Employers urged to be prepared for Canada Day pay rules

As most Canadian employees prepare to celebrate Canada’s birthday with a long weekend, some employees are still on the clock on July 1, so employers are being reminded of changes that came into effect last year around Canada Day pay rules.

As part of both the Canada Labour Code and the Canada Labour Standards Regulations, it is no longer necessary for an employee in a federally regulated industry to have worked for 15 days before July 1. As long as the employee has worked 30 days with an employer, the employee is entitled to general holiday pay, according to a note from Norton Rose Fulbright LLP.

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It also noted that the changes that came in last year also affect the calculations of holiday pay. Employees are now entitled to 1/20th of their total earnings from the four-week period that precedes July 1.

The changes are slightly different across the provinces.

  • Quebec

The entitlements in Quebec are similar to federally regulated employees, says Norton Rose Fulbright, though the calculations are slightly different. However, most employees are entitled to 1/20th of the wages earned during the four complete weeks preceding the week of July 1, excluding overtime.

  • Ontario

All Ontario employees are entitled 1/20th of their regular wages earned and their vacation pay payable from the four weeks preceding the work week in which the Canada Day holiday occurs, as long as they have worked their last regularly scheduled day before and first regularly scheduled day after the holiday, or have a reasonable cause for not doing so, according to Norton Rose Fulbright.

  • Alberta

All employees in Alberta are entitled to receive their average daily wage if they have worked for the employer for at least 30 working days in the 12 months preceding July 1 and they have worked their scheduled shift before and after the holiday, unless otherwise consented to by the employer, says Norton Rose Fulbright.

The law firm notes that, in all jurisdictions there may be special rules for certain types of employees and in special situations, particularly with regard to the construction industry and employees paid by commission.

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