Ontario Stat Holidays | Paying Dispensary Employees

Ontario's statutory holiday rules were amended as of January 1st 2018, and although employee eligibility has remained the same, the method of Ontario's statutory holiday calculations may have been changed since you last checked!

Below, you'll find everything you need to know about Ontario's stat holidays, including how to pay your employees!
‍

How many statutory holidays does Ontario observe? 

Ontario observes nine statutory holidays throughout the year where employees are eligible to be off work with statutory holiday pay, or work with premium holiday pay or time off in lieu. 
‍

What are the statutory holidays in Ontario?

1. New Year's Day - January 1st
2. Family Day - Third Monday in February
3. Good Friday - Friday preceding Easter Sunday
4. Victoria Day - Last Monday preceding May 25th
5. Canada Day* - July 1st
6. Labour Day - First Monday in September
7. Thanksgiving Day - Second Monday in October
8. Christmas Day - December 25th
9. Boxing Day - December 26
   
   ‍

In addition to these nine holidays, employers should be aware of Remembrance Day (November 11th) and Civic Holiday (First Monday in August). These dates are not statutory holidays in Ontario, but some employers voluntarily observe the day. Most provincially regulated businesses still operate on these days and are not required to provide holiday pay. 

*If Canada Day falls on a Sunday, the following Monday is observed as the statutory holiday. It gets “bumped” to July 2nd, but this doesn’t happen again until July 2029, so you’ve got time.

Fun fact: Ontario is the only province in Canada that recognizes Boxing Day, December 26th, as a statutory holiday.

‍‍

How does an employee qualify for statutory holiday pay in Ontario?

To be eligible for stat holiday pay in Ontario, employees must follow the "first and last" rule. There are no restrictions on how long an employee has worked for an employer. The "first and last" rule means that employees must work their last regularly scheduled shift before the holiday as well as their first regularly scheduled shift after the holiday, unless they have permission by their employer to miss their shift. Failure to work the entire shift without reasonable cause may result in disqualification of holiday pay.
‍

• For example: Joe works Monday to Friday, and the next stat holiday falls on a Friday. Joe is scheduled to work on the Thursday before the holiday, and the Monday after the holiday. He must work these entire shifts to be eligible for stat pay. But Joe has requested Monday off to extend his weekend. His manager approves his request, therefore Joe is still eligible for stat pay.

‍

However, if Joe's request is not accepted, and he does not show up, then he will no longer receive stat pay for the holiday closure.

‍

‍

How do you calculate statutory holiday pay for Ontario employees?

Holiday pay is calculated by adding up the number of hours your employee has worked in the 4 work weeks prior to the holiday (including vacation pay, but not overtime) and dividing that by 20. This is the amount of holiday pay they would receive for the day.  

The four weeks before the public holiday is based on the employer’s work week. For example, instead of a Monday to Sunday work week, it could be a Sunday to Saturday work week.

Here's an example: In the last 4 weeks, Peter is paid $14/hour and worked 30 hours. As he also worked his last scheduled shift before the holiday and will be working the first shift after, he is eligible for both regular stat pay and premium stat pay should he be scheduled for the day.

• Regular wages earned in the last 4 weeks = $14 x 30 hours = $420 + $16.80 (vacation pay, paid out per cheque)
• $436.80 / 20 = $21.84 in regular stat pay

In total, Peter will be paid $21.84 in regular statutory pay, even if he does not work the holiday.
‍

Do part time employees get statutory holiday pay in Ontario?

They sure do! All full time and part time hourly employees are eligible to receive stat pay.  

What is the stat premium pay calculation?

In addition to Ontario holiday pay, employees who work on the day of the statutory holiday are also entitled to either:

• Premium pay. This is calculated at one and a half times the regular wage x the number of hours they worked. 

OR

• Their regular rate for the hours worked on the public holiday, plus a substitute paid day off work.

‍

You, as the employer chooses which of these options will apply.

Premium pay example:

Last pay period, Jane is paid $12/hour and works four 8 hour shifts. She also works an 8 hour shift on a stat holiday. She is eligible for both regular and premium stat pay.

To calculate her total stat pay:

• Regular wages earned in the last 4 weeks = $12 x 32 (8×4) hours = $384 + $15.36 (vacation pay, paid out per cheque)
• $399.36 / 20 = $19.97 in regular stat pay

PLUS

• 1.5 x ($12 x 8 hours) = $144 in premium pay
• In total, Jane will be paid $163.97 in statutory pay

‍

How can I automate stat holiday pay calculations?

Can you imagine how much time you would save if you could automate your holiday pay calculations? Well you can.  

‍KayaPush has created smart software that integrates with your staffing back end to automatically calculate stat holiday pay while scheduling and paying staff. Payroll and holiday calculations are done with the click of a button!

For further information on automating Ontario statutory holiday calculations, download our free guide! Or, connect with a helpful team member at KayaPush today.

‍

This document is provided by KayaPush for information purposes only. This is not an official or legal document and should not be taken as legal advice. KayaPush  does not guarantee or warrant the accuracy or completeness of the information provided. For the most accurate and up-to-date information, please check with the proper governing authority on Ontario stat holidays in 2022.