- Under the ESA, Ontario's recognized public holidays are New Year's Day, Family Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving, Christmas Day, and Boxing Day.
- Rather than simply paying an employee's regular daily rate for a public holiday, the ESA uses a formula based on the wages the employee actually earned and the days they worked in a…
- An employee required to work on a public holiday is generally entitled to some combination of premium pay for the hours worked and/or a substitute day off with public holiday pay,…
Public holiday pay looks simple from a distance and turns complicated the moment an actual payroll run needs to reflect it correctly. Ontario employers routinely run into trouble not because the concept of public holiday pay is obscure, but because the calculation depends on an employee's actual work and earnings pattern in the weeks before the holiday — not a flat assumption that applies to everyone the same way.
This article walks through which days count, how the entitlement generally works, and the mistakes that most often surface in a Ministry of Labour complaint or an internal payroll audit.
Which Days Are Public Holidays
Under the ESA, Ontario's recognized public holidays are New Year's Day, Family Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving, Christmas Day, and Boxing Day. Some employers also choose to treat additional days as paid holidays as a matter of policy or contract — but that's an enhancement beyond the statutory minimum, not a substitute for correctly administering the ESA holidays themselves.
This entitlement generally applies regardless of whether an employee is full-time, part-time, permanent, or a fairly new hire — length of service is not typically the deciding factor for whether the holiday itself is recognized, though it can affect how the pay amount is calculated given a shorter earnings history to draw on.
How Public Holiday Pay Is Calculated
Rather than simply paying an employee's regular daily rate for a public holiday, the ESA uses a formula based on the wages the employee actually earned and the days they worked in a period leading up to the holiday. In practical terms, this means:
- An employee's public holiday pay reflects their actual recent earnings pattern, not a generic assumption
- Part-time and variable-hour employees are not excluded from the entitlement, but their pay amount will reflect their variable schedule
- The specific formula and reference period are set out in the ESA and its regulations — employers should confirm the current calculation method rather than relying on an old payroll template, since these details are exactly the kind of figure that needs to be checked against the source rather than assumed.
If an Employee Works on the Holiday
An employee required to work on a public holiday is generally entitled to some combination of premium pay for the hours worked and/or a substitute day off with public holiday pay, depending on what's agreed between employer and employee. The exact mechanics — including any premium rate — are set out in the ESA; employers should verify the current rules before setting payroll rules rather than relying on general industry practice, which varies.
Qualifying to Receive Holiday Pay
Not every employee automatically receives public holiday pay for every holiday. A common eligibility issue arises when an employee fails, without a legitimate reason, to work their last scheduled shift immediately before or immediately after the holiday. Employers should apply this rule carefully and consistently — it is not a blanket excuse to deny holiday pay whenever an employee happens to miss a shift, and reasonable-cause exceptions exist.
Common Employer Mistakes
| Mistake | Why it causes problems |
|---|---|
| Paying a flat daily rate regardless of recent earnings pattern | The ESA formula looks at actual recent wages and days worked, not a flat assumption |
| Assuming part-time staff don't qualify | Part-time and variable-hour employees are generally still entitled, calculated on their own pattern |
| Denying holiday pay for any missed shift near the holiday | The "last scheduled shift" rule has reasonable-cause exceptions |
| Not documenting whether premium pay or a substitute day was chosen | Creates disputes later about what was actually agreed or provided |
| Using an outdated payroll template that hasn't been checked against current ESA rules | Formulas and rates are the kind of detail that changes and needs periodic verification |
Frequently asked questions
Do salaried employees still get public holiday pay?
Generally yes — public holiday entitlement isn't limited to hourly employees. How the pay amount is calculated depends on the employee's earnings and schedule pattern, which the ESA formula accounts for.
What if a public holiday falls on an employee's regular day off?
Employees are still generally entitled to public holiday pay even if the holiday falls on a day they wouldn't normally have worked — the entitlement isn't limited to days the employee was scheduled to work.
Can an employer substitute a different day off instead of paying for the actual holiday?
In some circumstances, yes, with a substitute day arrangement — but this generally needs to be documented and agreed rather than assumed unilaterally by the employer.
What should I do if I think my public holiday pay calculations have been wrong?
Have a lawyer or payroll professional review your calculation method against the current ESA formula. Past miscalculations across a workforce can add up to meaningful liability, so it's worth checking rather than assuming the issue is minor.
Do public holiday rules differ for employees covered by a collective agreement?
Some unionized workplaces address public holidays through the collective agreement itself, which can supplement or interact with the ESA minimums in ways that need to be read together rather than assumed to match a non-union policy.
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