Statutory holidays in Ontario: What employers must pay

Published 23 July 2026

Table of Contents

• Statutory holidays in Ontario 2026: Dates at a glance
• Statutory holidays in Ontario
• Who qualifies for public holiday pay
• How to calculate public holiday pay
• When employees work on a public holiday
• When the holiday falls on a non-working day or during vacation
• How overtime and terminations affect holiday pay
• Employer checklist for Ontario stat holiday compliance
• Simplify Ontario holiday payroll with Xero
• FAQs on statutory holidays in Ontario

Key takeaways

• Ontario recognizes 9 Employment Standards Act (ESA) public holidays each year. Civic Holiday and Easter Monday fall outside this list.
• Employees must meet the last-and-first rule to qualify for public holiday pay. This means working their last scheduled shift before and first shift after the holiday.
• Public holiday pay is calculated using a 4-week averaging formula that includes regular wages and vacation pay but excludes overtime premiums.
• When employees work a public holiday, you must pay either premium pay or provide a substitute day off with public holiday pay.

Statutory holidays in Ontario 2026: dates at a glance

Ontario's Employment Standards Act (ESA) recognizes 9 public holidays each year. Here are the exact dates for 2026.

Some days that many employers and employees expect to be stat holidays—including Civic Holiday (3 August 2026), Easter Monday, and the National Day for Truth and Reconciliation (30 September)—are not ESA public holidays in Ontario. You're not required to pay staff for these days unless your employment contract or collective agreement says otherwise.

What are the statutory holidays in Ontario?

Statutory holidays (often called stat holidays or public holidays) are days recognized under the Employment Standards Act (ESA) when most employees in Ontario are entitled to paid time off. If you run a small business in Ontario, you need to understand which holidays qualify, how to calculate what you owe, and how to document your decisions.

Ontario recognizes nine ESA public holidays:

• New Year's Day (1 January)
• Family Day (third Monday in February)
• Good Friday (Friday before Easter Sunday)
• Victoria Day (Monday on or before 24 May)
• Canada Day (1 July)
• Labour Day (first Monday in September)
• Thanksgiving Day (second Monday in October)
• Christmas Day (25 December)
• Boxing Day (26 December)

A few days that many people assume are statutory holidays in Ontario, such as Civic Holiday (first Monday in August), Easter Monday, and National Day for Truth and Reconciliation (30 September), fall outside the ESA public holiday list. That means you're not required to pay staff for these days unless your employment contracts or collective agreements say otherwise.

Where to confirm current-year dates

Holiday dates shift slightly each year. For example, Victoria Day is always the Monday on or before 24 May, so the exact date changes. Check the Ontario government's public holidays page to confirm this year's calendar.

If you operate in a federally regulated industry, such as banking, telecommunications, or interprovincial transport, your employees follow a different federal holiday list. Visit the Government of Canada's public holidays page to see which days apply to federally regulated workplaces.

Who qualifies for public holiday pay?

Many employees receive paid time off on a public holiday. The ESA sets out clear rules, with some exceptions based on industry, role, and work patterns. Understanding who qualifies helps you avoid costly compliance mistakes.

ESA coverage and the last-and-first rule

Most employees in Ontario are covered by the ESA and entitled to public holiday pay if they meet the last-and-first rule. This rule states that an employee must work both their last scheduled shift before the public holiday and their first scheduled shift after the holiday—or have reasonable cause for missing either shift—to qualify for stat holiday pay.

For example, if a public holiday falls on a Monday and an employee is scheduled to work the Friday before and the Tuesday after, they must work both of those shifts (or have reasonable cause for missing one) to receive public holiday pay. If they skip Friday without a valid reason, they lose their entitlement to paid time off on Monday.

What counts as reasonable cause?

Reasonable cause covers events outside an employee's control. Common examples include:

• Illness or injury (with a note from a healthcare provider if you request one)
• Family emergency (death of a close relative, urgent childcare issue)
• Severe weather or transportation breakdown that prevents the employee from reaching work
• Jury duty or court summons

Keep simple documentation—an email from the employee explaining the absence, a doctor's note, or a text confirming the emergency—so you can show you applied the rule fairly if ever audited.

Do special industry rules apply?

Yes. Certain sectors have modified scheduling and substitute-day provisions. For instance:

• Hospitality and tourism: Hotels, restaurants, and event venues often operate on public holidays. Staff may work the holiday and receive a substitute day off later.
• Hospitals and continuous-operation facilities: Healthcare and emergency services may schedule rotating holidays or offer premium pay instead of a day off.
• Retail: Stores open on holidays must follow specific rules about premium pay or substitute days.

If you're in one of these sectors, review the ESA's sector-specific exemptions and special rules to confirm your obligations. If you're unsure what applies, speak with an employment lawyer or HR advisor who knows Ontario labour law.

How do you calculate public holiday pay?

