Prince Edward Island’s (PEI) Bill 76, which replaces the province’s existing Employment Standards Act (ESA), received Royal Assent in November 2024 and has been proclaimed into force as of June 30, 2026.

While the new legislation introduces numerous changes, employers should take note of the following key updates:

Working Hours, Scheduling, and Overtime

• The standard number of hours of work per week is reduced from 48 to 44, such that an eligible employee will now be entitled to overtime pay equal to 1.5 times the employee’s regular wage rate for all hours worked in excess of 44 hours.
• Employers must provide a written work schedule to employees at least one week in advance, except if there is a change in schedule that is unexpected, unusual, or due to an emergency.
• Employees must be provided with at least eight hours of rest every 24-hour period, subject to certain qualifications, and split shifts must be completed within 12 hours of each other.
• Employers and employees may agree in writing to overtime averaging over a period of up to four weeks.

Leaves of Absence

• Sick leave: an employee with at least 30 days of continuous employment is entitled to four unpaid sick days per calendar year for illness or injury. In addition, after a year of continuous employment, an employee is also entitled to one paid sick day, which increases to two paid sick days after two years and three paid sick days after three (or more) years. An employer may only request a sick note to verify...

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