Understanding PEI's Employment Standards

All businesses with employees must follow Employment Standards. You must first determine whether your business is federally or provincially regulated. If, like almost 90% of businesses your company is regulated provincially, check out the helpful guidelines on employment rights available through the website of Prince Edwards Island’s Department of Workforce, Advanced Learning and Population. Better yet, call our Business Advisors for timely answers to your questions.

What is Prince Edward Island’s minimum wage?

The current minimum wage is $15.00.  

The minimum wage rate applies to a work week of 48 hours or less. 

There is more pay issue information, including how to calculate overtime, reporting and deductions available on PEI’s Pay Issues page

How do I pay my staff for public holidays?

Generally, to receive a day off with pay for public holidays, an employee must:

  • Have been employed with the same employer for at least 30 days prior to the holiday,
  • Have earned pay on at least 15 of the 30 days before the holiday, and
  • Worked their last scheduled shift before the holiday and first scheduled shift after the holiday.

If your employee qualifies for the public holiday and is given the day off, you must pay a regular day's pay for that holiday.

When employees work on a holiday and are qualified to be paid holiday pay, they are entitled to: 

  • receive the amount they would have normally received for that day AND one and a half times their regular rate of wages for the number of hours worked on that holiday, OR
  • they can earn their regular wages for the hours worked on the holiday AND receive another day off with pay before their next vacation. 

For more details on these regulations and information on workers that are not covered by the rules for holiday pay, visit the fact sheet on paid public holidays.

What are the mandatory food and rest breaks for employees?

An employee must be given a 30-minute unpaid food or rest break if their shift is longer than five consecutive hours. If an employee does not receive their full half hour of rest, then they must be paid for the half hour. An employee is not required to stay in the workplace during their half hour break. 

How do I calculate vacation pay?

Vacation Pay is calculated as 4% of gross wages. For employees having worked for the same employer over a period of eight years or more, this rate rises to 6%.

What are the Leaves of Absence in PEI?

The Prince Edward Island Employment Standards Act requires employers to grant periods of leave. Some of these leaves are unpaid and some are paid.

Our article PEI Leaves of Absence: paid and unpaid looks at the most common types of leave from work and what your responsibilities to your employees are as an employer.

What steps must I take to terminate an employee?

Warning:  Firing can be dangerous to your business' health - many exceptions, levels of legislation and regulation may apply. Please call a CFIB Business Advisor at 1-833-568-2342 before taking any action.

Where can I find more information about PEI Employment Standards? 

Download the Guide to Employment Standards for more details on any of the above information.