First published on Monday, June 30, 2025
Last updated on Monday, June 30, 2025
Canada Day isn’t just a day to celebrate what it means to be Canadian; it’s also a statutory holiday. And for business owners it comes with a checklist of responsibilities you can’t afford to get wrong.
Whether you decide to stay open for business on July 1st or give your staff the day off, it’s crucial to know what employment standards for your jurisdiction dictate about employees working during statutory holidays.
Here’s a straightforward breakdown to help you stay compliant and keep your team happy (and properly compensated!)
Which employees qualify for the day off?
Under general employment standards, most Canadian workers are entitled to take Canada Day off with public holiday pay. To qualify, they must meet the last/first rule:
They must work their last scheduled shift before the holiday and their first scheduled shift after the holiday
If they miss one of those shifts but have a reasonable excuse, they can still be eligible
Failing to meet this rule without cause means forfeiting public holiday pay.
Can your employees choose to work Canada Day?
Say you operate a business such as a grocery store, and you decide to open for business on Canada day, you’ll probably need staff to work while everyone else is off.
If an employee does agree to work, you must have a written agreement stating so (either electronically or on paper). This agreement must be mutual; you can’t force them to work unless you’re in an exempt industry.
Other employees who aren’t automatically eligible for the day off during statutory holiday include professionals in the healthcare, retail, hospitality, and transportation sectors to name a few.
These industries may have different rules. If you’re not sure, it’s worth double-checking your industry's classification.
Your responsibilities to employees who work the holiday
If your employees agree to work on Canada Day, you’re legally obligated to provide them:
Public holiday pay plus premium pay (1.5× their regular hourly wage), or
Regular pay plus a substitute day off with holiday pay at a later date.
Make sure they agree to either of the above options in writing and you keep a record of it.
How substitute holidays work
When an employee works on Canada Day and chooses a substitute day off:
The substitute holiday must be taken within 3 months of Canada Day (or within 12 months if both parties agree in writing).
The pay calculation for their stat pay stays the same, it’s based on the 4 weeks leading up to the substitute holiday.
Remember: employers can’t arbitrarily decide what day the employee should take as their substitute day. It has to be agreed upon and documented.
Remember, paperwork is your best friend
Relying on informal, handshake or verbal agreements is risky and leaves you open to risks if an employee decides to file a claim.
Throughout the employment relationship, it’s important to have proper documentation. So, if employees agree to work on Canada Day or take a substitute holiday, get it in writing. This isn’t just best practice, it’s required under employment standards.
Proper documentation protects you in case of future disputes or audits. And with the right HR tools, it’s easy to manage.
Simplify your holiday management with BrightHR
Tracking eligibility, storing agreements, calculating entitlements including statutory holidays can be a real time-sink. That’s where BrightHR comes in.
Take the stress out of statutory holidays. Book your free demo today and see how BrightHR makes HR compliance easy this Canada Day and beyond.
