Leave policy in Canada: Employer’s guide in 2026
Find out more about the leave policy in Canada, including vacation days, public holidays, parental leave, bereavement leave policies in Canada, and more.
Leave policy in Canada is governed by the federal Canada Labour Code and the Employment Standards Act in each province. Employees are entitled to 21 days of annual leave, but the days might vary according to the respective provincial law and for federally regulated employees. Paid medical leave is granted for up to 10 days for serious illness. Nationwide, there are 5 public holidays, but they vary according to the province. Apart from these, there are 17 weeks of unpaid maternity leave and 63 weeks of unpaid parental leave. 10 days of bereavement leave can be paid or unpaid.
Before hiring employees in Canada, businesses must understand the leave policy in Canada and what paid time off (PTO) employees are entitled to. While most paid leave laws are standardized, they can sometimes vary between provinces.
Employers might find it difficult to navigate the leave policy in Canada because of the federal and provincial regulations. Partnering with an Employer of Record, such as Payoneer Workforce Management, helps employers stay compliant and supports in mitigating compliance risks.
What is vacation or annual leave in Canada?
Vacation or annual leave in Canada mostly depends on the jurisdiction. 21 days is the general annual leave in the country. However, for federally regulated employees, the annual/vacation leave increases with years of employment. They start with 2 weeks of vacation after completing 1 year of employment, increasing to 3 weeks of vacation after 5 consecutive years of employment with the same employer, and 4 weeks of vacation after 10 consecutive years of employment. Provincial Employment Standards Acts follow similar tiers, though exact thresholds vary.
Let’s take a closer look at the vacation leave policy in Canada for different regions in Canada:
| Region | Vacation leave policy in Canada |
| Federal | 2 weeks after 1 year 3 weeks after 5 years 4 weeks after 10 years |
| Alberta | Minimum 10 paid vacation days (<5 yrs) 15 paid vacation days (5+ yrs) |
| British Columbia, Manitoba, Ontario | 2 weeks after 1 year3 weeks after 5 years |
| Saskatchewan | 3 weeks after 1 year 4 weeks after 10 years |
| Quebec | 1 day per month in the first year (up to 2 weeks) 2 weeks after 1 year, though employees can request 1 additional unpaid week 3 weeks after 3 years |
| New Brunswick | 1 day/month or 2 weeks/year for the first 8 years 1.25 days/month or 3 weeks/year after 8 years |
| Nova Scotia | 2 weeks after 1 year 3 weeks after 8 years |
What are the public holidays in Canada?
There are federal as well as provincial public holidays in Canada. While the 5 federal public holidays are observed uniformly across Canada, the provinces observe holidays at their own discretion. Again, federally regulated employees are entitled to 9-10 general holidays under the Canada Labour Code. It is mandatory to determine the public holidays for the employee, depending on the work location and employment type (federally regulated or otherwise).
Canadian employees are entitled to time off on public holidays. If they’re required to work on one of these holidays, they must be given an additional day’s leave in lieu or receive a premium pay rate.
Here is a list of federal holidays in Canada for the year 2026:
| Event | Date in 2026 |
| New Year’s Day | 1st January |
| Canada Day | 1st July |
| Labor Day | 7th September |
| National Day for Truth and Reconciliation | 30th September |
| Christmas Day | 25th December |
Other provincial holidays are listed below:
| Event | Date | Observed in |
| Islander Day | 3rd Monday in February | Prince Edward Island |
| Louis Riel Day | 3rd Monday in February | Manitoba |
| Family Day | 3rd Monday in February | Alberta, British Columbia, New Brunswick, Ontario, Saskatchewan |
| Good Friday | Friday before Easter | Nationwide (except Quebec, where it’s not statutory) |
| Saint George’s Day | April 26th | Newfoundland and Labrador |
| National Patriots’ Day | 3rd Monday in May | Quebec |
| Victoria Day | 3rd Monday in May | Nationwide (except Quebec) |
| National Aboriginal Day | June 21st | Northwest Territories, Yukon |
| Discovery Day | June (varies) | Yukon |
| National Holiday (Fête nationale) | June 24th | Quebec |
| Orangemen’s Day | July 12st | Newfoundland and Labrador |
| Civic Holiday | First Monday in August | Most provinces (not statutory everywhere) |
| British Columbia Day | First Monday in August | British Columbia |
| Heritage Day | First Monday in August | Alberta, Nova Scotia |
| New Brunswick Day | First Monday in August | New Brunswick |
| Natal Day | First Monday in August | Nova Scotia, Prince Edward Island |
| Saskatchewan Day | First Monday in August | Saskatchewan |
| Gold Cup Parade Day | Third Friday in August | Prince Edward Island |
| Thanksgiving | Second Monday in October | Most provinces |
| Armistice Day (Remembrance Day) | November 11th | Nationwide (except Ontario, Quebec, and Manitoba) |
| Boxing Day (Saint Stephen’s Day) | December 26th | Ontario and federally regulated employers only |
What is the maternity and parental leave policy in Canada?
