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DID YOU KNOW that employees can receive pay for a paid holiday?

December 4, 2020

by Robert Yeo, Employment Standards Branch

Paid holidays (also called statutory or public holidays) are special days that are observed throughout the year.

Seven paid holidays

  • New Year’s Day – January 1
  • Islander Day – third Monday of February
  • Good Friday – Friday before Easter
  • Canada Day – usually on July 1
  • Labour Day – first Monday in September
  • Remembrance Day – November 11
  • Christmas Day – December 25

How to qualify

Employees are eligible for a paid holiday if they meet all three of the following conditions while working for the same employer:

a) employed for at least 30 calendar days prior to the paid holiday

b) earned pay on at least 15 of the 30 calendar days prior to the paid holiday

c) worked on the last scheduled shift before the paid holiday and the first scheduled shift after the paid holiday.

What is the benefit if the qualified employee does not work on the paid holiday?

An employee who is entitled to a paid holiday but who does not work on that day gets the day off along with the employee’s regular or average day’s pay.

What is the benefit if the qualified employee does work on the paid holiday?

On the other hand, an employee who is entitled to a paid holiday but who works on that day must be paid by either one of two ways:

Option 1: Paid 1.5 times regular rate of wages for each hour worked by the employee on the paid holiday in addition to payment of an average day’s pay.

Option 2: Paid regular rate of wages for each hour worked by the employee on the paid holiday in addition to getting a future working day off along with the employee’s average day’s pay.

Calculating an average day’s pay

For the purposes of calculating pay for the paid holiday, an average day’s pay is calculated by totaling the number of hours worked by the employee in the 30 calendar days prior to the paid holiday and dividing these hours by the number of days worked by the employee in the same period.

When a paid holiday falls on an employee’s usual day off

Sometimes a paid holiday falls on a day that is usually a day off for an employee who is entitled to a paid holiday. In these cases, the eligible employee must receive a day off along with a day’s pay on either:

a) the employee’s next working day immediately following the paid holiday; or

b) the day immediately following the employee’s vacation; or

c) an agreed-upon day to be taken some time before the employee’s next annual vacation.

Other situations

A paid (statutory) holiday such as Canada Day or Labour Day could fall within an employee’s paid vacation. If this occurs and if the employee is also entitled to the paid holiday, the employee=s vacation is extended by an extra day.

This article provides only general information. Details about paid holidays or any other provision of the Prince Edward Island Employment Standards Act and Regulations can be obtained by contacting the Prince Edward Island Employment Standards Branch:

phone: 902-368-5550 or toll free: 1-800-333-4362

Visit www.peiemploymentstandards.com for more information.

Employment Standards Branch is located in Charlottetown at Sherwood Business Centre, second floor, 161 St. Peter’s Road.

Filed Under: Current issue, Dec 20/Jan 21

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