Holiday Pay in Ontario Explained
From the Employment Lawyers at Vanguard Law
As the holiday season rolls around, one question lands in our inbox at Vanguard Law more than almost any other:
“How exactly does holiday pay work in Ontario?”
Whether you’re an Ontario employer trying to stay compliant, or an employee wondering if your “stat pay” is correct, understanding public holiday pay under the Employment Standards Act, 2000 (ESA) is essential.
In this guide, we break down:
What counts as a statutory (public) holiday in Ontario
Who is entitled to holiday pay
How to calculate Ontario holiday pay
What happens if an employee works on a public holiday
Common employer mistakes we see at Vanguard Law
⚖️ This article is general information only and does not constitute legal advice. For advice about your specific situation, contact Vanguard Law.
1. What Is “Holiday Pay” in Ontario?
In Ontario, “holiday pay” (often called statutory holiday pay or public holiday pay) is the amount an eligible employee is entitled to be paid for a public holiday, even if they don’t work that day.
For most provincially regulated employees, public holiday entitlements are set out in the ESA. The ESA sets minimum standards – employers can offer more generous benefits, but not less.
Holiday pay is not the same as vacation pay. Holiday pay is tied to specific public holidays; vacation pay is tied to vacation entitlement.
2. What Are the Statutory (Public) Holidays in Ontario?
As of 2025, Ontario recognizes nine public holidays under the ESA:
New Year’s Day
Family Day
Good Friday
Victoria Day
Canada Day
Labour Day
Thanksgiving Day
Christmas Day
Boxing Day
Some employers also treat other days (such as the Civic Holiday or National Day for Truth and Reconciliation) as paid days off, but these are not ESA public holidays unless specifically written into an employment contract or policy.
3. Who Is Entitled to Holiday Pay in Ontario?
Under the ESA, most employees in Ontario who qualify as employees (not independent contractors) are entitled to public holiday pay, including:
Full-time employees
Part-time employees
Permanent and term employees
Many temporary employees
However, entitlement can be affected by:
(a) The “Last and First” Rule
To keep their entitlement to holiday pay, employees generally must:
Work their last regularly scheduled shift before the public holiday; and
Work their first regularly scheduled shift after the public holiday
…unless they had “reasonable cause” for missing the shift (for example, illness or an emergency). This is often called the “last and first” rule.
If an employee does not meet this rule and does not have reasonable cause, they may lose their holiday pay entitlement for that holiday (though they may still be entitled to premium pay if they work on that day – more on this below).
(b) Exemptions and Special Rules
Certain industries or roles have special rules or exemptions under the ESA – for example, some managers, professionals, and specific sectors may be treated differently.
If you’re unsure whether an employee is covered by Ontario’s public holiday rules, it’s best to get advice from an Ontario employment lawyer.
4. How to Calculate Ontario Holiday Pay (Stat Pay)
For most employees covered by the ESA, public holiday pay is calculated using this formula:
Public holiday pay =
Total regular wages earned in the 4 work weeks before the work week of the holiday
+ vacation pay payable for that same 4-week period
÷ 20
In plain language: add up regular wages + vacation pay payable in the four work weeks before the week the public holiday falls in, and divide by 20.
This formula is used whether the employee is paid hourly, salary, commission, or a combination.
Example: Full-Time Employee
Alex works in Ontario:
5 days a week
$200 per day
No vacation taken in the relevant 4 weeks
Regular wages in 4 work weeks:
$200 × 5 days × 4 weeks = $4,000
Vacation pay payable in that period:
$0 (no vacation taken and no lump-sum vacation pay during that period)
Public holiday pay:
($4,000 + $0) ÷ 20 = $200
So Alex’s statutory holiday pay for that public holiday is $200.
Example: Employee Paid Vacation on Every Paycheque
Sam works full time and earns $3,000 in regular wages in the relevant 4-week period. Sam’s vacation pay is 4% of wages and is paid on every paycheque.
Regular wages in 4 weeks:
$3,000
Vacation pay payable in that period (4%):
$3,000 × 0.04 = $120
Public holiday pay:
($3,000 + $120) ÷ 20 = $156
Sam is entitled to $156 in holiday pay for that public holiday.
5. Working on a Public Holiday: Holiday Pay vs Premium Pay
Some businesses – for example, hospitality, retail, health care, and tourism – may need employees to work on a public holiday.
In many cases, if an employee works on a public holiday and is entitled to the holiday, there are two main compensation options:
Option 1: Public Holiday Pay + Premium Pay
The employee gets:
Public holiday pay (calculated using the ESA formula), plus
Premium pay of at least 1.5 times their regular rate for every hour worked that day
This is sometimes called “time-and-a-half plus stat.”
