Minimum employment standards

When you start working in Canada, your employer must follow employment standards that protect your minimum wages, working hours, paid time off, and severance rights. These standards vary by province and territory, and whether your workplace is federally regulated, so it is essential to understand which rules apply to you.

Minimum Wage

Canada has both federal and provincial minimum wage rates. About 94 percent of Canadian workers are covered by provincial or territorial standards, while the remaining 6 percent work in federally regulated industries such as banking, telecommunications, interprovincial transportation, and broadcasting.

As of August 2026, federal minimum wage is $18.15 per hour. However, if your provincial minimum wage is higher, your employer must pay you the provincial rate. Provincial and territorial rates range from around $15 to $19.75 per hour, with Nunavut having the highest at $19.75 per hour. Most provinces adjust their minimum wage annually or semi-annually, typically based on inflation measured by the Consumer Price Index (CPI).

Some provinces have special minimum wage rates for specific groups. For example, Ontario has different rates for students under 18, homeworkers, and hunting or fishing guides. Always check your province's official employment standards website to see if a different rate applies to your job category.

Overtime Rules and Pay

Overtime rules differ significantly by province and whether you work in a federally regulated industry. Most provinces use a weekly threshold for overtime, but some also have daily limits. When you work overtime, you must be paid a premium rate—typically 1.5 times your regular wage, though British Columbia requires double time for work beyond 12 hours in a single day.

The standard weekly overtime threshold in most provinces is 40 hours, but Ontario and Alberta require overtime payments only after 44 hours per week, while Nova Scotia and Prince Edward Island do not trigger overtime until 48 hours. Federally regulated employees follow the Canada Labour Code, which sets overtime at 1.5 times regular wage for hours beyond 8 in a day or 40 in a week, with a maximum 48-hour workweek.

Some provinces allow employers to offer paid time off in lieu of overtime pay—for example, giving you 1.5 hours off for every hour of overtime worked—but only if you take the time within a set window (usually 3 to 12 months, depending on the province). If you do not use this banked time within the deadline, your employer must pay out the overtime wages owed.

Certain jobs and workers may be exempt from overtime rules. Managers and supervisors who actually perform supervisory duties (not just hold a manager title) are often exempt, as are some professionals such as doctors and lawyers. However, being salaried does not automatically exempt you—exemptions are narrow and specific. If you believe you should receive overtime, ask your employer for the exemption details in writing.

Vacation Pay and Statutory Holidays

Vacation Entitlement

Every Canadian province and territory guarantees a minimum amount of paid vacation. The standard minimum across most jurisdictions is at least 2 weeks of vacation time per year after your first year of employment, or 4 percent of your gross wages as vacation pay if you are paid hourly.

Vacation pay accrues throughout the year and must be paid to you, either as time off or as a lump sum payment. If your employment ends before you take your vacation days, you are entitled to be paid all accrued but unused vacation pay in your final paycheck. Employers cannot impose a 'use it or lose it' policy that forfeits accrued vacation.

Statutory Holidays

Statutory holidays (also called public holidays or stat holidays) are paid days off that all eligible employees are entitled to, regardless of how long they have worked for their employer. The number of statutory holidays ranges from 6 to 11 depending on your province or territory. Common statutory holidays across Canada include New Year's Day, Canada Day, Labour Day, and Christmas Day.

Some holidays vary by province. For instance, Remembrance Day (November 11) is a statutory holiday in most provinces but not in Manitoba, Ontario, Quebec, or Nova Scotia. If a statutory holiday falls on a weekend, you are generally allowed to take a different regular workday as a paid holiday.

Holiday pay is calculated differently by province. In Ontario, for example, holiday pay equals one-twentieth of your regular wages earned in the four weeks before the holiday, excluding vacation and overtime pay. If you work on a statutory holiday, you are typically entitled to receive holiday pay plus premium pay at 1.5 times your regular rate, or an alternative paid day off, depending on your province and employer agreement.

Notice and Severance on Termination

When your employer terminates your employment without just cause, they must follow notice requirements or pay you in lieu of notice. If they choose to pay you in lieu, your employment ends immediately and you receive cash payment for the notice period—you do not return to work.

Notice Periods

Federally regulated employees and most provincial employees must receive at least two weeks' written notice of termination without cause, or two weeks' pay in lieu of notice. Some provinces have longer notice requirements depending on your length of service. For example, Ontario may require longer notice if you have been employed for several years, although statutory notice in Ontario begins at two weeks for general termination. Employees during probation (typically three months) may be terminated without notice or pay, provided the termination is in good faith.

Termination for just cause—serious misconduct such as theft, violence, or repeated insubordination—does not require notice or pay in lieu. However, just cause is a high legal bar and must involve conduct serious enough to justify ending the employment relationship immediately. If you believe you were wrongfully terminated for just cause, you may have legal options.

Severance Pay

Severance pay is compensation beyond the basic notice requirement, typically owed to employees terminated after a certain length of service. Severance rules vary significantly by province and jurisdiction.

Federally regulated employees who have completed at least 12 consecutive months of employment are entitled to severance pay. The amount is whichever is greater: two days' wages at your regular rate for each full year of employment, or five days' wages total. For example, an employee with five years of service would receive ten days' pay (2 days × 5 years) or five days' pay, whichever is higher.

Ontario is one of the few provinces that mandates severance pay under its Employment Standards Act. Employees with at least five years of service are entitled to one week's salary for each year of employment, up to a maximum of 26 weeks' pay. Most other Canadian provinces do not require statutory severance pay, though your employment contract or common law may provide for it.

If you have been terminated, your employer must provide you with a written statement setting out your vacation pay, wages, severance pay, and any other benefits owed. This statement helps you verify that you have received everything due to you.

Finding Your Specific Rules

Employment standards are detailed and vary by jurisdiction. To find the rules that apply to you, first determine whether your employer is federally regulated or provincial. If you work in banking, telecommunications, interprovincial transport, broadcasting, or a federal Crown corporation, you are federally regulated. For all other jobs, your province or territory's employment standards apply.

Next, visit your provincial or federal employment standards website. Each province and territory publishes guides on minimum wage, overtime, vacation, holidays, and termination rights. If you have questions or believe your employer is not following the law, you can file a complaint with your provincial labour ministry or the federal Labour Program.

Keep pay stubs and records of your hours worked. These documents are your proof if there is a dispute about wages or overtime. Also, familiarize yourself with the key dates in your jurisdiction—such as when minimum wage increases take effect or when you become eligible for severance—so you can plan your finances accordingly.