# Boréal Fenestration Inc. — Payroll and Leave Policy (extract for the monthly period close)

Policy HR-P-04, revision 2025-01 — applies to all employees of the Gatineau plant and office. Currency: CAD.

# 1. Pay period and working days

Employees are paid monthly. The October 2025 period runs from 2025-10-01 to 2025-10-31 (23 working days, Monday to Friday).
The HRIS timesheet export for a period contains the days of that period only. Weekly overtime for a partial week at the start or end of a period is assessed on the days contained in the export (the September period was assessed on its own days).

Regular pay = regular hours × hourly rate.
Overtime: hours worked in excess of 40 in a week are paid at 1.5 × the hourly rate. A week runs from Monday to Sunday. There is no daily overtime threshold: a 10-hour day in a 38-hour week is paid at the regular rate. Only hours actually worked count toward the 40-hour threshold; statutory-holiday pay, vacation pay and sick pay are not hours worked.
Overtime hours are reported separately from regular hours (regular hours = hours worked − overtime hours).
Hours are taken from the approved timesheet export. Entries that are implausible (for example more hours than a day can contain) must not be paid as recorded: hold the entry, ask the supervisor to confirm the actual hours, and report it as an exception in the period-close summary.

Monthly salary = annual salary / 12. Unpaid days are deducted at annual salary / 260 per day.
Salaried employees do not receive overtime. Statutory holidays are included in the salary.

The plant and office are closed. Hourly employees who are eligible receive 8 hours at their hourly rate as holiday pay (reported in the "holiday pay" column, not as hours worked).
Eligible = hourly employee with at least 30 calendar days of continuous service on the day of the holiday (i.e. hired on or before 2025-09-13) who is not on an unpaid leave of absence covering the holiday.
Eligibility is determined from the hire date in the HRIS. If the hire date is not on file, eligibility cannot be determined by payroll and the record must be referred to the HR Director before the holiday is paid.

Vacation days must be approved before they are taken. Approved vacation days are paid from the employee's vacation bank (8 h × hourly rate per day for hourly employees; annual salary / 260 per day for salaried employees) and reduce the bank. For salaried employees, approved vacation days are not unpaid days: the monthly salary is paid in full and the vacation pay drawn from the bank is reported separately (it does not change gross regular pay).
Sick days: at most 2 paid sick days per calendar month (hourly: 8 h × rate per day; salaried: no deduction). Approved sick days beyond the second in the month are unpaid.
Leave that is not approved (status "pending" or "denied") at the time of the period close is unpaid. It may be regularised in a later period if the approval is subsequently granted.
Unpaid leave of absence (e.g. parental leave): no pay, no vacation accrual, no holiday pay for the duration of the leave.

Vacation is banked in dollars. Each period, accrual = vacation entitlement % × gross regular pay, where gross regular pay = regular pay + holiday pay + paid sick pay (hourly) or monthly salary net of unpaid-day deductions (salaried). Overtime pay and vacation pay drawn from the bank are excluded from the base.
Entitlement % is set by continuous service at the start of the period (2025-10-01): less than 1 year → 4 %; 1 year to less than 5 years → 6 %; 5 years or more → 8 %. The HRIS computes the percentage from the hire date.
Bank at period end = bank at previous period end + accrual − vacation pay drawn during the period.

On resignation, the final pay includes all hours worked to the last day and the full vacation bank at the end of the final period (previous bank + final-period accrual − vacation pay drawn in the final period). A Record of Employment is issued within 5 calendar days of the last day. HR acknowledges every resignation in writing.

Changes to hourly rates or salaries take effect on the first day of the pay period following written approval by both the HR Director and the Director of Finance (form HR-F-12). Retroactive (backdated) changes are not permitted, except to correct a documented administrative error, and only with the HR Director's written approval. A manager's e-mail is not an approval. Requests that do not meet these conditions are declined and referred to the HR Director.

Production, assembly, shipping and some maintenance employees are members of the plant's union local. Union dues are remitted by the payroll provider; union status does not change the October calculations described above.

The HR coordinator prepares the payroll adjustment workbook, the correspondence arising from the period, and a period-close summary listing every exception, data error and escalation, then submits the "period_close" form in the HR portal.