Changes to the Employment Standards Act

On June 30, 2026, Prince Edward Island will bring the new Employment Standards Act into force. The updated legislation modernizes and strengthens the rights and responsibilities of both employees and employers. 

The Employment Standards Act sets minimum rights and protections for employees in PEI. These rules apply to most workplaces and help ensure fair and safe working conditions. For complete details, refer to the Act and its regulations. 

The new Act is based on the work of an independent Comprehensive Review Panel, which conducted extensive research and consultation over two years. The Panel’s final report included 110 recommendations to modernize employment standards in PEI. 

In response, a new Act was passed in Fall 2024 to reflect current and emerging workplace realities. It is designed to balance flexibility and fairness while supporting healthy, resilient workplaces. 

• View the new Employment Standards Act  (effective as of June 30, 2026) 
• View the new Employment Standards Act Regulations - see pages 9 (297) to 14 (302) (effective as of June 30, 2026) 

• View the guide on Key Changes to the Employment Standards Act (effective as of June 30, 2026) 

Information sessions are available for employers who would like to learn more about the new rules. To request a session or for more information, please contact labourrelations@gov.pe.ca. 

What’s New?  

The information below outlines selected key changes under the new Employment Standards Act. It is intended as a general guide only, and readers are encouraged to review the Act and its regulations in full for a complete understanding of their rights and obligations. 

Medical Leave 
The Act introduces new medical leave. 

• You can take up to 27 weeks of unpaid, job-protected leave if you cannot work for a long period due to: 

  • Treatment of recovery from Illness or injury 

  • Organ or tissue donation 

  • Gender-affirming care 

  • Other approved medical procedures 

Sick Leave 
Previously, employees could only take 3 unpaid sick days and employers could request a sick note after 3 days of absence. Sick notes could only be issued by a doctor or nurse practitioner. 

• You now get 4 unpaid sick days per year after working 30 days. 

• Your employer can now only ask for a sick note if you are away for 5 or more days in a row. 

• Sick notes can now come from other licensed health professionals, if: 

  • They can provide a diagnosis  

  • You are their patient, and 

  • The illness or injury is within their area of practice 

• These rules now apply to unionized employees too. 

Hours of Work and Overtime 
The previous maximum work week was 48 hours, and no work scheduling requirements were in effect. 

• The maximum work week is now 44 hours.  This rule does not apply to some industries.  

• Overtime can now be calculated by averaging hours over 2 to 4 weeks, if you agree with your employer in writing. 

• A split shift must be completed within 12 hours of starting it.  

• An employer must give at least 8 hours of rest between shifts, except in limited circumstances.  

• You must now get your work schedule at least 1 week in advance, except in specific circumstances. 

Vacation Pay 
Previously, an employee had to work 8 years with the same employer to earn 3 weeks of vacation. 

• You now qualify for 3 weeks of vacation after 5 years. 

• Rules are now clearer for: 

  • Part-time employees 

  • Seasonal workers 

  • Short-term employees 

• Your pay statement must now show: 

  • Paid holiday pay 

  • Pay for any paid leave 

Tips 
Previously, employers were only required to have a tip pooling policy. 

• They are now required to post the tip pooling policy in the workplace for their employees to see. 

Citizenship Ceremony Leave 

The Act introduces a new Citizenship Ceremony Leave. 

• After 90 days of employment, you can now take 1 unpaid day off to attend your citizenship ceremony. 

Termination of Employment 
Previously, notice of termination could only happen after 6 months. 

• You now qualify for notice after 90 days of work 

• Employers must give at least 6 weeks’ notice when laying off a large group of staff if: 

  • At least 10 employees are affected;   

  • The affected employees make up 25% or more of the workforce; and  

  • All the layoffs happen within a two‑month period. 

• The 6-week notice must be given to: 

  • All affected employees; 

  • Any union representing the employees; and 

  • The government of PEI. 

Complaints and Penalties 

Previously, employees and employers only had one year to make a complaint. 

• You now have 2 years to make a complaint to the Employment Standards Branch. 

• Inspectors can now give fines to employers who break the rules.