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Last updated on: September 29th, 2023

Labor Requirements

The Employment Standards Act, Youth Employment Act, and other labor laws define the rights and obligations of employees and employers and set the minimum standards to ensure individuals are treated fairly in the workplace.

 

 

Hours & Pay Regulations

Normal Working Hours

The standard hours of work of an employee shall not exceed 48 hours in a week (exclusive overtime).  

 

Exception: This Labor Authority may grant the authority to establish alternative standard work weeks with different hours, specifying to which employers and employees these rules apply and exempt certain employers and employees from the standard work week.

 

Work week means a recurring period of 7 consecutive days selected by the employer for the purpose of scheduling work, or if the employer has not selected such a period, a recurring period of consecutive days beginning on Sunday and ending on Saturday. Employment Standards Act, §15.

 

Reporting Pay

Each time an employee is required to report to work or for work-related activity, the employer shall pay the employee wages at the employee’s regular rate of pay for not less than 3 hours. Employment Standards Act, §17.

 

Recording Requirements – An employer shall make and keep in respect of each employee of the employer at the employer’s principal place of business in the province, for a period of 36 months after the employee performs work for the employer, complete and accurate records of the employee shall include:  

      • the name, address, and social insurance number of the employee;
      • the date of birth of the employee;
      • the employee’s wage rate and net pay for each pay period;
      • the number of hours the employee works in each day and week;
      • the gross earnings of the employee per pay period;
      • the deductions from the employee’s gross earnings and the nature of each deduction;
      • the date the employee started employment and the date the employee’s employment terminated;
      • the type of work performed by the employee;
      • any period during which the employee was on annual leave ;
      • annual leave pay due to be paid to the employee;
      • any paid holiday pay due or paid to the employee; 
      • any period during which the employee was on a leave of absence and the reason for the leave of absence;
      • the number of overtime hours the employee has accumulated and used; and
      • the dates of dismissals, suspensions, or layoffs of the employee and the dates of all notices thereof.

    Employment Standards Act, § 5.6.

    Overtime

    Any Work performed by the employee during a work week (i.e. 48 hours per week) in excess of the standard weekly work hours is defined as overtime. 

     

    Overtime Pay – An employee is entitled to receive overtime pay at a premium rate of 1.5  times the employee’s regular rate of pay.

     

    Compensatory Rest Period: Time off in lieu – Instead of receiving overtime pay, an employee can opt for compensatory time off through a written agreement with the employer, where the employer grants 1.5 hours of paid time off for each overtime hour worked, with the condition that this time off must be taken within 3 months of the week in which the overtime was worked.

     

    Where Employment Ends Before Paid Time Off is Taken – Where the employment ends before any paid time off requested for overtime hours worked has been taken, the employer shall pay the employee overtime pay at 1.5 times the employee’s regular rate of pay for any overtime hours that the employee worked and has not been compensated for. Labor Standard Act, §15.1.

    Breaks

    An employee is entitled to at least 30 minutes of unpaid meal breaks for eating after every 5 consecutive hours of work.

     

    An employer shall not require an employee to remain at the employee’s place of employment during an unpaid rest period or eating period.  Labor Standard Act, §16.

     

    Weekly RestAn employee is entitled to receive weekly rest from their work. An employer shall provide at least 24 consecutive hours of work in every period of 7 days and, whenever possible, that rest period shall include Sunday. Labor Standard Act, §16.

    Sunday Work

    Retail Business Only

    An employee working for a retail business subject to the Retail Business Holidays Act R.S.P.E.I. 1988, Cap. R-13.02 on the day this section becomes effective can decline to work on Sundays for the same employer, provided the employee provides verbal or written notice of refusal at least seven days in advance of the relevant Sunday.

     

    Refusal may Cover Multiple Sundays

    An employee may give the notice in relation to one Sunday, more than one Sunday, or any combination of Sundays. No employer, or person acting on behalf of an employer, shall dismiss, suspend, lay off, penalize, discipline, or discriminate against an employee because the employee has refused, or given a notice of refusal, to work on a Sunday. Labor Standard Act, §16.1.

