Principal Issues: 1. Can the incentive claimant pay the top-up amount to the covered worker in the form of additional paid vacation time? 2. If the answer to question 1 is “yes”, does the covered worker have to receive the top-up amount in the form of a cash payment for the additional vacation time, or can the covered worker receive it in the form of additional paid vacation time off? 3. Provided that it is permitted, and the covered worker takes the top-up amount in the form of additional paid vacation time off, when does the CRA consider the top-up amount to be paid: (a) in the year additional vacation time was granted to the covered worker, or (b) in the year the covered worker takes the additional paid vacation time off?
Position: 1. Yes; 2. Both payments are possible; 3. (b).
Reasons: Our response is based on a unified textual, contextual and purposive analysis of the legislation.
