By: Ryan MacDonald
Prince Edward Island’s new Employment Standards Act came into force on June 30, 2026. The legislation is the result of a comprehensive review of PEI’s employment standards framework and is intended to modernize workplace protections while providing greater clarity for employers and employees.
What Do Employers and Employees Need to Know?
Several of the most notable changes relate to employee leave entitlements. The new Act introduces:
- Medical leave of up to 27 weeks of unpaid, job-protected leave for employees who are unable to work due to illness, injury, organ or tissue donation, gender-affirming care, or certain other medical procedures;
- Increased sick leave entitlements to four unpaid sick days per year after completing 30 days of employment;
- Employers may only request medical documentation (i.e. sick notes) when an employee has been absent for five or more consecutive days; and
- Medical notes may be provided by a broader range of licensed health professionals such that they do not always need to come from a doctor.
The new Act introduces important changes to hours of work and scheduling requirements. The standard maximum work week has been reduced from 48 hours to 44 hours, although certain industries may be exempt. Employers and employees may agree in writing to average overtime hours over a period of two to four weeks. New scheduling protections require employers to provide work schedules at least one week in advance (in most circumstances). Employees must also receive a minimum of eight hours of rest between shifts, and split shifts must be completed within a 12-hour period.
Vacation entitlements have also been enhanced. Employees will now qualify for three weeks of vacation after five years of service, rather than the previous eight-year requirement. The legislation further clarifies how vacation pay and entitlements apply to part-time, seasonal, and short-term employees. Pay statements must now provide additional information, including holiday pay and compensation for paid leave.
For employers in industries where gratuities are common, tip-pooling policies must now be posted in the workplace, ensuring employees have access to clear information regarding the distribution of tips.
Termination and layoff provisions have been updated as well. Employees will now qualify for notice of termination after 90 days of employment rather than the previous six-month period.
The new legislation also strengthens enforcement mechanisms. The time limit for filing complaints with the Employment Standards office has been extended from one year to two years, and inspectors now have authority to issue penalties for violations of the Act.
Based on the significant changes, employers should review their workplace policies, employment agreements, scheduling practices, and payroll procedures to ensure compliance with the new legislative requirements. Additionally, employees should familiarize themselves with the updated standards to better understand their workplace rights and protections under the new legislation.
For more information or to ask questions on the new changes, please reach out to one of our lawyers.