    Public Holidays

    An employee in PEI is entitled to 8 paid  public holidays as follows:

        • New Year’s Day, 
        • Islander Day, 
        • Good Friday, 
        • Canada Day,
        • Labour Day, 
        • National Day for Truth and Reconciliation
        • Remembrance Day
        • Christmas Day 
        • and any day prescribed as a paid holiday in the regulations.

       

      Every employer has to grant every employee a holiday with pay on each paid holiday falling within any period of employment.

       

      Paid Holiday on Non-Working Day

      When a paid holiday falls on a day that is a non-working day, the employer is required to grant a holiday with pay on either:

              • The working day immediately following the paid holiday; or
              • The day immediately following the employee’s vacation,

      Or grant the employee another day agreed upon by the employee and the employer before the date of the next annual vacation of the employee.

       

      Holiday Pay – An employee who works on a paid public holiday is  entitled to receive from their employer as – 

              • pay at a rate at least equal to 1.5  times the employee’s regular rate of wages for the time worked on that day in addition to a day’s pay at the employee’s regular rate of pay; or
              • pay that employee at the employee’s regular rate of wages for the time worked on that day and grant the employee a holiday with pay on another day agreed by the employer and the employee before the date of the next annual leave of the employee.

      Note: An employer of an employee whose wages are calculated on a weekly or monthly basis shall not reduce the employee’s weekly or monthly wages for a week or month in which a paid holiday occurs by reason only that the employee does not work on the paid holiday.

       

      Exceptions

      Holiday Pay does not apply if the employee:

              • Has been in the employ of their present employer for less than 30 calendar days prior to the paid holiday;
              • Has not received pay for at least 15 of the 30 calendar days immediately preceding the paid holiday;
              • Fails, without reasonable cause, to work on both the employee’s last scheduled workday before the paid holiday and the employee’s first scheduled workday after the paid holiday. This does not apply to an employee if the employer has directed or permitted the employee not to report for work on one or both of the scheduled workdays;
              • Has agreed to work on the paid holiday and has, without reasonable cause, failed to report for and perform work on the paid holiday; or
              • Is employed under a contract of service under which the employee may elect to work or not when requested to do so.

      Labor Standard Act, §6 – 10.

      Annual Leave

      An employee earns annual leave pay and annual leave during the first 12 months that they work for an employer and every 12 months after that.

       

      Duration of Annual Leave

          • If an employee is employed by the same employer for less than 8 years, the employers must give every employee annual leave of 2 weeks after every 12 months of work and within the following four months (this 4-month period can be varied if mutually agreed upon by the employer and the employee);
          • If an employee is employed continuously by the same employer for 8 years or more, the employer must give every employee annual leave of 3 weeks after every 12 months of work and within the following four months (this four-month period can be varied if mutually agreed upon by the employer and the employee).

      An employer must tell the employee of their annual leave at least one week before it begins.

       

      Annual Leave Pay – Where an employee works for an employer for a continuous 12 months period, the employer has to pay at least one day before the annual leave begin:

          • If an employee is employed by the same employer for less than 8 years, the employer shall provide annual leave pay of at least 4 %  which the employer must pay at least 1 day before the annual leave begins.
          •  If an employee is employed continuously by the same employer for eight years or more, the employer shall provide annual leave pay of at least 6% which the employer must pay at least 1 day before the annual leave begins.

      An employer can include annual leave pay in an employee’s hourly rate, which would be paid in every pay cheque if the employment is seasonal.

       

      Waiver of entitlement to Annual Leave with Pay – Where an employee works for an employer for a continuous 12-month period; and works less than 90 % of the normal working hours of the employee during that period, the employee may waive the employee’s entitlement to annual leave with pay in return for the payment by giving the employer written notice of the waiver prior to the end of the 12 -month period.

       

      Sick Leave – Sick leave with pay shall not be considered as annual leave with pay or pay in lieu of annual leave.

