the provisions set out in the profit share plan document.   Typically, an employee would need to be actively employed when it’s paid out to receive any payment.  But check the specifics in the plan document.

 

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