Calculating public holiday pay correctly protects you from penalties and ensures your team is compensated fairly. The ESA prescribes a specific formula based on a four-week averaging method.

Step-by-step calculation

Follow these 4 steps to calculate what you owe an eligible employee:

• Identify the 4-week period: Count back 4 complete work weeks before the week containing the public holiday.
• Total regular wages: Add up all regular wages the employee earned during those four weeks. Include hourly pay, salary, and any vacation pay paid or accrued in that window. Do not include overtime premiums or bonuses.
• Count days worked: Tally the number of days the employee actually worked in the four-week period.
• Divide: Public holiday pay = (Total regular wages + vacation pay) ÷ number of days worked.

Example: An employee earns $20 per hour and worked 16 days over the past four weeks, earning $2,400 in regular wages plus $96 in vacation pay (4% of wages). Public holiday pay = ($2,400 + $96) ÷ 16 = $156.

If the employee has variable hours—for instance, a part-time retail associate who works different shifts each week—you still use the same formula. Just total the actual wages and days worked in the four-week window. If the employee earned zero regular wages in that period (for example, they were on unpaid leave), the public holiday pay may be $0.

Do I include vacation pay?

Yes. If you pay vacation pay on each paycheque (for example, 4% added to gross wages), include that amount in the four-week total. If you accrue vacation pay and pay it out later, include the vacation pay that was earned during the four-week period, even if you haven't paid it yet.

How do I handle part-time or variable hours?

The formula is the same whether an employee works full-time, part-time, or irregular shifts. You simply divide total wages by the number of days actually worked. If someone worked only two days in the four-week period, you divide by two. If they worked 20 days, you divide by 20. This approach ensures fairness across different schedules.

Note: This is general guidance. For complex scenarios—such as employees on commission, multiple pay rates, or extended leaves—consult the ESA directly or speak with a payroll specialist.

What if employees work on a public holiday?

Many Ontario businesses operate on public holidays. Retail stores, restaurants, and service providers often need staff on Canada Day, Thanksgiving, or Boxing Day. When an employee works a stat holiday, you have two options under the ESA.

When does premium pay apply?

If an employee works on a public holiday and you do not give them a substitute day off, you must pay:

• Public holiday pay (calculated using the four-week formula above), plus
• Premium pay for each hour worked on the holiday (1.5 times their regular hourly rate).

Example: An employee's public holiday pay is $120 and they work 6 hours on the holiday at $18 per hour. Premium pay = 6 hours × $18 × 1.5 = $162. Total pay for the holiday = $120 + $162 = $282.

When do I give a substitute holiday?

If an employee works the public holiday and you do provide a substitute day off, you pay:

• Regular wages for the hours worked on the holiday (no premium), plus
• Public holiday pay on the substitute day.

The substitute day must be scheduled before the employee's next annual vacation or within three months of the public holiday, whichever comes first. Record the date in writing and keep it with your payroll files.

Do I need a written agreement?

Yes. Before asking an employee to work a public holiday, get their agreement in writing or electronically. This can be an email, a signed schedule, or a note in your scheduling software. Keep the agreement on file in case of an audit or complaint. The agreement should confirm that the employee understands they will work the holiday and will receive either premium pay or a substitute day off.

What if the holiday falls on a non-working day or during vacation?

Sometimes a public holiday lands on a day when an employee wouldn't normally work—for example, a Saturday or Sunday for someone with a Monday-to-Friday schedule. Other times, a holiday occurs while an employee is on vacation. Here's how to handle both situations.

Holiday on a non-working day

If the public holiday falls on a day the employee is not scheduled to work, and they are otherwise eligible (they meet the last-and-first rule), you must give them a substitute day off with public holiday pay. The substitute day should be scheduled before their next annual vacation or within three months of the holiday, whichever is earlier. Document the substitute day in writing and pay public holiday pay on that day.

Holiday during vacation

If an employee is on vacation when a public holiday occurs, they are entitled to an additional day of vacation or a substitute day off with public holiday pay. In other words, the public holiday does not count as one of their vacation days. Adjust their vacation balance or schedule a substitute day and document the change.

How do overtime and terminations affect holiday pay?

Two common questions arise around stat holidays: how premium pay interacts with overtime, and what happens if an employee's job ends near a public holiday.

Overtime and premium pay

When an employee works on a public holiday, you pay premium pay (time-and-a-half for hours worked) in addition to public holiday pay. If those hours also push the employee over 44 hours in the work week, you might wonder if you owe overtime on top of premium pay.

The answer: No double-counting. Premium pay for working a public holiday satisfies the overtime requirement for those hours. You calculate overtime separately for any additional hours beyond 44 in the week that were not worked on the public holiday. For guidance on calculating overtime correctly, refer to the Ontario Ministry of Labour's resources on overtime rules.

