Prince Edward Island Labour Laws (2025 Guide)

What’s New in 2025

• New version of the Employment Standards Act (not yet in force)
• Minimum wage increase
• Temporary Foreign Worker Protection Act

Overview of Employment Law in Prince Edward Island

Federal vs. provincial jurisdiction

Employment standards are addressed under federal and provincial laws. 

The federal Canada Labour Code (CLC) covers employment standards for federally regulated private sector businesses. In reality, the CLC applies to a small percentage of Canadian workers. 

Federally regulated private sector businesses include:

• Air transport.
• Banks.
• Elevators for grain, mills for feed and seed, feed warehouses, and plants that clean grain and seed.
• Certain activities of First Nations band councils and Indigenous self-governments.
• Most federal Crown corporations.
• Cross-provincial or international port operations, marine transport, ferries, tunnels, canals, bridges, and oil and gas pipelines. 
• Postal and courier services.
• Radio and television broadcasting.
• Cross-provincial and international railways. 
• Some short-line railways.
• Cross-provincial and international road transport services, including trucks and buses.
• Telecommunications systems, including telephone and the internet.
• Uranium mining and processing, as well as atomic energy.
• Any business that is key to the existence of one of the above activities.

Most employees are subject to the labour laws of the province or territory in which they work. 

This guide covers employees regulated by Prince Edward Island (PEI) employment laws only and doesn’t discuss federal standards. 

Key employment legislation

Minimum employment standards, such as minimum wage and leave, in Prince Edward Island are outlined in the Employment Standards Act (ESA). The ESA applies to most PEI workers, with some limited exceptions, including:

• Commission-based salespersons and farm labourers: Only the provisions on payment, protection of pay, complaints, and enforcement apply to these workers
• Workers in private homes caring for children, people with disabilities, or older adults: Minimum wage and hours of work provisions don’t apply. 
• Employees under a collective agreement: Only the provisions regarding maternity, parental, and adoption leave, compassionate care leave, reservist leave, sexual harassment, paid holidays, payment, protection of pay, complaints, and enforcement apply. 

Important update

As a result of a recent review, a new version of the ESA received Royal Assent on November 29, 2024. However, this version of the ESA is in force as of September 2025. The Lieutenant Governor needs to set a date for it to apply. 

The information in this article reflects the law under the older version of the ESA that still applies to Prince Edward Island employers and workers. Where relevant, we’ve noted any significant changes in the new version. 

Employers and employees should keep an eye out for when the new ESA comes into force and review their responsibilities and rights under it. 

Wages and Pay Rules

Minimum wage

The minimum wage in Prince Edward Island is currently $16/hour. This rate will increase to $16.50/hour on October 1, 2025, and to $17/hour on April 1, 2026. 

Each year, the Employment Standards Board reviews the minimum wage in PEI.

Overtime pay

Employers must pay employees who complete more than 48 hours in a week (44 hours under the new Employment Standards Act) at 1.5 times their regular pay rate for each overtime hour worked. 

Standard work weeks (and, therefore, overtime) are different for some industries:

• Highway construction and maintenance: 55 hours.
• Seafood processing: 55 hours.
• Truck drivers: 55 hours.
• Community care facility workers: 96 hours over 2 weeks.

Employees and employers can agree to bank overtime hours instead of receiving overtime pay. These hours accrue at a rate of 1.5 hours for every hour of overtime worked. Employees must use any accrued overtime hours within 3 months of earning them. 

Statutory holiday pay

PEI recognizes eight statutory holidays:

1. New Year’s Day (January 1)
2. Islander Day (3rd Monday in February)
3. Good Friday (Friday before Easter Sunday)
4. Canada Day (July 1)
5. Labour Day (1st Monday in September)
6. National Day for Truth and Reconciliation (September 30)
7. Remembrance Day (November 11)
8. Christmas Day (December 25)

PEI workers are entitled to a paid day off on these holidays, except for salespeople paid on commission and farm labourers. 

To be eligible for holiday pay, employees must have:

• Worked for the same employer for at least 30 days.
• Earned wages on at least 15 of these days.
• Worked their scheduled shifts immediately before and after the holiday.