       

      Annual Leave Upon Termination of Employment – Where employment ceases, the employer shall, not later than the last day of the next regular pay period after the employee’s employment ceases, pay to the employee:

          • An amount equal to 4% of the employee’s wages for the period the employee has worked for the employer if the employee has worked for a period of less than 12 continuous months.
          • An amount equal to 4% of the employee’s wages for the period the employee has worked for the employer from the date the employee last became entitled to annual leave with pay if the employee has been employed continuously by the employer for a period of at least one year and less than 8 years; or
          • An amount equal to 6% of the employee’s wages for the period the employee has worked for the employer from the date the employee last became entitled, to annual leave with pay, if the employee has been employed continuously by the employer for a period of at least eight years.

       

      Pay in Lieu of Annual Leave – Where an employee gives an employer notice of the employee’s wish to waive their entitlement to an annual leave with pay the employer shall pay to the employee, an amount at least equal to 4 % of the employee’s wages for the 12 -month period if the employee has less than 8 years of continuous employment with the employer; or an amount at least equal to 6 %  of the employee’s wages for the twelve-month period, if the employee has at least 8 years of continuous employment with the employer not later than one month after the end of the 12 -month period during which the employee established the entitlement.

       

      Annual Leave Coinciding with Public Holiday – If a paid holiday occurs during the annual leave, then the leave must be increased by a working day. Labor Standard Act, §11 – 13.

      Special Leave

      Maternity Leave

      An employee is entitled to take pregnancy leave of up to 17 weeks commencing at any time during the period of 13 weeks immediately preceding the estimated date of birth if they have been employed for a total duration of at least 20 weeks of the 52 weeks immediately preceding the commencement date for the maternity leave.

       

      Certificate Requirement: The pregnant employee must submit a pregnancy certificate to their employer procured from a medical practitioner that states that the employee is pregnant and specifies the estimated date of birth. 

       

      Notice Requirement: An application by an employee to the employer for maternity leave shall be made in writing which specifies the dates that the employee proposes to commence and terminate the leave and the notice should be given to the employer at least 4 weeks before the commencement date for the leave.

       

      In cases where the actual date of birth is later than the estimated date of birth, the employee is entitled to not less than 6 weeks leave after the actual date. The employee may return to work and the employer may permit the employee to return to work at a date earlier than 6 weeks after the date of actual delivery.

       

      Commencement of maternity leave – If the pregnancy of an employee would unreasonably interfere with the performance of the employee’s duties, the employer may require the employee to commence maternity leave not more than 3 months prior to the estimated date of birth. Employment Standards Act, §18 – 21.

       

      Parental and Adoption Leave

      An employee who has been employed for a total of at least 20 weeks of the 52 weeks immediately preceding the day on which the requested leave is to commence who has become the natural parent of a child, or assumes actual care and custody of a child for the purposes of adoption, or adopts or obtains legal guardianship of a child under the law shall be entitled to parental leave without pay for a continuous period of up to 62 weeks.

       

      The aggregate amount of leave that may be taken by one or two ( both parents) employees for maternity and parental leave in respect of the same event, shall not exceed 78 weeks.

       

      Notice requirement: The employee is required to submit an application for parental leave at least 4 weeks before the expected date of commencement of the leave and include the date of termination of the leave.

       

      Where an employee intends to take parental leave in addition to maternity leave, the employee must commence the parental leave immediately on the expiry of the maternity leave without a return to work after the expiry of the maternity leave and before the commencement of the parental leave, unless the employee and the employer otherwise agree.

       

      Parental leave shall be taken only during the 52-week period commencing on the date of the child’s birth or the date on which the child comes into the custody of the employee, whichever is later.

       

      Leave Extension – Where an employee who is on leave without pay granted for maternity or parental leave submits an application to the employer for an extension of such leave and provides a certificate from a medical practitioner that states the requirement, the employer shall grant the employee an extension of the leave of absence without pay of up to 5 consecutive weeks, beginning immediately after the end of the leave granted. Employment Standards Act, §22.