Example: An employee works 8 hours on a Monday public holiday and 40 hours Tuesday to Friday (48 hours total for the week). You pay public holiday pay + premium pay (8 hours × 1.5 × hourly rate) for Monday, and overtime (4 hours × 1.5 × hourly rate) for the 4 hours over 44 worked Tuesday to Friday.

Terminations and final pay

If you end an employee's job or they resign close to a public holiday, they may still be entitled to public holiday pay if they meet the last-and-first rule on their final day. For instance, if an employee's last day is the Friday before a Monday holiday and they worked their last scheduled shift, they qualify for public holiday pay on that Monday. Include the public holiday pay in their final paycheque or Record of Employment.

Conversely, if the employee is terminated after the public holiday and they worked their last shift before the holiday but were not scheduled to return after (because they were terminated), they still receive public holiday pay for the holiday that occurred during their notice period or final week.

When in doubt, calculate the entitlement based on the four-week formula and the last-and-first rule, then document your decision. If you're unsure, consult a payroll specialist or employment lawyer before issuing the final pay.

Employer checklist for Ontario stat holiday compliance

Use this step-by-step checklist before each public holiday to ensure you schedule, calculate, and document public holiday pay correctly.

• Confirm the holiday and your operating plan: Check the Ontario public holidays calendar to verify the exact date. Decide whether your business will be open or closed. If you're federally regulated, confirm the federal holiday list instead.
• Check eligibility using the last-and-first rule: Identify which employees are scheduled to work the last shift before and the first shift after the holiday. Note any absences and confirm whether the employee has reasonable cause (illness, emergency, etc.). Document your findings.
• Gather four-week wage and vacation pay data: Pull payroll records for the four complete work weeks before the holiday week. Total regular wages and vacation pay for each eligible employee. Count the number of days each employee worked in that period.
• Calculate public holiday pay: Divide (regular wages + vacation pay) by the number of days worked. If an employee will work the holiday, decide whether you'll pay premium pay or schedule a substitute day, and get written agreement from the employee.
• Record agreements to work and substitute day details: Save emails, signed schedules, or electronic confirmations. Note the substitute day date in your payroll system and the employee's file.
• Review overtime to avoid double-counting premium hours: If the employee works the holiday and exceeds 44 hours in the week, calculate overtime separately for non-holiday hours. Do not apply overtime to hours already paid at premium rate.
• Post entries correctly and file your records: Enter public holiday pay, premium pay, or substitute day pay in your payroll system. Keep all documentation (eligibility notes, agreements, calculations) for at least three years in case of an audit.

Annual reminder: Verify the exact dates for Victoria Day (Monday on or before 24 May), Thanksgiving (second Monday in October), and other floating holidays each year. Double-check current-year public holiday dates in January and update your payroll calendar.

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FAQs on statutory holidays in Ontario

This section answers common questions Ontario employers have about statutory holiday pay, eligibility, and compliance under the Employment Standards Act.

Is Civic Holiday a statutory holiday in Ontario?

Civic Holiday (the first Monday in August) is outside the ESA public holiday list in Ontario, so you only need to pay staff for it if an employment contract or collective agreement includes it as a paid day.

Is September 30 a statutory holiday in Ontario?

The National Day for Truth and Reconciliation (30 September) is a federal statutory holiday, so you only need to treat it as a paid holiday if your employees are federally regulated or your employment agreements commit to paying for it.

Do new hires qualify for public holiday pay?

Yes, if they meet the last-and-first rule. A new employee who has worked their last scheduled shift before the holiday and is scheduled to work their first shift after the holiday qualifies for public holiday pay. The four-week calculation may be shorter if they haven't been employed for four full weeks; in that case, you average the wages and days worked since their start date.

Do commissions and bonuses affect public holiday pay?

Discretionary bonuses (such as a holiday gift or employee-of-the-month award) are not included in the public holiday pay calculation. Non-discretionary bonuses and commissions that are part of regular wages are included. For example, if an employee earns a monthly sales commission, include the portion earned in the four-week period when calculating public holiday pay. If you're unsure whether a payment is discretionary, consult a payroll specialist or employment lawyer.

Do contractors get statutory holiday pay in Ontario?

No. Independent contractors are not employees under the ESA and are not entitled to public holiday pay. If you've classified a worker as a contractor but they meet the ESA definition of an employee, you may owe them stat holiday pay and other entitlements. Misclassification can lead to penalties and back pay. Review the ESA's guidance on employee versus contractor status or consult a lawyer if you're uncertain.

What if an employee calls in sick the day before the holiday?

If the employee provides reasonable cause for the absence—such as illness supported by a doctor's note—they still qualify for public holiday pay under the last-and-first rule. Document the reason for the absence (email, text, or note) and apply the rule fairly. If the absence is unexplained or the employee provides no reasonable cause, they may lose their entitlement to public holiday pay.