Holiday pay

Eligible employees receive their regular daily wage as holiday pay, even if they don’t work. For employees who work irregular hours, pay is calculated by averaging their hours or wages over the last 30 days. 

If an employee works on a holiday, they’re entitled to a regular day’s wages, plus 1.5 times their regular hourly wages for any hours worked. 

Employees and employers can also agree for the employee to take an additional day off instead of receiving 1.5 times their regular hourly wage. If they do this, employees receive their regular day of pay for this day off. 

Pay frequency and deductions

Employers must pay employees at least every 16 days. Each pay must include all wages earned up to no more than 5 working days before payday. 

Employers must provide workers with pay statements for each pay period. 

The only deductions employers can make from employees’ pay are those that are:

• Required by law.
• Required by a court order.
• Related to a group benefit plan.
• Requested by the employee as part of a savings plan.
• Repaying an earlier pay advance
• Authorized in writing by the employee

Employees can’t deduct the cost of uniforms from employees’ pay, but they can require employees to pay a deposit. This deposit is capped at 25% and must be repaid to the employee when they return the uniform. 

Working Hours and Rest Breaks

Standard work hours

A standard work week in PEI is 48 hours (44 hours under the new Employment Standards Act). Most employees become entitled to overtime after working this number of hours. 

Several industries have different standard work weeks, as covered in the overtime section above. The Employment Standards Board can change the number of hours in a standard work week. 

There are no provisions under the current ESA that allow for averaging agreements. However, the new ESA will enable employers and employees to agree on average working hours over a period of 2 to 4 weeks. 

Meal and rest breaks

Employees must have an unpaid 30-minute rest or meal break after 5 consecutive hours of work. This break must be paid if the employee is required to stay at the workplace during it. 

Employees covered by the Employment Standards Act are also entitled to a minimum of 24 hours of unpaid rest in a week. If possible, this rest day should include Sunday (the new ESA no longer requires this). 

Split shifts and on-call Time

Under the Employment Standards Act, employees who are asked to report to work outside of their regular hours or who are sent home early must be paid for at least 3 hours of work. This includes when employers require employees to attend mandatory staff meetings. 

The current ESA doesn’t cover rules around split shifts. Under the new ESA, employees must complete any split shifts within 12 hours of the start of the first shift. 

Leave Entitlements

Vacation leave

Employees who have worked for the same employer for less than 8 years are entitled to 2 weeks of vacation leave for each 12 months they work. Employers must provide them with their vacation leave within 4 months of the end of the 12-month period. 

These workers must receive vacation pay at least 1 day before their leave starts, calculated as 4% of their wages over the 12-month period. 

Employees who have worked for the same employer for more than 8 years are entitled to 3 weeks of vacation leave for each 12 months they work. Their vacation pay is calculated as 6% of their wages over the 12-month period. 

Employers must give employees a minimum of 1 week’s notice of their vacation. 

Specific types of employees aren’t eligible for vacation leave or pay, including commission-based salespeople and farm workers. 

The new Employment Standards Act reduces the continuous employment period from 8 to 5 years and changes when employees must receive vacation pay. 

Sick leave and personal emergency leave

PEI employees who have been with their employer for at least 3 months are entitled to up to 3 days of unpaid sick leave every 12 months. The new version of the Employment Standards Act increases this to 4 days for employees who have worked for at least 30 days. 

Employees who have worked for the same employer for 12 months or more are entitled to additional paid sick leave (capped at 3 days):

• 12 months of service: 1 day of sick leave.
• 24 months: 2 days.
• 36 months: 3 days.

These leave days are paid at the employee’s regular rate of pay. 

Employers can require a medical certificate if an employee requests 3 consecutive days of sick leave. 

Medical leave (new ESA only)

Under the new Employment Standards Act, employees who have worked for at least 90 days can take up to 27 weeks of unpaid leave in a 52-week period for medical treatment or recovery, organ and tissue donation, gender-affirming care, or other medical treatment that prevents them from working. 

Family leave

Employees can access up to 3 days of unpaid leave a year to tend to the health or care of an immediate or extended family member. Employees must have worked for 6 months before they can access this leave. 

Immediate family members include the employee’s spouse, child, parent, or sibling. Extended family members include grandparents, grandchildren, siblings-in-law, parents-in-law, sons-in-law, daughters-in-law, aunts, and uncles. 

