Build a Prince Edward Island employee policy manual around your organization, workplaces, workforce and operating procedures.
Applicable policy modules are selected from the facts you provide. Legal-content updates are checked against official government or regulator sources and CanLII before an approved edition is published.
Policy modules available for Prince Edward Island organizations
Hours of Work & Overtime Policy
Employment Standards Act, S.P.E.I. 2024, c. 66 (Chapter E-6.3)
Prince Edward Island's standard work week is 44 hours. Each hour beyond 44 in a week is overtime and must be paid at 1.5 times the employee's regular wage, unless a written averaging agreement or an Employment Standards Board exemption order applies. PEI does not have a daily overtime threshold. Employers must maintain accurate records of hours worked and ensure daily and weekly rest periods are provided.
PEI's 44-hour standard work week and written averaging-agreement or exemption-order rules can lead to confusion for multi-province employers. Without a clear policy, employers risk miscalculating overtime pay, failing to track hours properly, and facing complaints under the Employment Standards Act.
- 44-hour standard work week
- Overtime at 1.5x after 44 hours
- Written averaging agreement or Employment Standards Board exemption order may apply
- No daily overtime threshold in PEI
- Accurate time records required
- Rest periods must be provided
Minimum Wage Compliance Policy
Employment Standards Act, Minimum Wage Order
PEI's general minimum wage is $17.00 per hour, effective April 1, 2026. This rate applies to all employees covered by the Employment Standards Act. Employers must ensure all forms of compensation — including hourly, piece-rate, and commission-based pay — meet or exceed the minimum wage. PEI reviews and adjusts the minimum wage periodically based on economic conditions and cost of living considerations.
Missing a minimum wage increase creates immediate non-compliance across the entire payroll. PEI's minimum wage is reviewed regularly, and employers must update pay rates promptly. A clear policy ensures payroll teams implement changes on time and no employee falls below the statutory minimum.
- $17.00/hr general minimum wage (April 2026)
- Applies to all ESA-covered employees
- Includes piece-rate and commission workers
- Periodic reviews and adjustments
- Record-keeping requirements
- Tip and gratuity rules
Vacation & Public Holiday Policy
Employment Standards Act, S.P.E.I. 2024, c. 66, ss. 27–35
After 12 months of continuous work, PEI employees are entitled to at least 2 weeks of paid vacation (4% of wages) if they have worked for the same employer for 5 years or less, and at least 3 weeks (6%) if they have worked for more than 5 years. Paid vacation must generally be given within 4 months after the 12-month period ends, unless the employer and employee agree otherwise. PEI recognizes 8 statutory holidays: New Year's Day, Islander Day (3rd Monday of February), Good Friday, Canada Day, Labour Day, National Day for Truth and Reconciliation (September 30), Remembrance Day, and Christmas Day.
Vacation pay miscalculations — especially for employees with variable hours or seasonal work — are a frequent source of ESA complaints in PEI. The more-than-5-year threshold for increased vacation entitlement must be tracked, and public holiday pay rules must be clearly documented.
- 2 weeks vacation (4%) after 12 months when service is 5 years or less
- 3 weeks vacation (6%) after more than 5 years
- Paid vacation generally given within 4 months after the 12-month period
- 8 statutory holidays including Islander Day
- Holiday premium pay for work on stat holidays
- Vacation pay calculated on all wages
Termination & Notice Policy
Employment Standards Act, S.P.E.I. 2024, c. 66, ss. 59–61
After 90 days of continuous employment, PEI requires written termination or layoff notice (or pay in lieu) starting at 1 week and rising with service to 8 weeks at 15 years. Statutory exceptions include cause and specified short or disrupted employment situations. A separate six-week group notice applies where 10 or more employees representing at least 25% of the workplace are affected within two months. Common-law or contractual obligations may be greater.
Wrongful dismissal claims are costly and common. PEI's notice requirements differ from other provinces, and failing to provide proper notice or pay in lieu results in immediate liability. A clear termination policy protects both the employer and employee and reduces litigation risk.
