Regulated Holidays explained
Public holidays can get confusing fast—especially if you have a mix of Ontario-regulated employees, federally regulated employees, part-timers, and contractors. This guide breaks down who gets what time off, when premium pay applies, how public holiday pay is calculated, and how contractors fit in.
Quick primer: which rules apply?
Ontario-regulated (most workplaces in Ontario): The Employment Standards Act (ESA) sets the holiday rules.
Federally regulated (banks, airlines, interprovincial trucking/rail, telecom, broadcasting, postal/courier, many Crown corps, certain First Nations band councils, etc.): The Canada Labour Code (the “Code”) sets the rules.
Which days are covered?
Ontario (ESA): 9 public holidays — New Year’s Day, Family Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving Day, Christmas Day, Boxing Day.
Commonly observed but not ESA stat days: Easter Monday, the August Civic Holiday, Remembrance Day, National Day for Truth and Reconciliation.Federal (Code): 10 general holidays — New Year’s Day, Good Friday, Victoria Day, Canada Day, Labour Day, National Day for Truth and Reconciliation, Thanksgiving Day, Remembrance Day, Christmas Day, Boxing Day.
Who’s actually covered?
Employees (full-time, part-time, casual, hourly, salaried, commissioned) are covered at both levels, with only narrow industry/role-specific exceptions.
Independent contractors are not covered.
Ontario (ESA): eligibility, time off, and pay
1) Eligibility (the “last-and-first” rule)
Most employees qualify unless they fail, without reasonable cause, to work:
their last scheduled workday before the holiday, and/or
their first scheduled workday after the holiday.
Reasonable cause includes things like illness or injury.
2) If you don’t work the holiday
If it would have been a working day for you: you get public holiday pay for the day off.
If it’s not a working day (or you’re on vacation): you get a substitute day off with public holiday pay; or, if you agree in writing, you can take public holiday pay only with no substitute day.
Substitute days must be set within 3 months of the holiday (or within 12 months if you agree in writing). The employer should give you a written note confirming the swap and date.
3) If you work the holiday
Two lawful options (one must be clearly documented; in many cases it requires written agreement):
Option A: Public holiday pay + premium pay (time-and-a-half) for the hours worked (no substitute day); or
Option B: Regular pay for hours worked + a substitute day off with public holiday pay later.
If you agreed to work but don’t show (and don’t have reasonable cause): you’re only entitled to premium pay for any hours actually worked—no public holiday pay or substitute day.
4) How to calculate Ontario public holiday pay
Add up regular wages + vacation pay payable in the 4 workweeks before the week of the holiday, then divide by 20. (Overtime premium isn’t included in this average.)
5) Premium pay in Ontario
“Premium pay” = 1.5× the regular rate for each hour worked on the public holiday.
Federally regulated (Canada Labour Code): eligibility, time off, and pay
1) The 10 general holidays
See list above. Note: Boxing Day and National Day for Truth and Reconciliation are federal general holidays.
2) If you don’t work the holiday
If it falls on a working day: you get a paid day off (“general holiday pay”).
If it falls on a non-working day: you’re still entitled to a paid day off on another day.
For New Year’s Day, Canada Day, National Day for Truth and Reconciliation, Remembrance Day, Christmas Day, Boxing Day falling on a weekend, the paid day off is the immediately preceding or following working day.
For other general holidays falling on your non-working day, the paid day off can be added to vacation or taken on another mutually convenient day.
3) If you work the holiday
You get general holiday pay plus at least 1.5× your regular wage for the hours worked (no extra day off).
In continuous operations (24/7 sectors), employers can require work on general holidays; if you work, you’re still paid at least 1.5× for the hours plus general holiday pay. (Some collective agreements allow a different structure—e.g., regular pay for hours worked and a paid day off later.)
4) How to calculate federal general holiday pay
Most employees: at least 1/20 of wages (excluding overtime) earned in the 4 weeks before the week of the holiday.
Commission-heavy pay with 12+ weeks’ service: often 1/60 of wages (excluding overtime) earned in the previous 12 weeks.
