Employer obligations during Labour Day

Labour Day isn’t just the unofficial end of summer; it’s a statutory holiday that comes with clear rules for employers across Canada.

 So, whether you run a bistro gearing up for a busy weekend of Labour Day brunches or a small office preparing to close for the long weekend, it’s crucial to understand your legal obligations and master staff scheduling so you can avoid costly mistakes. 

Plus, according to BrightHR data, taken from over 9,000 Canadian businesses, it’s also one of the most booked-off times of the year, as more than 2,000 employees were off on vacation during the Labour Day weekend last year.

What is Labour Day in Canada?

Before we dive into your obligations as a Canadian employer, let’s take a quick look at what Labour Day is.

Observed every first Monday of September, Labour Day is a celebration of Canadian workers' contributions to the country and marks a historic win for the labour movement. This year, it falls on Monday September 1st. 

But the long weekend is also a major retail and tourism event. Many Canadians flock to cottages for last-chance summer getaways, and some businesses see increased customer demand. That's why planning your schedules well in advance should be at the top of your to-do list if you want to remain productive, make the most increased demand and avoid understaffing.

What are my obligations as an employer on Labour Day?

You’ll need to do more than lock up your business on Labour Day. If you want to stay on the right side of the law, here’s a quick summary of employer must-knows before the long weekend arrives:

• Statutory holiday pay – Most of your employees are entitled to holiday pay for Labour Day, meaning they get paid even if they don’t work that day.

• Eligibility rules – Many provinces follow the “last and first” rule: employees must work their last scheduled shift before and their first scheduled shift after Labour Day to qualify for a paid day off, unless they have a reasonable excuse.

• Working on Labour Day – If your business is open and staff are scheduled to work, you’ll have to pay them premium pay (often 1.5 times their regular rate) in addition to holiday pay, or offer them a different day off, depending on your province or your agreement with the employee.

• Exceptions – Some essential industries, like hospitality and emergency services, may have different rules around working on Labour Day. Always check your provincial employment standards to be sure what rules apply to your business.

Tips for efficiently managing scheduling & operations during the long weekend

Labour Day is one of the most popular long weekends of the year, and many of your staff will likely request the Friday before (August 29th) or the Tuesday after (September 2nd) off, so it’s important to set expectations for booking time off early. 

Whether you're staying open or shutting down this long weekend, getting ahead of scheduling could be the difference between your business continuing to run like a well-oiled machine and chaos.

• Communicate your vacation request process and make sure it’s fair and transparent. Let employees know if requests will be treated on a first-come, first-served basis, by seniority, etc.

• Post schedules in advance so employees can plan their vacation requests around whether they’ll be needed to work.

• Clarify who needs to come in to work if you’ll be staying open, and ensure they understand they'll receive premium pay.

• Communicate closures clearly to both staff and customers. Whether it’s through signage, email or your HR system. 

Staying prepared will not only keep you compliant but also help avoid last-minute staffing headaches. 

Protect your business this Labour Day and beyond with BrightHR

A simple oversight on a statutory holiday could cost your business far more than an employee's day’s wages. Whether it’s forgetting to pay employees who work on that day correctly or mishandling vacation requests, missed obligations can lead to: 

• Employee complaints to labour boards

• Back pay orders for missed holiday pay

• Fines and penalties from provincial authorities

Fortunately, you don’t have to fall victim to such risks if you have the right support. With BrightHR, you'll have access to expert-drafted documentation, a 24/7 advice line to turn to with your questions, and easy-to-use HR software making it simple to stay on top of vacation requests no matter where you operate in Canada. So, when Labour Day rolls around, you can rest easy knowing your business is compliant. 

Interested in seeing how BrightHR helps over 9,000 Canadian business owners simplify people management? Book a demo today!