- 1–8 weeks notice after 90 days, based on service
- Pay in lieu of notice permitted
- Employee resignation notice requirements
- Statutory exceptions must be assessed
- Six-week group notice can apply
- Common-law or contractual notice may exceed the statutory minimum
Workplace Health & Safety Policy
Occupational Health and Safety Act, R.S.P.E.I. 1988, c. O-1.01
PEI's Occupational Health and Safety Act requires employers to maintain a safe workplace, provide safety training, and comply with all applicable regulations. Workplaces with 20 or more employees must establish a Joint Health and Safety Committee (JHSC). Workplaces with 5 to 19 employees must designate a health and safety representative. Employers must report workplace injuries, conduct hazard assessments, and maintain safety records. Workers have the right to refuse unsafe work and to participate in workplace safety decisions.
Workplace injuries result in significant costs — from workers' compensation claims to regulatory fines and lost productivity. PEI's JHSC thresholds are specific to the province, and non-compliance with OHSA can result in prosecution, stop-work orders, and administrative penalties.
- JHSC required at 20+ employees
- Safety representative at 5–19 employees
- Right to refuse unsafe work
- Mandatory incident reporting
- Hazard assessments required
- Safety training documentation
- Workers' Compensation Board coverage
Human Rights & Anti-Discrimination Policy
Human Rights Act, R.S.P.E.I. 1988, c. H-12
PEI's Human Rights Act prohibits discrimination in employment on the basis of age, colour, race, ethnicity, disability, family status, gender expression, gender identity, marital status, political belief, religion, sex, sexual orientation, and source of income. Employers must accommodate employees to the point of undue hardship. Harassment, including sexual harassment, is prohibited. Employers are required to take reasonable steps to prevent and address discrimination and harassment in the workplace.
Human rights complaints in PEI can result in significant damages, including compensation for lost wages, general damages for injury to dignity, and orders requiring policy changes. A clear anti-discrimination policy demonstrates due diligence and creates a framework for handling complaints.
- Protected grounds under PEI Human Rights Act
- Duty to accommodate to undue hardship
- Sexual harassment prevention
- Complaint investigation procedures
- Reasonable steps to prevent discrimination
- Employer liability for workplace harassment
Maternity & Parental Leave Policy
Employment Standards Act, S.P.E.I. 2024, c. 66, ss. 45–48
Eligible pregnant employees may take up to 17 consecutive weeks of unpaid pregnancy leave, and eligible parents may take up to 62 consecutive weeks of unpaid parental leave within the statutory 78-week window. The combined pregnancy and parental leave taken for the same child is capped by the Act. Written notice, eligibility, reinstatement, benefit-plan, and extended-leave rules must be applied as set out in the Act.
Failure to provide proper maternity and parental leave, or to reinstate employees upon return, is a serious violation of the Employment Standards Act. Employers must also understand the interaction between provincial leave entitlements and federal Employment Insurance benefits.
- 17 weeks pregnancy leave
- 62 weeks parental leave
- 20-week eligibility rule
- Written application generally required
- Reinstatement and seniority protections
- Maximum combined period under the Act
Bereavement Leave Policy
Employment Standards Act, S.P.E.I. 2024, c. 66, s. 52
For an immediate-family death, prenatal pregnancy loss, or stillbirth covered by s. 52, an employee receives 1 paid day and 2 consecutive unpaid days. The death of another family member provides 3 consecutive unpaid days. The precise statutory family definitions and pregnancy-loss conditions must be applied.
Bereavement leave is a sensitive workplace matter. A clear policy distinguishes immediate-family and other-family entitlements and handles pregnancy loss and stillbirth compassionately and consistently.
- Immediate family: 1 paid + 2 unpaid days
- Other family: 3 unpaid days
- Covers qualifying pregnancy loss and stillbirth
- Statutory family definitions apply
- Regular wage rate for the paid day
- Consistent, compassionate administration
Sick Leave Policy
Employment Standards Act, S.P.E.I. 2024, c. 66, s. 43
After 30 days of continuous employment, PEI employees receive 4 unpaid sick days per employment year. Paid sick leave is additional: 1 paid day in the second year, 2 in the third year, and 3 in the fourth and each later year. Paid days may be used before unpaid days. Written confirmation may be requested only for an absence of 5 or more consecutive days and must come from a qualified practitioner.
PEI's progressive paid sick leave structure is unique among Canadian provinces. Employers must track each employee's tenure to calculate their correct entitlement. Failure to provide sick leave or improperly denying leave can result in ESA complaints.