Maternity and parental leave in Canada combine job-protected time off with Employment Insurance (EI) income support. New parents in Canada are entitled to 69 weeks of shared parental leave (61 for a single parent) in addition to the 15 weeks of maternity leave available to female employees as birth mothers.
Interestingly, the province of Quebec provides maternity, paternity, parental, and adoption benefits to residents.
Here are the details of the maternity and parental leave in Canada:
| Name of the benefit | Duration | Benefit rate |
| Maternity | Up to 15 weeks | 55% |
| Standard parental | Up to 40 weeks. The leave can be shared between parents, but one parent cannot get more than 35 weeks of standard benefits | 55% |
| Extended parental | Up to 69 weeks can be shared between parents One parent cannot get more than 61 weeks of extended benefits | 33% |
How many days of sick leave in Canada?
Sick leave in Canada is a combination of federal programs and provincial employment standards. 3 to 5 days of sick leave is common, though it varies from one province to another. The provinces offer job-protected sick leave, from short-term paid sick leave of 10 days to long-term unpaid sick leave for 27 weeks. Employers must always meet at least their province’s minimum standard.
Here are the details of the sick leave in Canada:
- EI sickness benefits provide financial assistance for up to 26 weeks when employees cannot work for medical reasons. Employees can receive 55% of their earnings.
- Employees are entitled to unpaid medical leave for 27 weeks for injury or illness, attending medical appointments, organ or tissue donation, etc.
- Employees are also entitled to up to 10 days of paid medical leave per year for the same reasons mentioned above.
What are the bereavement leave policies in Canada?
Employees in Canada are entitled to up to 10 days of bereavement leave in case of the death of an immediate family member. The bereavement leave can be taken in 1 or 2 periods, beginning from the day of the death and ending 6 weeks after the date.
In case of the death of the employee’s child, or the spouse’s or common-law partner’s child, the employee is entitled to 8 weeks of bereavement leave.
What are the other types of leave in Canada?
Canada’s leave framework extends well past vacation and sick days. There are other kinds of leave, like compassionate care leave, critical illness leave, family responsibility leave, and leave for victims of family violence.
| Type of leave | Details |
| Compassionate care leave (unpaid) | Up to 28 weeks a year within 52 weeks to care for a family member with a serious medical condition and a significant risk of death. |
| Leave related to critical illness (unpaid) | Up to 37 weeks a year to care for or support a child under 18, and up to 17 weeks to provide care for or support an adult. |
| Leave related to the death or disappearance of a child (unpaid) | 156 weeks of leave on the death or disappearance of a child |
| Personal leave (paid and unpaid) | Up to 5 days per year. |
| Leave for victims of family violence (paid and unpaid) | Up to 10 days per year if you are a victim of family violence, or the parent of a child who is a victim of family violence. |
| Leave for traditional Aboriginal practices (unpaid) | Depending on the province. |
| Leave for court or jury duty (unpaid) | For the time necessary for completion of the judicial proceeding. |
| Leave of absence for members of the reserve force (unpaid) | 24 months leave in 60 months, except in the event of a national emergency. |
What would happen if the leave policy in Canada is not handled by an EOR?
