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How to Shut Down for Non-statutory Canadian Holidays

Time off from work pays off in the form of major wellness benefits. From boosting cognitive function and problem-solving skills to improving overall performance and reducing the risk of chronic illness. Canadian holidays, both statutory and non-statutory, provide valuable opportunities for rest and recovery. While statutory holiday entitlements vary significantly across provinces, many Canadian businesses choose to close for additional non-statutory holidays those not legally required. 

This can be a great way to boost morale and give employees much needed downtime. However, it’s essential to understand the legal implications before implementing a non-statutory holiday shutdown. In this blog, we will give you a comprehensive guide on how Canadian businesses can legally and effectively shut down for non-statutory holidays, making sure they stay compliant with relevant legislation and common law.

We will go over the difference between statutory and non-statutory holidays, understanding provincial and territorial variations, how to go about shouting down, effectively communicating the shutdown to employees, and factors to consider before going ahead with a shut down.. 

What is the difference between statutory and non-statutory holidays?

Statutory holidays, also known as public holidays, are mandated by provincial, territorial, or federal legislation in Canada. These are the days your employees are legally entitled to take off work, and should be entitled to holiday pay for.

The specific statutory holidays and rules can be different  depending on the province that you are in or  where your employees are employed. For example, British Columbia has different statutory holidays than Ontario, and the criteria for holiday pay can also differ. Here are examples of statutory holidays recognized in Canada:

  • New Year’s Day
  • Good Friday
  • Canada Day
  • Labour Day
  • Christmas Day

Non-statutory Canadian holidays

Non-statutory holidays, on the other hand, are holidays that are not mandated by law. These are additional days off that employers may choose to provide to their employees, often as a benefit or for religious occasions not covered by statutory holidays. While employers are not legally required to offer non-statutory holidays in Canada, they can be great for boosting employee morale, attracting and retaining talent. Some examples of common non-statutory holidays in Canada are:

  • Family Day: A statutory holiday observed in British Columbia, Alberta, New Brunswick, Ontario, and Saskatchewan. The same day (the third Monday in February) is called Heritage Day in Nova Scotia, Islander Day in Prince Edward Island, and Louis Riel Day in Manitoba.
  • Thanksgiving: Observed on different dates in Canada and the US – Canadian Thanksgiving is a statutory holiday.
  • Boxing Day: While widely observed, it’s not a statutory holiday in most jurisdictions

It’s crucial to be aware that some days commonly perceived as non-statutory, like Family Day or Thanksgiving, are statutory holidays in certain provinces.  Always check the specific legislation!

Why does the difference matter in Canada?

Understanding the difference between statutory and non-statutory holidays is good to know for a few reasons, which we have broken down below:

  • Legal Compliance: Failing to provide statutory holidays or holiday pay as can result in legal penalties and damage your company’s reputation.
  • Employee Relations: Offering non-statutory holidays can improve employee morale and create a more positive work environment within your team.
  • Policy Clarity: Clearly defining your company’s policy on both statutory and non-statutory holidays to your employees is important to avoid confusion and disputes down the line.

By understanding the distinction between these two types of holidays, employers can ensure compliance with employment laws, create a positive work environment, and develop clear and effective holiday policies.

Shutting Down for Non-statutory Holidays 

Employers must decide whether they want to shut down for non-statutory holidays. Considering the benefits of time off, employers can expect raised employee morale, performance, and wellbeing by offering non-statutory holidays throughout the year. Employers who want to observe these days have a few options available to them.  

  1. Pay your employees as if it were a statutory holiday. This is the simplest way to implement a non-statutory shutdown without upsetting employees. This is not required under any employment legislation, but it helps employees consider the time off favourably. If you provide pay at their regular rate, there is little reason for them to take issue with a day off.  
  2. Dictate required vacations. Employers can’t always require employees to take vacation time when they see fit, but there are situations where they can. Under Ontario’s Employment Standards Act, 2000, employers can dictate when an employee takes vacation, but it cannot be in periods of less than one week. This means Ontario employers can require employees to use vacation time to cover non-statutory holiday shutdowns, but unless the employee agrees in writing, that assigned vacation time must be no less than one week long, covering the non-statutory holiday and some time before or after it.  
  3. Write it in an employment contract. Employers and employees are bound by employment contracts. If you add annual scheduled shutdowns on a non-statutory holiday without pay into the agreement, all parties must comply. If you plan for these non-statutory shutdowns to regularly occur each year, but employment contracts already exist, draft an agreement to cover the provisions and requirements surrounding the time off each year. This way you only need to receive consent from employees once.  