Leave related to a critically ill child

Employees who have worked for at least 3 months can take up to 37 weeks of unpaid leave in a 52-week period to care for their critically ill child. “Critically ill” means the child’s life is at risk from their illness. 

Employees can use this leave all at once or intermittently, at least one work week at a time.  

Employers are allowed to request medical certificates to support requests for this type of leave. 

This leave is job-protected. 

Compassionate care leave

PEI employees can take up to 28 weeks of unpaid leave to care for a family member with a serious medical condition who is at risk of dying in the next 26 weeks. A medical certificate must support requests for compassionate care leave. 

Family member includes:

• Immediate and extended family members.
• Nieces, nephews, foster parents, wards, and guardians.
• Anyone who is similar to the above family members in the eyes of the employee.

Parental, Maternity, and Adoption Leave

Maternity leave

Pregnant employees who have worked at least 20 weeks in the 52 weeks before their leave starts are entitled to up to 17 weeks of unpaid maternity leave. 

Employees must provide a medical certificate confirming their expected due date to be eligible for this leave. They must also apply in writing to their employer, setting out the proposed dates of leave, at least 4 weeks before the intended start date. 

Maternity leave can start at any time during the 13 weeks before the employee’s estimated due date. Employers can require employees to start their leave earlier if the pregnancy unreasonably interferes with the employee’s ability to perform their duties. 

Parental and adoption leave

Employees who become the parent of a child (either through birth or adoption) and have worked for the same employer for at least 20 weeks in the 52 weeks before the leave is due to start are entitled to up to 62 weeks of unpaid leave. 

Employees must use this leave within 72 weeks of the child’s birth or placement. 

To access this leave, employees must submit a written application to their employer at least 4 weeks before the intended start date of their leave. Employees who are becoming adoptive parents can submit their application the day they are notified of the child’s placement. 

Employees taking maternity and parental leave must take their parental leave immediately after their maternity leave ends. Combined maternity and parental leave is capped at 78 weeks. 

Parental leave may be extended by up to 5 weeks where a child has a physical, psychological, or emotional condition requiring parental care. Employers can request a medical certificate to support applications for an extension. 

Parental, maternity, and adoption leave are job-protected. 

These leaves are unpaid. However, employees may be eligible for federal Employment Insurance benefits. 

Bereavement leave

Employees can access up to 3 consecutive days of leave following the death of an immediate or extended family member. 

In the case of the death of an immediate family member, only the first day of this is paid. 

Immediate family members include the employee’s spouse, child, parent, or sibling. Extended family members include grandparents, grandchildren, siblings-in-law, parents-in-law, sons-in-law, daughters-in-law, aunts, and uncles. 

This leave must be taken immediately or, at the latest, starting on the day of the funeral or memorial service. 

Bereavement leave in Prince Edward Island also covers pregnancy loss. 

Domestic violence or compassionate care leave

Employees who have worked for at least 3 months are entitled to up to 3 days of paid leave and another 7 days of unpaid leave relating to domestic violence, intimate partner violence, or sexual violence. This includes employees who are themselves a victim and employees whose child or person they care for is a victim. 

Workers can take this leave all at once or intermittently across a 12-month period. Employers can also request supporting documents for this type of leave.  

Jury duty and civic leave

Employees are entitled to take unpaid court leave to serve on a jury or attend court as a witness. 

Other types of leave

• Leave for the crime-related disappearance or death of a child: up to 52 weeks (in the case of disappearance) and 104 weeks (in the case of death) of unpaid leave for employees who have worked for at least 3 months.
• Emergency leave: unpaid leave for the time an employee is unable to perform their job duties due to a public emergency, such as a public health or weather emergency. 
• Reservist leave: members of the Canadian Forces Reserves can take unpaid leave for training or duty after working for their employer for at least 3 months.
• Citizenship ceremony leave: 1 day of unpaid leave for employees who have worked at least 90 days (in the new ESA only).

Types of Employment

Full-time, part-time, casual, temporary, and seasonal work

The Employment Standards Act applies to all employees, with specific exceptions. This means it covers all types of employment, including full-time, part-time, casual, temporary, and seasonal workers, unless expressly excluded. 