- 4 unpaid days after 30 days of service
- Additional progressive paid sick leave
- 1 paid day in year 2, 2 in year 3, 3 in year 4+
- Paid days may be used first
- No annual carry-over
- Written confirmation only at 5+ consecutive days
Compassionate Care Leave Policy
Employment Standards Act, S.P.E.I. 2024, c. 66, s. 50
After 30 days of continuous employment, an employee may take up to 28 work weeks of unpaid compassionate care leave within one year, in increments of at least one work week, to provide end-of-life care and support to a family member at significant risk of death within six months. Written application and medical confirmation rules apply.
Compassionate care situations require immediate and flexible responses. Employers need clear policies to manage extended absences while protecting the employee's job. Understanding the interaction with federal EI compassionate care benefits is essential for supporting employees through these difficult situations.
- Up to 28 weeks unpaid leave
- Requires medical certificate
- Can be taken in blocks of 1+ weeks
- Job protection guaranteed
- Coordinates with EI compassionate care benefits
- Covers care for family members at risk of death
Domestic Violence Leave Policy
Employment Standards Act, S.P.E.I. 2024, c. 66, s. 54 and regulations
After 90 days of continuous employment, PEI employees may take up to 3 paid and 7 unpaid days for prescribed purposes related to domestic violence, intimate partner violence, or sexual violence. The statutory evidence, pay, privacy, and permitted-purpose rules apply.
Domestic violence leave is a critical safety provision. Employers must handle these situations with sensitivity and confidentiality. A clear policy ensures employees know their rights and managers understand their obligations, including the strict confidentiality requirements.
- Up to 10 days of leave
- First 3 days paid after 3 months of service
- Covers medical, legal, counselling, relocation
- Strict confidentiality requirements
- Available to victims and parents of child victims
- No retaliation permitted
Family Leave Policy
Employment Standards Act, S.P.E.I. 2024, c. 66, s. 49
After 30 days of continuous employment, a PEI employee is entitled to 3 unpaid family-leave days per employment year to provide care or support to a family member. Unused days do not carry forward.
Family leave provides essential flexibility for employees managing work-life balance. Without a clear policy, employers may inadvertently deny statutory entitlements or apply inconsistent standards across the workforce.
- 3 unpaid days per employment year
- Available after 30 days of service
- For care or support of a family member
- No carry-over
- General leave-request rules apply
- Eligible requests must be granted
Critically Ill Child Leave Policy
Employment Standards Act, S.P.E.I. 2024, c. 66, s. 51
After 90 days of continuous employment, an employee may take up to 36 work weeks of unpaid leave within one year, in increments of at least one work week, to care for a minor child whose life is at risk due to a critical illness or injury. Written application and medical confirmation rules apply.
Parents facing a child's critical illness need job-protected time away from work. Employers must have clear procedures for managing these extended absences while ensuring the employee's rights are fully protected under the Employment Standards Act.
- Up to 36 work weeks unpaid
- Available after 90 days
- Minor child's life must be at risk
- Medical confirmation required
- Taken in 1+ week increments
- One-year statutory window
Privacy & Personal Information Policy
Freedom of Information and Protection of Privacy Act, R.S.P.E.I. 1988, c. F-15.01
PEI's Freedom of Information and Protection of Privacy Act governs public bodies, not ordinary private-sector employment records. PIPEDA applies to commercial activities and to federally regulated organizations, but generally does not govern provincially regulated private-sector employee information as such. Every employer should still adopt clear, proportionate collection, use, retention, access, security, and breach-response practices and confirm any sector-specific duties.
Privacy breaches can result in regulatory complaints, reputational damage, and legal liability. A clear privacy policy protects both employee information and the organization's interests. PEI employers dealing with public sector contracts must also comply with FOIPP directly.
- Collect only necessary information
- Explain use and retention
- Use proportionate safeguards
- Set access and correction procedures
- FOIPP applies to public bodies
- PIPEDA scope depends on activity and regulatory jurisdiction
Court Leave Policy
Employment Standards Act, S.P.E.I. 2024, c. 66, s. 57
PEI employees called for jury duty or summoned as a witness in a court proceeding are entitled to unpaid leave for the required period. Employers cannot penalize, terminate, or discriminate against an employee for attending court. The employee must provide reasonable notice and, where possible, proof of the court requirement. Job protection is guaranteed for the duration of the court attendance.
Court attendance is a civic obligation that employers must accommodate. A clear policy prevents misunderstandings about employee rights and employer obligations when an employee receives a jury summons or witness subpoena.
