Prince Edward Island Employee Vacation & Stat Holiday Entitlement is our 9th post in The Payroll Edge series “Employee Vacation & Stat Holiday Entitlement” where we outline Canadian employment compliance standards by province to assist you in hiring and paying a Canadian worker.
As a PEO in Canada, who partners with U.S. and foreign based companies looking to hire workers in Canada, we`re often asked about whether there`s a difference in statutory holiday`s and vacation pay entitlements between our 13 provinces and territories. Every province and territory in Canada has variable holidays and different eligibility rules around paying the Canadian employee for time off. These rules apply to part time, full time, hourly and salaried employees.
The following information was sourced from and is set out by the Government of Prince Edward Island.
Stat Holidays in Prince Edward Island
The island of PEI has 7 public paid holidays, they are:
- New Year’s Day on January 1st
- Islander Day on the 3rd Monday in February
- Good Friday before Easter Sunday
- Canada Day on July 1st
- Labour Day on the 1st Monday in September
- Remembrance Day on November 11th
- Christmas Day on December 25th
Public statutory holidays are paid holidays in Canada, but there are a few exceptions and not every employee is entitled to them. The first exception is an Islander employee must have worked 15 out of the previous 30 days preceding the public holiday.
Secondly, an employee in PEI must have been employed in the previous 30 days leading up to the holiday.
Finally, an employee must have worked their regularly scheduled shift before and after the holiday. For instance, if the employee normally works Monday to Friday and the stat holiday falls on a Monday, they would have had to report to work on the Friday and Tuesday to qualify for an unworked and paid holiday on the Monday.
How much pay does a Prince Edward Islander employee get for an unworked paid holiday?
If the employee meets the above criteria to be paid for a statutory holiday, they are entitled to a regular days pay. If the employee's hours of work change from day to day, or if wages change from pay to pay, the employer could average hours or wages over 30 previous days to calculate what to pay the employee for the holiday.
How much pay does a PEI based employee get for working on public holiday?
An employee can be compensated for working on a public paid stat holiday in one of two ways; they can opt to get one and a half times their regular rate of wages for the hours worked on the stat holiday, or they can receive their regular earnings for the day worked and get an alternate day off with regular pay for the unworked day.
Vacation Pay and Entitlement
Vacation pay entitlements as set out in Prince Edward Islands Employment Standards Act does not apply to unionized workers, farm workers or salespersons whose incomes are primarily earned through commission of sales.
PEI based workers with less than 8 consecutive years of employment at one workplace are entitled to:
- 2 weeks of annual vacation time after 12 months of employment at a vacation pay rate of 4%
PEI based workers with 8 years or more of consecutive employments at one workplace are entitled to:
- 3 weeks of annual vacation time after 12 months worked at a vacation pay rate of 6%
Vacation pay can be calculated to include only the employee’s regular earnings, overtime pay, commissions and bonuses. Vacation pay rate calculation should not include: public holiday pay or tips or gratuities.
The above mentioned guidelines are simply minimum standards as set out by the Government of PEI; employers can give more generous entitlements to their employees at their discretion. Sometimes, contracting the services of a PEO in Canada is the best bet for American employers hiring Canadians. Our expertise spans all levels of employment law compliance, workers compensation, independent contractor compliance and so much more. Take the burden of hiring Canadians off your shoulders and focus on forecasting your Canadian expansion instead.
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