Without an EOR, businesses have to directly track and comply with Canada’s fragmented leave laws across federal and 13 provincial/territorial jurisdictions themselves. This would increase the risks of miscalculated entitlements, missed statutory updates, and compliance penalties. In-house HR would need to manage vacation accrual, medical leave, parental benefits coordination with EI, and jurisdiction-specific rules manually. This increases administrative burden, legal exposure, and the risk of employee disputes over incorrect leave calculations or denied entitlements.
Here is a table showing the differences in handling leave policy in Canada with and without an EOR:
| Aspects | Without an EOR | With an EOR |
| Leave calculation | HR/payroll team calculates entitlements, risking errors | Handled by EOR based on the employee’s jurisdiction and tenure |
| Compliance tracking | The company must track updates across all applicable jurisdictions manually | EOR monitors federal and provincial law and helps navigate changes |
| EI coordination | The company must independently handle EI applications and coordination | EOR manages paperwork and coordination |
| Multi-province hiring | Complex, requiring separate policies per province/territory | Simplified, since EOR standardizes processes across provinces |
| Legal risk | The company bears full legal and financial risk of non-compliance with the leave policy | EOR helps navigate leave policy compliance |
| Employee experience | Prone to inconsistencies or disputes over entitlements | Consistent, accurate leave administration |
Are you ready to explore Payoneer Workforce Management in Canada?
Exploring and understanding the leave policy in Canada requires patience. Both employers and employees must be aware of the federal laws and the provincial laws and regulations for leave entitlements. This is also mandatory for leave law compliance in the country.
Payoneer Workforce Management offers EOR services in Canada and helps navigate the leave policy in the country. The platform streamlines the services to onboard, pay, and manage talent in Canada, including time-off management.
Frequently asked questions (FAQs)
Employees in Canada receive different vacation entitlements depending on their province and years of service. The common practice is 21 days. Federally regulated employees receive two weeks of paid vacation after one year of employment, three weeks after five years, and four weeks after ten years.
The parental leave policy in Canada varies by province. The standard parental leave is for up to 40 weeks. The leave can be shared between parents, but one parent cannot get more than 35 weeks of standard benefits. There is also an extended parental leave for up to 69 weeks, which can be shared between parents. One parent cannot get more than 61 weeks of extended benefits.
Sick leave is also province‑specific. 3 to 5 days of sick leave are common, and some provinces offer additional unpaid long‑term illness or medical leave based on eligibility. There is a short-term paid sick leave of 10 days to a long-term unpaid sick leave for 27 weeks.
In most Canadian jurisdictions, unused vacation days can carry over to the following year, though provinces may impose limits or require employer approval. Employers often set policies requiring employees to schedule vacation in advance. Since rules differ by province, employers should confirm carryover limits under their specific jurisdiction’s employment standards.
Leave entitlements vary significantly across Canada’s provinces and territories. While the Canada Labour Code sets minimums for federally regulated industries, each province maintains its own Employment Standards Act governing vacation, sick leave, and parental leave. Employers must comply with the specific requirements of the province where employees are located.
Federally regulated employees can use medical leave for appointments related to personal illness, injury, or organ and tissue donation, up to a total of 27 weeks of unpaid leave annually. They are also entitled to up to 10 days of paid medical leave per year for the same reason.
Many Canadian jurisdictions provide leave for employees affected by domestic violence. Employees are entitled to violence leave for up to 10 days per year if they are a victim of family violence, or the parent of a child who is a victim of family violence. The leave may be paid or unpaid depending on jurisdiction-specific employment standards legislation.
Hire & pay globally with Payoneer Workforce Management
- Expand internationally in 160+ countries
- Run global payroll securely in a few clicks
- Stay compliant with local employment laws
- Let Payoneer Workforce Management manage benefits, work permits, timesheets, and more so you don’t have to
Schedule a demo
Related resources
Payoneer Workforce Management named a leader across 12 categories in G2’s Summer 2026 reports
In G2’s Summer 2026 Reports, Payoneer Workforce Management earned leadership recognition across global workforce categories for its reliable payroll, onboarding, compliance, and Employer of Record solutions.
