Statutory Holiday Information
Holidays for businesses and their employees are not always the same, and that always brings questions from employers, business operators, and consumers on what can be open, what cannot be open, and what legal obligations exist between management and staff. We are happy to share the following information as a reference guide for local businesses.
While all businesses are subject to the Ontario Employment Standards Act (ESA), retail, service, hospitality, and related businesses must also consider the provisions of the Retail Business Holiday Act (RBHA) and its affect on the ability of a business to be open to the public.
What are the Public Holidays?
From a business perspective, the answer depends on whether the business is governed by federal or provincial labour law. For example, many in the transportation, banking, and communications fields are regulated under federal law, which has slightly different provisions than Ontario law. Since most local businesses are the subjects of Ontario law, the following information is based on the laws of this province.
The Province of Ontario recognizes nine paid statutory holidays every year:
- New Year’s Day
- Family Day
- Good Friday
- Victoria Day
- Canada Day
- Labour Day
- Thanksgiving Day
- Christmas Day
- Boxing Day
Of these holidays, some are observed strictly on a specific date no matter what day of the week they happen to fall on. New Year’s, Canada Day, Christmas, and Boxing Day are observed as they occur. Family Day occurs on the third Monday of February. Good Friday is perhaps the most confusing to calculate as the date is fixed according to the lunar cycle each year. The Victoria Day holiday is the first Monday before May 24th and Labour Day is always the first Monday in September.
Chamber members should also understand that changes are often made in legislation. Periodic reviews are recommended. For a comprehensive guide to Ontario’s Employment Standards Act, consult the Ontario Ministry of Labour website.
Can Businesses Be Open on a Holiday?
Not all statutory holidays are business holidays.
The differences occur in the Christmas season. The RBHA affects retail businesses plus some service and hospitality businesses on a total of nine public holidays each year. Retail stores must be closed on the following days:
- New Year’s Day
- Family Day
- Good Friday
- Easter Sunday
- Victoria Day
- Canada Day
- Labour Day
- Thanksgiving Day
- Christmas Day
The RBHA requires businesses to be closed on Christmas Day, December 25, and New Year’s Day, January 1, but in 1996 the rules changed concerning Boxing Day. Legislation passed in Ontario in December 1996 allows stores to be open on Boxing Day, regardless of what day of the week it may fall. Beyond legal considerations of opening and closing, businesses must also consider their obligations to employees. Boxing Day, for example, is still considered a public holiday and special provisions regarding rates of pay and/or time off work apply.
Statutory Holiday Pay
On May 7, 2018 the government of Ontario announced that, following feedback and discussions with stakeholders, it will undertake a review of the public holiday system of theEmployment Standards Act. The review will be conducted in 2018 by the Ministry of Labour and forms part of the Ontario government’s on-going review of the province’s labour and employment legislation.
As an interim measure, while the review takes place, the government will be reinstating the previous holiday pay system, effective July 1, 2018.
The chamber was one of many voices that expressed concern regarding the public holiday pay system introduced by Bill 148, and welcomes the government’s decision to review the legislation and reinstate the previous system. Under Bill 148’s changes, for a statutory holiday, employers would be required to pay employees the total wages earned during the previous pay period divided by the number of days worked. This led to some employers paying their part-time employees more than their full-time employees on statutory holidays.
Read the government’s announcement here.