Important considerations before shutting down for non-statutory holidays

While offering extra time off can have its benefits, you need to weigh the benefits against the implications that you might have to face.  Here’s a breakdown of some important factors that you should  consider before implementing a non-statutory holiday shutdown:

  • Existing Agreements: You will need to review all employment contracts and company policies. These documents might already have sections or clauses regarding holidays and closures. Make sure that  your planned shutdown doesn’t go against any of these already existing agreements.
  • Provincial  Laws: While non-statutory holidays aren’t legally enforced, other employment standards within your province might still apply. It would be highly recommended that you familiarize yourself with your specific provincial laws around non-statutory holidays before you go ahead with a shutdown.
  • Cross over with Statutory Holidays: You should keep in mind how close the non-statutory holiday is to any statutory holidays. If you end up closing for a non-statutory holiday that is only followed up by a statutory holiday, it could have implications for employee pay and entitlement calculations.

Business Operations

  • Impact on Clients: Consider how the shutdown will affect your clients or customers. Give your clients a good amount of  notice of the closure and consider alternative options for essential services or support if needed. Making sure that you have clear communication with your clients will help avoid any pain points around the potential shutdown.
  • Industry Standards: Research the industry norms around holiday closures. If your competitors are typically closed, it might be expected by employees and clients. However, if your competitors stay open during a non-statutory holiday, a shutdown could put you at a disadvantage.
  • Staffing and Coverage: If you have essential operations or important deadlines that require you to be somewhat functional on a given day, determine the minimum staff required and how you’re going to arrange coverage. You could offer some perks, such as overtime or incentives, to anyone who has to work on these days, if you decide to do a partial shutdown.
  • Project Deadlines: If there are important deadlines coming up for client project, you will need to communicate with them that you plan to close for a particular day. If this is going to cause delays, make sure that they are aware. Alternatively, as mentioned above, you could arrange coverage to meet the deadlines, just make sure that you are compensating anyone who has to work accordingly. 

Employee Considerations

  • Employee Morale vs. Business Needs: Balance the positive impact on employee morale with the potential disruption to business operations. Clear communication with employees about the reasons behind the shutdown can help ease any tension that might be caused.
  • Fairness and Consistency: Apply your holiday shutdown policy fairly and consistently across all employees. Avoid any favoritism or discrimination in granting time off. This should already be a part of your business policies so do not adjust them for non-statutory holiday shutdowns.
  • Communication: Clearly communicate the shutdown plans to employees well in advance. Provide details about which days the business will be closed, any expectations for employees, such as checking emails, and how to handle urgent requests or issues. Again, you should have a procedure in place already for shutdowns, so a similar process should be followed here.
  • Employee Feedback: What do your employees think? How do they feel about non-statutory holiday shut downs? Getting feedback from employees shows that you value their input and can help you  identify potential issues that you can address next time.

Does your business need support with holiday planning?

Understanding the difference between statutory holiday and non-statutory holiday is the first step in the process of setting up your holiday process, and remaining compliant while you do so. After all, this can be a tricky area for most businesses to navigate effectively.

By following some of the processes discussed in this blog, you will be able to successfully implement non-statutory holiday shutdowns that will benefit your employees and contribute to a healthy environment. 

Need more help with your holiday procedures? If you’re looking for further guidance and resources on managing non-statutory holidays, Citation Canada is here for you. As a leading provider of HR and health & safety solutions, we offer a wealth of resources, including:

  • HR Documentation: Access a comprehensive library of HR documents, including templates, policies, and forms, to streamline your holiday management processes.
  • Training Courses: Enhance your knowledge and skills with HR training courses covering a range of topics, including holiday management and compliance.
  • HR Advice and Consulting: Get personalized guidance from HR professionals to address any specific questions or challenges you may have regarding non-statutory holidays.

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