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Hickson v Chrysler Corp 4.02

Section 48

REMUNERATION, Allocation of vacation pay, Designation of vacation, Layoff, Severance pay

CITE AS: Hickson v Chrysler Corp, 394 Mich 724 (1975).

Appeal pending: No

Claimant: Joseph R. Hickson

Employer: Chrysler Corporation

Docket No: B70 5047 RO 39184

SUPREME COURT HOLDING: Where a labor agreement provides for the allocation of vacation pay to a portion of an indefinite layoff period, the payments are remuneration and not severance pay.

FACTS: "Soon after being laid off plaintiff received 28 days vacation pay from his employer in accordance with a Chrysler-UAW contract. The 28 days pay was comprised of:

DECISION: The claimant's vacation pay constitutes remuneration under Section 48 of the Act.

RATIONALE: "In this case there can be no question that the Chrysler/UAW contract provided for the designation of the period for allocation of vacation pay."

"Receipt of 'termination, separation, severance, or dismissal allowances, and bonuses' suggests payment independent of and perhaps in addition to vacation payments. The payments in question were clearly 'for a vacation or a holiday.'"



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