There are some specific rules for certain employees. For example:

• Part-time employees who have worked for the same employer for at least 12 months and work less than 90% of normal working hours can waive their right to receive a vacation and instead receive vacation pay alone. 
• Employers can give seasonal workers their vacation pay as part of their hourly rate if the worker is aware of this and it’s clearly documented in payroll records and pay stubs. 

Independent contractors and misclassification

Under the Employment Standards Act, an employee is someone who is paid to perform work or provide services to an employer. PEI doesn’t have a specific law that defines independent contractors. 

However, like many provinces, Prince Edward Island generally looks at the circumstances of the relationship to determine whether it’s one of an employee or an independent contractor.  

It’s essential that employers correctly classify workers. Employees are entitled to the rights and protections under the ESA, while the contract covers the relationship with independent contractors. Treating an employee as an independent contractor could lead to fines and other penalties under the ESA. 

Termination and Final Pay

Notice requirements

If an employee has worked for an employer for at least 6 months, the employer must give them the following written notice of termination:

• Employees with between 6 months and 5 years of service: 2 weeks.
• Employees with between 5 and 10 years of service: 4 weeks.
• Employees with between 10 and 15 years of service: 6 weeks.
• Employees with 15 or more years of service: 8 weeks.

Employers can also pay employees their normal wages in lieu of these notice periods. Employers are prohibited from forcing employees to use vacation leave during their notice period, although employees can agree to do so. 

There are various situations where employers don’t need to provide written notice, including where:

• There is just cause to terminate the worker.
• The worker was employed for 12 months or less to perform a specific task.
• Workers were terminated for reasons outside of the employer’s control, such as the destruction of a plant.

When an employee decides to terminate their employment, they must give their employer written notice:

• Employees with between 6 months and 5 years of service: 1 week’s notice.
• Employees with 5 years or more of service: 2 weeks’ notice.

The new version of the Employment Standards Act reduces the time after which employees become entitled to notice/pay in lieu of notice from 6 months to 90 days. It also adjusts the required notice periods. 

Severance pay

There are no provisions under the Employment Standards Act requiring employers to provide severance pay. 

Final pay deadlines

At the end of their employment, employees must receive their final pay by the end of the next pay period. Final pay must include any earned unused vacation pay. 

Workplace Health and Safety

Workers’ Compensation Board

Prince Edward Island’s Workers’ Compensation Board (WCB) administers the province’s workplace health and safety laws. 

Its workers’ compensation program provides financial benefits to workers who are injured or become ill as a result of their work. Employer premiums fund workers’ compensation in PEI. 

Employer duties

Under PEI’s Occupational Health and Safety Act (OHSA), employers are required to take all reasonable precautions to provide employees with a safe working environment. To do this, they must:

• Provide properly maintained equipment to employees.
• Deliver necessary health and safety training, information, and supervision.
• Ensure workers and supervisors understand workplace hazards.
• Consult with the employer’s joint occupational health and safety committee or representative, where applicable.
• Comply with the OHSA and put in place any required policies or programs.
• Creating a written occupational health and safety program, which is reviewed every year; applies only to employers with 20 or more workers. 
• Establish a joint occupational health and safety committee; applies only to employers with 20 or more workers.
• Creating a written occupational health and safety policy that is reviewed each year; applies only to employers with 5 or more workers.
• Appoint a health and safety representative; applies to employers with at least 5 employees who aren’t required to set up a health and safety committee.

Employers are also required to create and implement a policy detailing the steps they will take to prevent workplace harassment and how they will investigate harassment allegations. They must also comply with the Workplace Harassment Regulations. 

Worker rights

Workers’ rights under the OHSA include:

• The right to be informed about existing hazards and the steps they can take to protect themselves.
• The right to participate in creating a safe working environment.
• The right to refuse to do unsafe work.

Workers also have duties under the OHSA, including:

• Taking all reasonable steps to protect their own and others’ health and safety in the workplace.
• Use any protective or safety equipment provided by their employer
• Comply with the OHSA.
• Immediately report any workplace hazards or safety concerns.