      Family Leave

      An employee is entitled to receive 3 days of unpaid family leave in total during a 12 month calendar period if they have to meet responsibilities related to the health or care of a person who is a member of the immediate family or extended family of the employee.

       

      An employee who intends to take a leave shall advise the employer of the intention to take the leave, the commencement date of the leave, and the anticipated duration of the leave. Labor Standard Act, § 22.1.

      Leave Related to Critically Ill Child

      An employee is entitled to receive 37 weeks of unpaid leave within a 52-week period for the purpose of providing care and support to the critically ill child if they have been employed for a continuous period of 3 months or more and is the parent of a critically ill child, for the purpose of providing care and support to the critically ill child.

       

      An employee may take leave during the 52-week period that commences – 

          • The first day of the week in which the medical certificate was issued in respect of the ill child;
          • The first day of the work week when the employee begins to leave, before the issuance of the medical certificate.

         

        An employee’s entitlement to unpaid leave ends on the last day of the workweek in which either the critically ill child dies, or the employee has taken 37 weeks of unpaid leave of absence. An unpaid leave of absence may only be taken in periods of not less than one workweek in duration.

         

        The total amount of unpaid leave of absence that may be taken by two or more employees in respect of the care and support of the same critically ill child or children shall not exceed 37 weeks. An employer can make a request in writing to an employee to furnish a copy of the certificate respecting the critically ill child or children. Labor Standard Act, §22.11.

        Leave Related to Death or Disappearance of a Child

        An employee who has been employed by an employer for a period of 3 continuous months is entitled to receive 52 weeks of unpaid leave commencing the first day of the work week during which the child disappears.

         

        Where an employee has been employed by an employer for a continuous period of 3 months or more and is the parent of a child who has died and it is probable, considering the circumstances, that the child died as a result of a crime, the employer shall, on the request of the employee, grant to the employee unpaid leave of absence for up to 104 weeks, commencing the first day of the work week in which the child is found dead.

         

        An employee’s entitlement to an unpaid leave of absence ends on the last day of the workweek in which any of the following occur:

                • 14 days have expired since the child was found alive or since circumstances changed and it no longer seemed probable that the disappearance/death of the child was the result of a crime;
                • 52/104 weeks of unpaid leave has expired.
                • The child is found dead in case of disappearance.

        An unpaid leave of absence may only be taken in periods of not less than one workweek in duration.

         

        The total amount of leave that may be taken by two or more employees in respect of the disappearance or death of the same child, shall not exceed 52 weeks and 104 weeks respectively. An employer can make a request in writing to an employee to provide the employer with reasonable documentation to support the employee’s entitlement to unpaid leave. Labor Standard Act, §22.12.

        Sick Leave

        Duration of Sick Leave: An employee is entitled to 3 working days of unpaid sick leave in a 12-month calendar period.

         

        Employees who have more than 5 years of continuous service with the same employer are entitled to 1 day of paid sick leave and up to 3 days of unpaid sick leave each calendar year.

         

        Eligibility Criteria of Sick Leave: An employee is eligible when they have been employed with the same employer at least for 3 consecutive months.

         

        Sick Leave Pay: An employee is entitled to receive pay at their regular wage.

         

        Medical Certificate: The employer may ask for a medical certificate if an employee has taken leave for more than 3 consecutive days signed by a medical practitioner certifying that the employee is or was unable to work due to illness or injury. Employment Standards Act, §22.2.

        Compassionate Care Leave

        An employee is entitled to receive up to 28 weeks of unpaid leave for the purpose of providing care and support to a family member of the employee. The employees must provide before or after taking the leave a copy of a certificate issued by a medical practitioner stating that a family member of the employee has a serious medical condition carrying with it a significant risk of death within 26 weeks to their employer.

         

        An unpaid leave of absence taken commences the first day of the workweek for which the certificate was issued; or where the unpaid leave of absence was commenced before the certificate was issued and ends when the unpaid leave of absence taken expires or if employee’s family member dies.