Part-time: entitled too; the amounts scale with hours/wages.
“Do I have to work?” / “What if I want to work?”
Ontario: Work on a public holiday is generally by agreement, except in specific sectors (e.g., hospitals, hospitality, continuous operations) where employees can be required to work if the holiday falls on a day they would ordinarily work. If you’re scheduled to work and don’t show without reasonable cause, you can lose the holiday pay (and face discipline). If you’re not scheduled, there’s no right to just “show up” and claim premium pay—you need employer agreement/scheduling.
Federal: The Code doesn’t prohibit work on general holidays. Continuous operations can require it. If you work, you get holiday pay + 1.5× for the hours. If you don’t work and the holiday applies, you still get the paid day off (or the proper substitute day).
Does employee “type” change anything?
Full-time vs. part-time/casual: Both levels cover part-timers; calculations are prorated by earnings.
Hourly vs. salary vs. commission: All can qualify; the calculation method differs (Ontario uses the 4-week/÷20 average; federal uses 1/20 or 1/60, excluding OT).
Managers/professionals: Not an exemption from holiday rights (though there can be overtime/other exemptions).
Unionized: Collective agreements can enhance or structure entitlements, but cannot go below ESA/Code minimums.
Specific occupations: Ontario has some narrow exemptions/special rules; check your sector if it’s unusual.
Leaves/layoffs/vacation:
Ontario: If a stat falls during your vacation or on a non-working day, you get a substitute day with public holiday pay (or pay only, if you agree in writing).
Federal: If a general holiday falls on a non-working day, you’re owed a paid day off (with special weekend rules for the six holidays listed earlier). Certain paid leaves under the Code don’t reduce the holiday entitlement.
Contractors: do they get holiday pay?
Independent contractors: No. Statutory holiday rules apply to employees.
Practical tip: If you control how, when and where someone works, they use your tools, and they rely on you economically, get legal advice—this often points to employee status.
Handy examples
Ontario – didn’t work:
Jenna’s regular working day is Monday. Thanksgiving Monday is a public holiday. She doesn’t work. She gets public holiday pay for the day off.
Ontario – worked the holiday:
Ray works 8 hours on Canada Day. By agreement, he gets public holiday pay + 1.5× for 8 hours (no substitute day). Alternatively, he could receive regular pay for 8 hours + a paid substitute day later.
Federal – didn’t work; weekend holiday:
Boxing Day falls on a Saturday. Tina normally works Mon–Fri. She gets a paid day off on Friday or Monday (the immediately preceding or following working day).
Federal – worked the holiday:
Sam works 6 hours on Remembrance Day. He gets general holiday pay plus 1.5× for 6 hours (no extra day off).
Employer checklist
Identify who’s provincial vs. federal.
Confirm status (employee vs contractor).
For Ontario, track the last-and-first rule and ensure written documentation when swapping in a substitute day or choosing the premium-pay option.
Configure payroll to use the correct formula (Ontario 4-week/÷20; federal 1/20 or 1/60, excluding OT).
In continuous operations, plan staffing early and keep clear records of who worked (and at what rate) vs. who took the paid day.
For part-timers and commissioned staff, ensure the right averaging window and inclusions/exclusions.
Employee quick tips
Ask which regime applies to you (ESA vs. Code).
Keep your schedule commitments—the last-and-first rule matters in Ontario.
If asked to work a holiday, get the compensation option (premium vs. substitute day) in writing.
Contractors: if your “contractor” role looks and feels like a job, ask about status—holiday pay may be owed.
Bottom line
Ontario: most employees get the day off with public holiday pay; if they work, it’s holiday pay + 1.5× or regular pay + a paid substitute day—and Ontario uses the 4-week/÷20 formula.
Federal: there are 10 general holidays; if you work, you get holiday pay + 1.5× (no extra day off); if you don’t, you get the appropriate paid day off (with special weekend rules).
Contractors don’t get statutory holiday rights—unless they’re really employees.
This article is legal information, not legal advice. For advice on your specific situation, contact Vanguard Law.