Option 2: Regular Wages + Substitute Day Off with Holiday Pay
Alternatively, if the employee agrees in writing or electronically, they can receive:
Their regular wages for all hours worked on the public holiday, and
A substitute day off on another day, with public holiday pay for that substitute day
The substitute holiday generally must be taken within a certain period (typically within 3 months of the public holiday, or up to 12 months with proper written agreement).
6. Common Holiday Pay Mistakes in Ontario
At Vanguard Law, we regularly see employers (and payroll systems) make avoidable holiday pay errors. Here are some of the most common:
1. Forgetting to Include Vacation Pay
Under the ESA, you must include vacation pay payable in the calculation of public holiday pay for the relevant 4-week period. Many employers mistakenly use wages only.
2. Misapplying the “Last and First” Rule
Some employers:
Automatically deny holiday pay if an employee misses a shift,
Without considering whether the employee had reasonable cause, or
Applying the rule even when the employee is not scheduled before or after the holiday.
Both can result in ESA violations.
3. Misclassifying Employees as “Independent Contractors”
If someone is treated as an independent contractor but legally meets the test for an employee or dependent contractor, they may be entitled to ESA standards, including holiday pay. Misclassification is a major compliance risk in Ontario employment law.
4. Ignoring Special Rules in Policies and Contracts
Some employers offer better-than-ESA benefits for stat holidays in:
Employment contracts
Collective agreements
Employee handbooks or policies
But then payroll is still run using bare ESA minimums. That can expose employers to breach-of-contract claims, even if they’re ESA-compliant.
5. Failing to Document Agreements for Working on a Holiday
Where the ESA requires written or electronic consent (for example, to substitute a holiday), a verbal understanding is not enough. If there’s a dispute, lack of documentation tends to hurt the employer’s position.
7. Special Holiday Pay Situations
Holiday pay can get especially complicated when you add real-life factors like:
New hires who haven’t worked a full 4-week period
Employees who are on maternity or parental leave, or other job-protected leaves
Employees with irregular schedules or fluctuating hours
Employees who are terminated just before or after a public holiday
The ESA and its policy manual have detailed guidance on how to handle these scenarios, and the Ministry of Labour also offers an online holiday pay calculator and self-service tools to help estimate entitlements.
For employers, a quick check with an employment lawyer can be far cheaper than a miscalculation that impacts a whole team.
8. Holiday Pay and Remote Work / Hybrid Work
As remote and hybrid work has become more common, some employers wonder whether public holiday rules change if an employee works from home.
In most cases, the key questions are:
Is the employee covered by Ontario’s ESA?
Does the employee normally work in Ontario (or is their work “a sufficient connection” to Ontario)?
If yes, the fact that they work from home (even in another province or country) does not automatically remove Ontario public holiday pay obligations. This is an area where fact-specific legal advice is often necessary.
9. How Vanguard Law Can Help with Ontario Holiday Pay Issues
Holiday pay disputes often arise at the worst time – around Christmas, Boxing Day, or long weekends – when tensions are already high.
At Vanguard Law, our employment lawyers regularly advise both employees and employers across Ontario on:
Whether holiday pay and premium pay have been calculated correctly
How to handle employees who missed shifts around a statutory holiday
Drafting or updating holiday, vacation, and overtime policies
Responding to Ministry of Labour complaints or ESA claims
Resolving disputes about misclassification and entitlement
If you have questions about Ontario holiday pay or think there has been an error in your workplace:
👉 Contact Vanguard Law to schedule a consultation with an Ontario employment lawyer.
10. Quick FAQ: Ontario Holiday Pay
Q: Is Boxing Day a statutory holiday in Ontario?
Yes. Boxing Day is one of the nine ESA public holidays in Ontario.
Q: Do part-time employees get holiday pay in Ontario?
Generally yes, if they are ESA-covered employees and meet the eligibility rules (including the “last and first” rule). Their holiday pay is calculated using the same ESA formula, based on what they earned in the relevant four work weeks.
Q: Does an employer have to pay both holiday pay and premium pay if an employee works on a holiday?
Often, yes – unless the employee agrees in writing to receive regular wages for the hours worked plus a substitute day off with public holiday pay.
Q: Can an employee waive their right to public holiday pay?
The ESA sets minimum standards that generally cannot be contracted out of. An agreement that gives less than the ESA minimums is usually void and unenforceable.