Managing employee leave and vacation entitlements in Canada involves navigating a framework of regulations set at both the federal and provincial/territorial levels. While the Canada Labour Code governs federally regulated industries, the vast majority of employees fall under provincial or territorial jurisdiction, each with its own specific labour standards acts. Employers must adhere to the rules of the province or territory where their employees are located, ensuring compliance with minimum requirements for vacation time, public holidays, sick leave, parental leave, and various other types of statutory leave. Understanding these diverse requirements is crucial for maintaining compliance and supporting employee well-being across different regions of the country.
These regulations establish minimum standards that employers must meet. Many companies choose to offer more generous leave policies than the statutory minimums to attract and retain talent, but they can never offer less than what the law requires in the relevant jurisdiction.
Annual Vacation Leave
Minimum vacation entitlements in Canada are typically based on an employee's length of service with an employer. While specific requirements vary by province and territory, the general principle is that employees earn vacation time and pay as they accumulate years of service. Federally regulated employees, for example, are entitled to a minimum number of weeks of vacation based on their tenure.
| Years of Service (Federal) | Minimum Vacation Entitlement | Minimum Vacation Pay Rate |
|---|---|---|
| 1 to 5 years | 2 weeks | 4% of annual wages |
| 6 to 9 years | 3 weeks | 6% of annual wages |
| 10+ years | 4 weeks | 8% of annual wages |
Provincial and territorial standards may differ. For instance, some provinces require 3 weeks of vacation after fewer years of service than the federal standard, and some require 4 weeks after a certain threshold. Vacation pay is typically calculated as a percentage of the employee's gross wages earned during the period for which the vacation is being taken.
Public Holidays
Canada observes several national statutory holidays, but provinces and territories also designate their own public holidays. Employees are generally entitled to a day off with regular pay on these holidays. If an employee is required to work on a public holiday, they are typically entitled to premium pay (e.g., 1.5 or 2 times their regular rate) plus a substitute day off with pay, or higher premium pay without a substitute day, depending on the jurisdiction and the employee's agreement.
Federal Public Holidays in 2025:
| Holiday | Date (2025) |
|---|---|
| New Year's Day | January 1 |
| Good Friday | April 18 |
| Victoria Day | May 19 |
| Canada Day | July 1 |
| Labour Day | September 1 |
| National Day for Truth and Reconciliation | September 30 |
| Thanksgiving Day | October 13 |
| Remembrance Day | November 11 |
| Christmas Day | December 25 |
Note that some provinces have additional holidays (e.g., Family Day/Louis Riel Day/Islander Day in February, Civic Holiday in August) or do not observe all federal holidays (e.g., Remembrance Day is not a paid statutory holiday in all provinces for all employees).
Sick Leave Policies
Statutory sick leave entitlements vary significantly across Canadian jurisdictions. Federally regulated employees are entitled to a minimum number of paid sick days per year. Many provinces also mandate a minimum number of unpaid or paid sick days, which may accrue over time.
Federal Sick Leave (Medical Leave with Pay):
- Employees accrue 3 days of paid medical leave after 30 days of continuous employment.
- After 30 days, employees accrue an additional 2 days at the start of each month, up to a maximum of 10 days per year.
- Unused paid medical leave days can be carried forward to the following year, counting towards the maximum 10 days for that year.
Provincial sick leave rules differ widely, covering varying numbers of days and conditions for pay. Some provinces mandate a few unpaid days, while others require a minimum number of paid days after a certain employment period.
Parental Leave
Parental leave in Canada is primarily facilitated through the federal Employment Insurance (EI) program, which provides income replacement benefits to eligible individuals taking time off work due to the birth or adoption of a child. The right to take this leave without losing one's job is protected by federal or provincial labour standards.
There are typically two types of parental benefits available through EI:
- Standard Parental Benefits: Up to 40 weeks of benefits are available, shared between parents. One parent cannot receive more than 35 weeks. The benefit rate is 55% of average insurable weekly earnings, up to a maximum amount.
- Extended Parental Benefits: Up to 69 weeks of benefits are available, shared between parents. One parent cannot receive more than 61 weeks. The benefit rate is 33.8% of average insurable weekly earnings, up to a maximum amount.
In addition to parental leave, the EI program also provides:
- Maternity Benefits: Up to 15 weeks of benefits are available to the birth mother. The benefit rate is 55% of average insurable weekly earnings, up to a maximum amount. These benefits are typically taken before or immediately after the birth and are separate from parental benefits.
- Adoption Leave: Covered under the parental leave provisions, allowing adoptive parents to claim standard or extended parental benefits.
The total combined weeks of maternity and parental benefits that can be taken by one or both parents for the same birth or adoption is capped (e.g., 57 weeks for standard, 86 weeks for extended, including the 15 weeks of maternity benefits). Eligibility for EI benefits depends on having accumulated sufficient insurable employment hours. Labour standards acts in each jurisdiction protect the employee's right to return to their job after taking these leaves.
Other Types of Leave
Canadian labour laws provide for various other types of statutory leave to accommodate different life events and responsibilities. The availability and specifics of these leaves vary significantly by jurisdiction. Common examples include:
- Bereavement Leave: Time off following the death of a family member. The duration (paid or unpaid) varies.
- Compassionate Care Leave: Leave to provide care or support to a critically ill family member with a significant risk of death. EI benefits may be available.
- Critical Illness Leave: Leave to provide care or support to a critically ill child or adult family member. EI benefits may be available.
- Leave Related to Domestic Violence: Time off for employees who are victims of domestic violence. Provisions vary by province.
- Jury Duty Leave: Time off to attend court for jury selection or duty. Typically unpaid, but job-protected.
- Reservist Leave: Leave for military reservists for training or active duty.
- Study Leave: Some jurisdictions may have provisions for leave for educational purposes, though this is less common as a statutory minimum.
- Sabbatical Leave: Generally not a statutory entitlement, but may be offered by employers as a benefit.
Employers must consult the specific labour standards legislation applicable to their employees' location to ensure compliance with all required types of leave and their associated conditions.
