What is Statutory Holiday?

A statutory holiday is, also known as Public Holiday, comes every year. There are ten holidays every year. Employees are paid on these holidays the same as their regular working days. The list of statutory holidays is:

• New Year's Day (January 1st)
• Good Friday (April 15th)
• Victoria Day (May 23rd)
• Canada Day (July 1st)
• Labor Day (September 5th)
• National Day for Truth & Reconciliation (September 30th)
• Thanksgiving Day (October 10th)
• Remembrance Day (November 11th)
• Christmas Day (December 25th)
• Boxing Day (December 26th)

Three Reasons to Mark Upcoming Public Holidays:

The best way to manage the payroll system is to complete the payroll process by handling payroll to employees in three business days before the employee's payment date. The reason why Canadian businesses and payroll professionals mark their calendars or make a list for upcoming public holidays is:

1. To set a pay rate of holidays for employees.
2. To know if payroll setup has changed to put their payroll system according to the updated design.
3. To know which dates will be employees' holidays and time off.

Six Rules and Regulations of Paid Statutory Holidays:

1. Paid General Holiday:

Employees must be given paid public holidays if he has worked for the company for at least 30 workdays in 12 months before the holiday.

2. Working on Public Holiday:

Employees who work on a public holiday must be paid 1.5 times more of their salary along with their salary or a paid day off on the future date.

3. Holiday on Non-Regular Day:

If a public holiday comes on a non-regular day of work, employees are not supposed to be paid if they do not work on that public holiday if they are required to.

4. Absent Before & After Public Holiday:

If you are absent from work the day before and after a statutory holiday, you will not be paid for the holiday. 

5. Part-Time Employees:

Part-time employees are also paid on statutory holidays as full-time employees; only the difference is that part-time employees get paid according to their work hours.

6. Five of Nine Rule:

Some employees work on an irregular schedule, some days are regular days, and some are non-regular. If in 9 weeks, the employee has worked 5 of the same weekdays before the holiday, then a public holiday coming on any of that day is considered a workday. For example, if a holiday comes on Monday and the employee has worked 5 Mondays in the last nine weeks before the holiday, Monday is a regular day's work. This is called 5 of 9 rules.

Eligible Employees for Paid Statutory Holiday:

You are suitable for a paid public holiday if:

• You work on a public holiday if it's a regular day.
• You work on a public holiday which is not a typical workday.

Non-Eligible for Paid Statutory Holiday:

An employer is not supposed to be paid if:

• You do not work on a public holiday but are supposed to work.
• You are absent from your work without informing your employer of your last working day, first working day, or public holiday (if you are supposed to work on that holiday).

The bottom line:

We set up a proper payroll system or manage payroll on a public holiday. The laws and rules change with time, and it gets impossible to cover every circumstance. It would get easy for you if you get assistance and proper guidance on setting up the payroll process according to the employee's work schedule. For that guidance, don't hesitate to ask Yogi & Associates as we are here for you with our payroll practitioners to guide you in every aspect, to set up the pay according to the holidays and eligibility of your employees.