- Unpaid leave for jury duty and witness attendance
- No termination or penalty permitted
- Reasonable notice required from employee
- Proof of court requirement may be requested
- Job protection guaranteed
- Covers full duration of court attendance
Workplace Harassment Prevention Policy
Occupational Health and Safety Act; Workplace Harassment Regulations; Human Rights Act
PEI employers are required to prevent workplace harassment under both the Occupational Health and Safety Act and the Human Rights Act. This includes developing a harassment policy, providing training to employees and managers, establishing a complaint investigation process, and taking corrective action when harassment is substantiated. Harassment includes any unwelcome conduct that a reasonable person would consider offensive, intimidating, or hostile.
Workplace harassment claims can result in human rights complaints, OHSA violations, and civil lawsuits. A comprehensive prevention policy is the employer's first line of defence and demonstrates the organization's commitment to a respectful workplace.
- Written harassment policy required
- Training for employees and managers
- Complaint investigation procedures
- Corrective action protocols
- Covers all forms of harassment
- Dual jurisdiction — OHSA and Human Rights Act
Record-Keeping & Payroll Compliance Policy
Employment Standards Act, S.P.E.I. 2024, c. 66, ss. 36–39
PEI employers must maintain accurate payroll records for all employees, including hours worked, wages paid, vacation pay, deductions, and leave taken. Records must be retained for a minimum of 3 years. Pay statements must be provided to employees with each pay period, showing gross pay, deductions, and net pay. Employers must also maintain records of any written agreements related to hours of work or overtime arrangements.
Incomplete or inaccurate payroll records make it difficult to defend against ESA complaints and can result in the burden of proof shifting to the employer. Proper record-keeping is essential for demonstrating compliance during inspections or audits.
- Minimum 3-year record retention
- Detailed pay statements required
- Hours worked must be accurately recorded
- Vacation and leave records maintained
- Written agreements preserved
- Records available for inspection
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Prince Edward Island Employment Law at a Glance
Minimum Wage
$17.00/hr
Apr 2026 ($17.30 Oct 1, 2026; $17.60 Apr 1, 2027)
Overtime Threshold
44 hrs/week
1.5x rate after threshold
Statutory Holidays
8 days
Including Islander Day
Vacation Entitlement
2–3 weeks
Based on years of service
Employment Standards Act, S.P.E.I. 2024, c. 66
The replacement Act, effective June 30, 2026, governs wages, hours, overtime, vacation, leave entitlements, and termination requirements for covered PEI employees.
Occupational Health and Safety Act
Establishes workplace safety standards, JHSC requirements, and employer obligations for hazard prevention.
Human Rights Act
Prohibits discrimination in employment and requires accommodation to the point of undue hardship.
Freedom of Information and Protection of Privacy Act
Governs collection, use, and disclosure of personal information by public bodies in PEI.
Workers Compensation Act
Provides no-fault workplace injury insurance and rehabilitation programs for injured workers.
Pay Equity Act
Applies to the PEI public sector; private-sector employers remain subject to applicable human-rights and employment-standards pay protections.
Smoke-free Places Act
Prohibits smoking in enclosed public places and workplaces, including vaping restrictions.
Labour Act
Governs labour relations, collective bargaining, and union certification in Prince Edward Island.
Victims of Family Violence Act
Provides protections for victims of family violence, including workplace leave entitlements.
Youth-employment rules
The Employment Standards Act and regulations contain protections and restrictions relevant to young workers; applicability depends on age and work.
Leave entitlements
- Maternity Leave: 17 weeks unpaid
- Parental Leave: Up to 62 weeks unpaid
- Bereavement Leave: Immediate family: 1 paid + 2 unpaid; other family: 3 unpaid
- Compassionate Care Leave: 28 weeks unpaid
- Sick Leave (Unpaid): 4 days per employment year after 30 days
- Sick Leave (Paid): 1–3 days progressive accrual
- Family Leave: 3 days unpaid per year
- Domestic Violence Leave: Up to 10 days (first 3 paid after 90 days), subject to the Act and regulations
- Critically Ill Child Leave: 36 work weeks unpaid after 90 days
- Court Leave: Duration of jury duty or witness attendance
- Pregnancy Loss/Stillbirth Leave: Included in bereavement leave
- Reservist Leave: Duration of service as required
All leave entitlements are job-protected under PEI's Employment Standards Act. Eligibility periods and notice requirements vary by leave type. Leave durations may coordinate with federal Employment Insurance benefits.