Reporting requirements

Workers must report any workplace injury to their employer immediately. Employers have 3 days to complete and file an Employer’s Report with the WCB online, by email, mail, fax, or in person. 

If the injury is serious or is the result of an explosion, employers must report it immediately to the WCB by phone at 902-628-7513. A serious injury includes those that result in loss of consciousness, fracture, the amputation of a leg, arm, hand, or foot, loss of an eye, major burn, significant blood loss, or death. 

Recordkeeping Requirements

Required records

Prince Edward Island employers must keep payroll records for all employees for 36 months after they perform their work. These records include:

• Names, addresses, social insurance numbers, and dates of birth.
• Pay rates and net pay for each period.
• Daily and weekly hours.
• Gross wages for each pay period.
• Details of any deductions.
• Start and end dates of employment.
• Type of work the employee does.
• Vacation dates.
• Vacation pay.
• Paid holiday pay.
• Dates of any leave and the reason for leave.
• Accumulated and paid sick days.
• Accumulated and used overtime hours.
• Dismissal, suspension, or layoff dates and any related notices.

Workplace Rights and Protections

Human rights and anti-discrimination

Under Prince Edward Island’s Human Rights Act, employers can’t discriminate against candidates or employees based on various protected characteristics, including:

• Age.
• Association.
• Colour.
• Race.
• Ethnic or national origin.
• Creed or religion.
• Criminal history unrelated to the role.
• Disability, including drug or alcohol addiction.
• Marital or family status.
• Gender expression or gender identity.
• Political belief.
• Sex, including pregnancy.
• Sexual orientation.
• Source of income.

Employers also can’t retaliate against individuals for filing a complaint with the Human Rights Commission. 

Reasonable accommodations must be made for candidates or employees with one or more of the above characteristics to ensure equal access to employment, unless doing so would cause the employment undue hardship. 

Employers can’t dismiss or otherwise penalize an employee for being pregnant, temporarily disabled due to pregnancy-related conditions, or applying for maternity, parental, or adoption leave. 

Complaint process

Candidates or employees alleging workplace discrimination can file a complaint with Prince Edward Island’s Human Rights Commission within a year of the alleged discrimination. 

The Commission works with the involved parties to try to settle the matter by agreement. Alternatively, the Commission investigates the complaint and determines whether to dismiss it, discontinue it, or refer it for a panel hearing. 

Parties have 30 days to apply to the Supreme Court for a judicial review of the panel’s decision if they are unhappy with it. 

Harassment and violence policies

As mentioned above, Prince Edward Island’s workplace health and safety laws address workplace harassment. 

Under the Employment Standards Act, employers must also make all reasonable efforts to ensure employees aren’t victims of sexual harassment in the workplace. Part of this obligation includes developing a sexual harassment policy statement, which explains how sexual harassment complaints can be made.  

Rights of vulnerable workers

Youth workers

Prince Edward Island’s Youth Employment Act outlines additional employment standards for youth workers (employees under 16 years of age). It includes protections such as:

• Prohibiting young people from working in construction.
• Limiting when young people can work.
• Requiring employers to provide training before letting a young worker work unsupervised.

Migrant workers

Prince Edward Island’s Temporary Foreign Worker Protection Act and related regulations came into effect on April 1, 2025. 

The Act provides additional protections to temporary foreign workers, including prohibiting recruiters and employers from:

• Charging foreign workers to help them find work.
• Keeping foreign workers’ passports.
• Threatening workers with deportation.

The Act also creates a licence scheme and registry for recruiters who work with foreign workers. 

Government Resources and Support

Provincial labour ministry

The Government of Prince Edward Island’s website contains extensive information and links to the relevant employment standards laws.

Federal Resources

• Canada Labour Code
• Canada Revenue Agency – Payroll Deductions
• Service Canada – EI and Parental Benefits
• Canadian Centre for Occupational Health and Safety
• Canadian Human Rights Commission

Disclaimer

The information in this guide is intended for general informational purposes only and is not legal advice. Employment laws change frequently, and outcomes may vary depending on your specific circumstances. While we have made every effort to ensure the information provided is up-to-date and reliable, we cannot guarantee its completeness, accuracy, or applicability to your specific situation. For guidance, consult the appropriate provincial labour authority or a qualified employment lawyer.