Vacation pay is allocated pursuant to subsection 36(9) of the Regulations when it is paid or payable “by reason of a lay-off or separation from employment. This means that a payment made under subsection 36(9) of the Regulations covers "any part of the earnings that becomes due and payable at the time of the termination of the contract of employment and the commencement of unemployment" (Lemay v. Canada, 2005 FCA 433).
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