On June 30, 2026, Prince Edward Island's new Employment Standards Act (“Act”) came into force, replacing the previous legislative framework and introducing significant changes to minimum employment standards in the province.
According to the provincial government, the Act is designed to modernize employment standards while strengthening the rights and responsibilities of both employers and employees.
Key changes include:
- Medical Leave – Eligible employees are entitled to up to 27 weeks of unpaid, job-protected medical leave for qualifying absences related to long-term illness or injury, organ or tissue donation, gender-affirming care, and certain other approved medical procedures.
- Sick Leave: Eligible employees are entitled to 4 unpaid sick days per year after completing 30 days of employment. Employers may generally request medical documentation only where an employee has been absent for five or more consecutive days, and the documentation may be provided by certain licensed health professionals, where permitted under the Act.
- Hours of Work and Scheduling: The standard maximum work week is reduced from 48 hours to 44 hours (subject to certain industry-specific exceptions).
- Employers must provide employees with their work schedules at least 1 week in advance, except where extenuating circumstances make this impracticable.
- Employees must receive at least 8 hours of rest between shifts, subject to limited exceptions.
- Vacation: Employees are now entitled to 3 weeks of vacation after 5 years of employment, rather than 8 years.
- The Act also clarifies vacation-related rules for part-time, seasonal and short-term employees.
- Termination and Group Layoffs: Employees are entitled to statutory notice of termination after 90 days of employment, reduced from the previous 6-months eligibility requirement.
The new notice requirements are as follows:
| Length of Service | Notice Required |
| 90 days to less than 1 year | 1 week |
| 1 to less than 5 years | 2 weeks |
| 5 to less than 10 years | 4 weeks |
| 10 to less than 15 years | 6 weeks |
| 15+ years | 8 weeks |
- New group termination provisions require employers that meet specified thresholds to provide 6 weeks' notice to affected employees, any applicable union, and the provincial government.
- Complaints and Fines: The limitation period for filing complaints with the Employment Standards Branch has increased from 1 year to 2 years
- Inspectors are now authorized to issue administrative penalties ranging from $500 to $1,500 for non-compliance, without requiring a court process.
- Maximum court-imposed fines have increased to $25,000 for corporations and $5,000 for individuals, with minimum fines of $1,000 and $200, respectively.
Employers with operations in Prince Edward Island should review their employment agreements, workplace policies, and practices to ensure compliance with the new legislative requirements. If you require assistance, please don’t hesitate to reach out to speak to an e2r® Advisor.