REMUNERATION, Allocation of vacation pay, Plant shutdown, Vacation pay
CITE AS: Van Wormer Industries v MESC, No. 84-2768 AE, Macomb Circuit Court (February 28, 1985).
Appeal pending: No
Claimant: Jerry L. McCullough
Employer: Van Wormer Industries
Docket No: B83 21674 96043W
CIRCUIT COURT HOLDING: Where an employer fails to properly allocate vacation pay to a period of lay-off, the vacation pay is not remuneration under Section 48 of the Act.
FACTS: On May 2, 1983, the employer posted a notice that the entire plant would be closed for a one week vacation period effective June 30, to July 11, 1983. The contract provided that employer could not shutdown the plant unless such action was announced by the employer not later than May 1st. May 1st was a Sunday. On May 2, 1983, the claimant requested and was granted vacation time for the period July 16, to July 31. Claimant filed for unemployment for the period of the plant shutdown.
DECISION: The claimant is eligible for benefits for the period of the plant shutdown under Section 48.
RATIONALE: "It is settled that an employer may lawfully designate a period during lay-off for the allocation of vacation, Brown v LTV Aerospace Corp, 394 Mich 702." In this case, the employer did not make a proper allocation.
"The terms of the collective bargaining agreement specify that the plant may be closed for a two week vacation period, announced by the employer not later than May 1st. (emphasis provided). It is undisputed that on May 2nd, the employer posted a notice stating the plant would be closed for a one week vacation period effective June 30, 1983 at 4:00 p.m. through July 11, 1983 at 7:30 p.m. The notice did not comply with specified requirements. ...
" ... it must be kept in mind that the Michigan Employment Security Act is remedial in nature and is to be liberally construed to provide coverage, and its disqualification provisions are to be narrowly interpreted. Kempf v Michigan Bell Telephone Co., 137 Mich App 574 (1974)."