Happy 151st birthday  Canada!

Usually, July 1st marks Canada Day – but this year, Canada Day is observed on July 2nd. This doesn’t mean Canada Day celebrations will be moved to July 2nd. But rather,  premium statutory holiday pay, and statutory holiday eligibility will be observed on July 2nd.

Due to Canada’s Holidays Act Subsection 2(2), as Canada Day falls on a Sunday, July 2 (the following Monday) will be observed as Canada Day.

What does this mean?

For hourly employees, those who are eligible for premium statutory pay, also known as general holiday pay, will be paid 1.5x their regular rate on July 2nd 2018. Meaning, July 2nd is the date used to observe whether or not employees are eligible for regular general holiday pay.

For example, using the first and last day worked rule in Ontario:

  • Joe is scheduled to work June 30th, July 1st, and July 3rd.  He works all three shifts, making him eligible for general holiday pay. But he is not eligible for premium holiday pay, as he did not work July 2nd.
  • In the last four weeks prior to the holiday, Joe worked 120 hours at the rate of $15 hourly.

His general holiday pay will be calculated as follows:

  • 120 hours x $15 = $1800 + $72 vacation paid out per cheque
  • $1872 / 20 = $93.60 in general holiday pay

If he had worked July 2nd 2018, he would receive a premium rate of 1.5x his regular rate.

  • 8 hours x ($15 x 1.5) = $180 premium pay
  • = $252 in general and premium stat holiday pay

In short, all this means is that hourly employees will be paid a premium rate on July 2nd 2018, if they are eligible for general holiday pay.

Why does this matter?

For some, businesses purposely close on holidays. Some,  for reasons like having a location in a low traffic area on holidays  or other who are looking to save on labor costs. Premium pay is not a small expense! Especially for provinces that pay an average day’s wage.

Canada Day is the only holiday of the year that has the “Sunday” exception, and it’s rules can be a little tricky. Therefore, staying informed is the best way to be on top of compliance and labor standards!

Lucky for you, our team at Push Operations is always ahead of the ball for labor standards and compliance! Here’s everything you need to know about stat holidays for the provinces below:

Don’t have time to read it all now? Download our our Canadian Stat Holiday eBook below!


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Disclaimer:

This document is provided by Push Technologies Inc. (“Push Operations”) for information purposes only. This is not an official or legal document and should not be taken as legal advice. Push Operations 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.

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