On June 12, 2026, the Prince Edward Island government (PEI) announced upcoming changes to the Employment Standards Act, effective June 30, 2026.
On November 29, 2024, Bill 76 received Royal Assent and will be proclaimed in force on June 30, 2026.
The changes include:
Medical leave
- A new entitlement to up to 27 weeks of unpaid, job-protected medical leave for treatment of or recovery from an illness or injury, organ or tissue donation, gender-affirming care, or other approved medical procedures.
Sick leave
- An increase to four unpaid days a year from previous three unpaid days, after 30 days of service.
- Employers could request a sick note after 5 days of absence (up from 3 days of absence)
- These rules now apply to unionized employees too
Hours of work, overtime and rest period
- The maximum standard weekly workweek will decrease from 48 to 44 hours for some industries
- Overtime can now be calculated by averaging hours over 2 to 4 weeks, if the employee agrees with their employer in writing.
- Overtime pay after 44 hours per week
- A split shift must be completed within 12 hours of starting it.
- An employer must give at least 8 consecutive hours of unpaid rest in every 24-hour period, except in limited circumstances.
- An employer shall provide an employee at least 24 consecutive hours of unpaid rest every week
- Employees must get their work schedule at least 1 week in advance, except in specific circumstances.
Averaging hours
- Employers and employees may enter into a written averaging agreement over a period of two to four weeks
- Work schedule can be amended in an averaging agreement, provided the total hours of work remain the same
- Employers shall not schedule the employee to work more than an average of 44 hours per week
- Rest period of at least 36 consecutive unpaid hours for each week covered by the averaging agreement, or overtime pay for each hour of work the employee is required or permitted to work instead of an unpaid rest period
Pay Transparency
- An employer who advertises a specific job to the general public shall include in the job posting the expected pay or range of expected pay for the position
Statutory Holidays
- Holiday pay is based on five per cent of the employee’s wages, excluding overtime, earned in the four weeks before the paid holiday
Vacation entitlement & pay statement
- Employees are entitled to 3 weeks of vacation after 5 years with the same employer (Previously 8 years)
- The employee’s pay statement must show paid holiday pay and pay for any paid leave
Tips
- Employers are required to post the tip pooling policy in the workplace for their employees to see
- No employee is required to share a tip or gratuity with their employer
Citizenship ceremony leave
- Employees are entitled to 1 unpaid day off to attend their citizenship ceremony if employed for more than 90 days
Termination of employment
- Employees can qualify for notice of termination after 90 days of employment (Previously 6 months)
- Employers must give at least 6 weeks’ notice when laying off a large group of employees if:
- At least 10 employees are affected,
- The affected employees make up 25% of the workforce; and
- The layoff happened within two months.
- The 6-week notice must be given to:
- All affected employees,
- Any union representing the employees; and
- The government of PEI
Notice of resignation
Where an employee has been employed by the same employer for a continuous period of six months or longer, the employee shall not resign without giving the employer, in writing, at least
- (a) one week of notice, where the employee has been employed by the employer for a continuous period of six months or longer but less than five years; or
- (b) two weeks of notice, where the employee has been employed by the employer for a continuous period of five years or longer.
Complaints and penalties
- Employees and employers have 2 years to make a complaint to the Employment Standards Branch (up from one year).
- Inspectors can now give fines to employers (from $500 to $1,500) who are not compliant with the rules
Definition of an employee
- Clarification of the employee definition
Employers in PEI must:
- Update their HR policies to ensure compliance with the new employment standards rules, and
- Communicate the upcoming changes to their employees.