What are Ontario’s public holidays?
Ontario recognizes nine public holidays, typically referred to as “statutory” or “stat” holidays. These days are protected under the Employment Standards Act (ESA), requiring employers to understand the rules and regulations regarding employee entitlements, including common payroll deductions. The statutory holidays in Ontario are:
- New Year’s Day: January 1
- Family Day: the third Monday in February
- Good Friday: the Friday before Easter Sunday
- Victoria Day: the Monday preceding May 25
- Canada Day: July 1
- Labour Day: the first Monday in September
- Thanksgiving Day: the second Monday in October
- Christmas Day: December 25
- Boxing Day: December 26
What is a federal statutory holiday?
A federal statutory holiday applies to federal government employees across Canada, including Ontario. As such, federally operated businesses within the province are closed. These are particularly important to note if your workplace is operated by the federal government or if it interacts with governmental agencies frequently throughout the day. Here are the federal public holidays in Canada that are not public holidays in Ontario:
- Easter Monday: the Monday after Easter Sunday
- Civic Holiday: the first Monday in August
- National Day of Truth and Reconciliation: September 30
- Remembrance Day: November 11
What employees are eligible for public holiday entitlements?
Typically, an employee can expect to be paid for all Ontario statutory holidays, while having the day off. This entitlement is not limited to full-time employees. Those who are part-time or contract employees will also receive this compensation. There are, however, two exceptions. If your company is exempt from the Ontario Employment Standards Act or if the employee fails to meet the requirements of the “first-and-last rule,” these entitlements may not apply. Both exceptions are explained below:
What is meant by an exempt industry?
Certain industries are exempt from the Ontario Employment Standards Act’s rules and may choose to open on public holidays due to the nature of their business. According to the Government of Ontario, this includes emergency service providers and hospitals, hospitality services and sales, transportation and agriculture, to name a few. While many employers choose to shut down for Good Friday, Christmas Day and New Year’s Day, they may opt to remain open on the remaining statutory holidays.
Many Ontario companies may opt to shut down for the August Civic Holiday, even though it is not a recognized statutory holiday. With many businesses closed for the day, some companies deem it more cost-effective to simply close. Employees may also be looking forward to a holiday during this summer month; allowing them to observe it can potentially foster a happier workforce.
What is the last-and-first rule?
To receive pay for an Ontario public holiday, the Ontario Government explains that an employee must work the last regularly scheduled day of work before the public holiday and the first regularly scheduled day of work after the public holiday. They do not have to be the days immediately preceding or following the holiday.
For example, if an employee is scheduled to work on June 30th and fails to provide you with reasonable cause, they will not receive pay for the July 1st holiday. Similarly, if the employee does not work their July 2nd shift, they would not receive holiday pay. Furthermore, if they only work part of their shift on the day before or after the holiday, they will not receive holiday pay.
“Reasonable cause” refers to something beyond the employee’s control that prevents them from working their scheduled shift. The Government of Ontario lists examples of reasonable cause as being: vehicular breakdown, previously scheduled vacation days, sick leave, bereavement and a power outage causing their alarm clock to fail.
What happens when an employee works a statutory holiday?
When an employee agrees to work on a statutory holiday, it doesn’t automatically mean they receive overtime pay. They may either receive premium pay or take a substitute holiday:
- Premium pay: This entitles the employee to receive 1 ½ times their regular pay, commonly referred to as time and a half.
- Substitute holiday: If the employee opts for a substitute holiday, they will receive a different working day off with pay. This day must be scheduled within three months of the public holiday it is replacing. If the employee signs a written agreement, it can be scheduled for up to one year after the holiday.
There are some exceptions. Companies with continuous operations, such as emergency services, hospitals or retirement homes require round-the-clock scheduling. Employees in these settings, such as an emergency room nurse, may need to work a statutory holiday without their consent. In these cases, the employer is required to comply with their industry guidelines as set out by the Ontario Employment Standards Act, adhering to holiday entitlements and compensation rates.
How do you calculate holiday pay in Ontario?
The province mandates statutory holidays. The Ontario Employment Standards Act ensures that your team can enjoy a day off without worrying about lost wages.
If your company is incorporated in Ontario, it adheres to this act and ensures it follows the rules for calculating holiday pay in the province. Companies that fail to comply with provincially mandated rules like the Ontario 3-Hour Rule may face serious consequences. Here are some of these rules:
- Calculating holiday pay: Begin by determining the employee’s regular wages earned in the four weeks before the statutory holiday. Then, calculate how much vacation pay they have earned during this same period. Add these two totals together. Divide this sum by 20.
- Calculating premium pay: As previously mentioned, employees who work stat holidays are entitled to time and a half. For example, if a team member earns an hourly wage of $30, their premium wage will equate to $45 per hour ($30 x 1 ½).
- Vacation days: Public holidays are in addition to vacation days and cannot replace a regular vacation day. For instance, if any employee has a scheduled vacation from June 30th to July 8th, they are still entitled to Canada Day holiday pay.
- Calculating overtime pay: When calculating Ontario overtime pay, it is important to note that statutory holidays can decrease the number of hours required before overtime kicks in. For instance, if a statutory holiday falls in a 40-hour work week, 8 of those hours are considered holiday pay. Therefore, any hours worked above 32 hours must be considered overtime.
If you need help calculating holiday pay, check out the Government of Ontario’s Public Holiday Pay Calculator.
Your organization is now fully versed on adhering to provincial rules and regulations regarding statutory holidays. Now, you and your team can approach the next holiday with ease and a bounce in your step.
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