         

        An unpaid leave of absence taken may only be taken in periods of not less than one work week’s duration. The total amount of unpaid leave of absence that may be taken by two or more employees shall not exceed 28 weeks. Labor Standard Act, §22.3.

        Domestic Violence, Sexual Violence, Intimate Partner Leave

        An employee who has worked for a continuous period of 3 months or more, the employer shall grant the employee paid leaves of absence of up to 3 days, and leaves of absence without pay of up to 7 additional days, which the employee may choose to take intermittently or in one continuous period, during a twelve-calendar-month period, taken at the employee’s discretion. 

         

        The leave can be used by the employee who is the victim of domestic violence, intimate partner violence, or sexual violence or can be used by the employee to accompany a minor child or individual for whom they are a primary caregiver, for any of the specified reasons. Labor Standard Act, §22.4.

        Bereavement Leave

        An employee is entitled to receive on the death of a member of the immediate family or extended family of an employee a leave of absence of:

                • 1 day of paid leave and up to two consecutive days of unpaid leave, if the deceased person was a member of the immediate family of the employee; or
                • Up to 3 consecutive days of unpaid leave, if the deceased person was a member of the extended family of the employee.

        Where an employee, during the period of an annual leave, takes a paid day of leave the employer shall extend the employee’s annual leave by one working day. An employee must take leave only during the period of bereavement and shall commence not later than the day of the funeral or the memorial service of the deceased person. Labor Standard Act, §23.

        Reservist Leave

        An employee who is a member of the Reserves has been employed by the same employer in civilian employment for at least 6 consecutive months and has volunteered for service and, as a result, is required to be absent from work for the purpose of service, is entitled to an unpaid leave of absence in accordance with the purpose of service. The period of unpaid leave to which an employee is entitled is the period required to accommodate the period of service for which the employee is required to be absent from work.

         

        An employer who has granted unpaid leave to an employee shall permit the employee to resume work in the position occupied by the employee at the time such unpaid leave commenced or, if that position no longer exists, in a comparable position with not less than the same wages and benefits the employee would have received if the employee wasn’t granted the leave of absence.

         

        An employer is not obliged to pay pension benefits in respect of any period of unpaid leave granted to an employee. Labor Standard Act, §23.1.

        Court Duty Leave

        An employee has entitlement to a leave of absence without pay for any period that the employee is absent from work as a result of being:

                  • Summoned to serve on a jury;
                  • Selected to serve on a jury; or
                  • Served with a summons to attend at the hearing of the action, application or proceeding as a witness.

        Labor Standard Act, §23.2.

        Emergency Leave

        An employee is entitled to an unpaid emergency leave of absence for the duration of the time when the employee cannot perform the duties of the employee’s position because of the emergency.  An emergency leave continues as long as the emergency continues and prevents the employee from performing the employee’s work duties, and ends on the day the emergency is terminated or no longer prevents the employee from performing the employee’s work duties.

         

        An employee should inform the employer of their intent to take emergency leave as soon as reasonably possible. If they are required to leave before providing notice, they should promptly inform the employer once the emergency leave has commenced.

         

        An employee who takes emergency leave must, upon the employer’s request, provide reasonable evidence to confirm their entitlement to such leave. Notably, they are not obligated to furnish a certificate from a medical practitioner or nurse practitioner as part of this evidence. Employment Standards Act, § 22.5.

        Voting Leave

        An employee is eligible for not less than 1 hour paid off from work for the purpose of voting.

         

        An employer does not have an obligation to provide time off of work where the required number of consecutive hours falls outside an employee’s hours of work and within the voting hours. Election Act of PEI, § 81.

        Disclaimer: The material provided above is for informational purposes only and is subject to change. We endeavor to keep all material up-to-date and correct but make no representations about the information's completeness, accuracy, or reliability. Laws vary by jurisdiction and are subject to change and interpretation based on individual factors that may differ between organizations. The material is not meant to constitute legal advice and we suggest you seek the advice of legal counsel in connection with any of the information presented.