Planning to hire employees in Bulgaria? Here’s a quick guide
Learn how to hire employees in Bulgaria. Covers contracts, work permits, payroll, leave laws, and how Payoneer Workforce Management supports compliance.
Employment laws in Bulgaria
Learn about labor laws compliance in Bulgaria, including contracts, working hours, statutory rights, termination, notice periods, and severance.
Employment laws in Israel
Learn about employment laws in Israel, from contract terms to working hours, from minimum wage to mandatory benefits. Ensure labor law compliance in Israel.
Leave policy in Israel
Explore the leave policy in Israel covering annual leave, sick leave, maternity, paternity leave, and public holidays. Stay compliant with leave laws in Israel.
Your guide to payroll in Bulgaria
Learn how payroll in Bulgaria works, covering income tax, social security, minimum wage, payslip rules, and how to stay compliant after euro adoption.
Leave policy in Bulgaria
A guide to leave laws in Bulgaria, covering annual leave, public holidays, sick leave, maternity and paternity leave, and statutory leave entitlements.
Employment laws in Austria
Labor laws compliance in Austria explained: contracts, working hours, mandatory benefits, notice periods, severance, and key statutes every employer needs.
Leave policy in Austria
Understand leave laws in Austria covering annual leave, sick pay, maternity, paternity, parental leave, and other statutory entitlements that employers must offer.
Latest articles
-
B2B Payments in India: What You Need to Know About Systems, Gateways and Security
Learn how B2B payments work in India, including payment gateways, electronic payments, security, real-time systems, and enterprise payment solutions.
-
Collecting Payment From Customers: Links, Invoices and Automation
Learn how to collect payments from customers in India using payment links, invoices, and automation. Discover secure, fast, and scalable ways to get paid online.
-
Accounts Receivable Explained: The Processes, Tools and Best Practices You Need to Know
Learn how accounts receivable works, including process flow, tools, and best practices. Discover how Indian businesses can automate AR and improve cash flow.
-
Payment Gateways: How to Add One to Your Website
Learn how to add a payment gateway to your website in India. Step-by-step setup for WordPress, PHP, and Wix, plus tips for secure and scalable online payments.
-
How to Accept Payments Online in India (With or Without a Website)
Learn how to accept payments online in India with or without a website. Explore simple setup options, payment methods, and tools for freelancers and businesses.
-
What Are Global Payments and How Do Businesses Collect Money Internationally?
Learn what global payments are and how businesses in India collect money internationally. Explore B2B payment methods, global platforms, and best practices for cross-border growth.
Disclaimer
The information in this article/on this page is intended for marketing and informational purposes only and does not constitute legal, financial, tax, or professional advice in any context. Payoneer and Payoneer Workforce Management are not liable for the accuracy, completeness or reliability of the information provided herein. Any opinions expressed are those of the individual author and may not reflect the views of Payoneer or Payoneer Workforce Management. All representations and warranties regarding the information presented are disclaimed. The information in this article/on this page reflects the details available at the time of publication. For the most up-to-date information, please consult a Payoneer and/or Payoneer Workforce Management representative or account executive.
Availability of cards and other products is subject to customer’s eligibility. Not all products are available in all jurisdictions in the same manner. Nothing herein should be understood as solicitation outside the jurisdiction where Payoneer Inc. or its affiliates is licensed to engage in payment services, unless permitted by applicable laws. Depending on or your eligibility, you may be offered the Corporate Purchasing Mastercard, issued by First Century Bank, N.A., under a license by Mastercard® and provided to you by Payoneer Inc., or the Payoneer Business Premium Debit Mastercard®, issued and provided from Ireland by Payoneer Europe Limited under a license by Mastercard®.
Skuad Pte Limited (a Payoneer group company) and its affiliates & subsidiaries provide EoR, AoR, and contractor management services.
