Employment Standards Act - Hairstylists

To Whom Does This Apply?

Employers

Summary

Many labour practices within the hairstyling industry have become so commonplace that they are accepted without question as being standard employment practices. In order to ensure that fair labour practices are followed, hairstylists and employers should be familiar with Manitoba's employment standards laws and how they affect people who are paid a percentage of customer fees.

RATE OF PAY ON A PERCENTAGE BASIS

Employers can pay their employees a percentage of their customer fees as long as the employee does not receive an average hourly rate in any single pay period that is below the minimum wage.

WHAT GENERAL HOLIDAYS ARE STYLISTS ENTITLED TO?

There are seven General Holidays which apply to hairstylists and other employees:

• New Year's Day
• Good Friday
• Victoria Day
• Labour Day
• Canada Day
• Thanksgiving Day
• Christmas Day

To be entitled to be paid for a General Holiday, employees who earn more than the minimum wage must have earned wages on at least 15 of the 30 calendar days before the General Holiday. In addition, all employees, including minimum wage earners, must be available for work on their regularly scheduled shift before the Holiday and their regular shift after the Holiday.

Employees who are entitled should receive their average daily earnings of the previous 30 working days not including overtime. For example, if an employee worked 20 of the last 30 working days and earned $1000, the employer would divide 20 into $1000 and the employee would receive $50 for the general holiday.

CAN EMPLOYERS PAY A PERCENTAGE INSTEAD OF DOING THE CALCULATIONS?

No. Employers who commonly add on a percentage of employees' wages instead of paying them directly for General Holidays may be underpaying or possibly overpaying their employees. Employees must be paid for General Holidays as in the example above.

ARE HAIRSTYLISTS ENTITLED TO PAID VACATIONS?

Yes. Employees who qualify are entitled to two weeks' paid vacation after working for the same employer for one year. After five consecutive years of employment with the same employer, employees are entitled to three weeks' vacation. Vacation pay is 2% per week of vacation of regular wages earned in the qualifying year. For example, an employee entitled to 2 weeks' vacation would receive 4% of regular wages earned in the qualifying year. In cases where employees have not qualified for a vacation with pay, they are entitled to their vacation allowance upon termination of employment.

CAN EMPLOYERS ADD VACATION ALLOWANCE TO EACH CHEQUE INSTEAD OF GIVING PAID VACATIONS?

In cases where vacation allowance is added onto each cheque, vacation allowance must be shown separately from other earnings on payroll records and pay statements. Employees who qualify are entitled to take time off for vacation regardless of how their vacation allowance is paid out.

VACATION PAY

Employees who qualify are entitled to two weeks paid vacation after working for the same employer for one year. The employee must have worked 95 per cent of their regular working hours for the year. A maximum of 30 days for sick time or other days that the employer allowed the employee to be away are not included in the 95 per cent calculation, nor is vacation time that has already been taken. After five years of employment with the same employer, employees may be entitled to three week's paid vacation.

VACATION ALLOWANCE

In cases where employees have not qualified for a paid vacation, they are entitled to a vacation allowance.
For the first one to four years of employment, vacation allowance is four per cent of gross regular earnings.
After the fifth year of employment, vacation allowance is six per cent of gross regular earnings.
Normally, vacation allowance should only be paid out when employees leave the job before one complete year, or when they haven't worked 95 per cent of the required working hours.
In cases where vacation allowance is added on to each cheque, vacation allowance must be shown separately from other earnings on payroll records and pay statements. Employees who qualify are entitled to take time off for vacation regardless of how their vacation allowance is paid out.

DISCLAIMER
Information contained in this section is of a general nature only and is not intended to constitute advice for any specific fact situation. For particular questions, the users are invited to contact their lawyer. For additional information, see contact(s) listed below.

Manitoba Contact(s):
Manitoba Labour and Immigration
639 Park Avenue
P.O. Box 50
Beausejour, Manitoba  R0E 0C0
Telephone: (204) 268-6042
Fax: (204) 268-6045
Toll-free (information): 1-800-821-4307