New rules include changes to job-protected leave, termination notices, group layoffs

HR teams in Prince Edward Island have just over two weeks to rewrite their leave, scheduling and termination policies before the province's new Employment Standards Act (ESA) comes into force on June 30 — the most significant overhaul of Island employment law in nearly two decades.

The provincial government says the new Act modernizes the rights and obligations of both employers and employees. It stems from an independent Comprehensive Review Panel whose two-year review produced a final report with 110 recommendations; rather than amend the existing law, the province passed an entirely new Act in the legislature in fall 2024.

"Modernizing and clarifying the rules for both employers and employees is an important way government can support fair and balanced workplaces," said Zack Bell, Minister of Workforce and Advanced Learning. The changes mark one of the most significant updates to employment standards in years, he said.

Expanded leave and sick-day rules

The headline change for HR is a new entitlement to up to 27 weeks of unpaid, job-protected medical leave for treatment of or recovery from an illness or injury, organ or tissue donation, gender-affirming care, or other approved medical procedures.

"There are already enough worries that come with a cancer diagnosis, wondering if you'll have a job to return to shouldn't be one of them," said Canadian Cancer Society senior manager of...

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