Leave Policy in Canada

Canada's leave framework operates on two distinct tracks: federally regulated employees fall under the Canada Labour Code, while all other workers are governed by the employment legislation of their respective province or territory. These statutory rules establish the minimum entitlements that every employer must meet, and any company leave policy must be built on top of that legal foundation rather than in substitution of it.

For employers hiring across Canada, the central compliance challenge is correctly identifying which layer of legislation applies to each employee and ensuring that leave entitlements reflect the appropriate federal or provincial rules. Gloroots addresses this through its Global Employer of Record service, which applies the correct regulatory framework to each employee's record without requiring the employer to establish a local entity.

Leave Policy at a Glance

The table below summarizes federal entitlements under the Canada Labour Code. Provincial rules may provide greater minimums; employers must apply whichever standard is higher.

Overview and Legal Basis for Leave in Canada

Canada operates two parallel leave frameworks. The Canada Labour Code (R.S.C., 1985, c. L-2) governs federally regulated employees. Provincial and territorial employment standards acts cover everyone else.

Federally regulated industries include banking, telecommunications, interprovincial transport, postal service, broadcasting, and federal Crown corporations. The majority of Canadian workers fall under provincial legislation, not the federal code.

Statutory minimums set the legal floor. Employers may offer enhanced entitlements through employment contracts, collective agreements, or policy. Understanding how does EOR work helps clarify how those obligations are managed across jurisdictions without a local entity.

Quebec residents access parental benefits through the Quebec Parental Insurance Plan (QPIP) rather than federal Employment Insurance (EI).

Leave categories covered under the Canada Labour Code include:

• Vacation leave

• Sick leave

• Maternity and parental leave

• Bereavement leave

• Personal leave

• Domestic violence leave

• Traditional Aboriginal practices leave

• Leave for disappearance or death of a child

Annual Leave (Earned / Privilege Leave)

Under the Canada Labour Code, vacation entitlement scales with tenure. Employees receive two weeks after one year of service, three weeks after five years, and four weeks after ten years.

Vacation pay is calculated as a percentage of gross earnings: 4% for the first five years, 6% after five years, and 8% after ten years. This method applies to employees with variable or non-hourly pay and ensures compensation reflects actual earnings.

Employees must complete a qualifying year before taking vacation. Employers retain the right to schedule when vacation is taken, and advance scheduling is common practice.

On carry-forward, unused vacation generally cannot be forfeited. Encashment rules vary by province, so employers should confirm local requirements before setting policy.

Provincial variations to note:

• Quebec: Employees accrue one vacation day per month in year one, up to a maximum of two weeks. After one year, entitlement rises to two weeks. After three years, it increases to three weeks.

• Ontario: The Employment Standards Act mirrors federal minimums for most thresholds, providing two weeks after one year and three weeks after five years.

Vacation pay percentages and tenure thresholds are statutory minimums. Employers may offer more generous terms through employment contracts or company policy.

Public Holidays

Federally regulated employees in Canada are entitled to 10 general holidays under the Canada Labour Code. The 2025 dates are listed below.

When a general holiday falls on a weekend, employees receive a substitute day off, typically the preceding Friday or the following Monday, depending on the employer's practice.

Family Day is a provincial holiday observed under different names: Family Day in Alberta, British Columbia, New Brunswick, Ontario, and Saskatchewan; Louis Riel Day in Manitoba; Islander Day in Prince Edward Island; and Heritage Day in Nova Scotia. It is not a federal general holiday. Similarly, the Civic Holiday (first Monday in August) is optional and provincial, not a federal entitlement. For a comparison of public holiday frameworks in other markets, see the leave policy in the UK.

This table is subject to annual review as dates shift year to year.

Sick Leave

The Canada Labour Code provides two distinct sick leave entitlements: paid medical leave of up to 10 days per year and unpaid medical leave of up to 27 weeks.

Paid medical leave has a 30-day qualifying period. After 30 days of continuous employment, an employee may access 3 days immediately. From that point, 1 additional day accrues per month of employment, up to the 10-day annual cap. Unused days carry over, but the balance cannot exceed 10 days at any time.

Unpaid medical leave covers a broader set of circumstances, including illness, injury, organ donation, medical appointments, and quarantine. Work-related illness or injury leave is also unpaid under the Code, though an employer may maintain a wage-replacement plan that provides income during that period.

Employers may request supporting documentation within 15 days of the employee's return to work. Employees who exhaust paid leave and require extended time off may qualify for Employment Insurance sickness benefits, which pay up to 15 weeks at 55% of insurable earnings.

Casual Leave

Canada does not have a statutory casual leave category separate from personal leave under the Canada Labour Code. Personal leave functions as the practical equivalent.

Employees are entitled to five days of personal leave per calendar year. Permitted purposes include health obligations for any family member, education obligations for family members under 18, urgent situations, citizenship ceremonies, and other prescribed circumstances.

• First 3 days: paid, after 3 consecutive months of employment

• Remaining 2 days: unpaid

• Minimum period: 1 day per leave period

• Employers may request supporting documents within 15 days of the employee's return to work

Provincial rules vary. Ontario, for example, provides 3 unpaid family responsibility days under the Employment Standards Act rather than the federal five-day entitlement.

Maternity Leave

Pregnant employees in Canada are entitled to up to 17 weeks of maternity leave. Under Ontario's Employment Standards Act, an employee must have been employed for at least 13 weeks before the expected due date to qualify.

Leave can begin up to 17 weeks before the expected delivery date and extend to 18 weeks after birth. Employers are not required to pay during this period.

Employment Insurance (EI) maternity benefits pay 55% of insurable earnings, up to $483 ($668) per week in 2025, for up to 15 weeks. A two-week waiting period applies. In Quebec, the Quebec Parental Insurance Plan (QPIP) pays maternity benefits at 70% of normal earnings.

Maternity-related reassignment and leave

If a pregnant or nursing employee requests a job modification or reassignment, the employer must examine the request. During that examination, the employee receives paid leave at their regular wage rate. If reassignment is not practicable, unpaid maternity-related leave is available from the start of pregnancy through the end of the 24th week after birth. A healthcare practitioner certificate is required.

Pregnancy loss leave

Employees who experience a stillbirth (a foetus expelled or extracted on or after the 20th week of pregnancy or weighing 500g or more) are entitled to up to 8 weeks of leave. For other pregnancy loss, 3 days of leave apply, with the first 3 days paid after 3 consecutive months of employment. Leave must be taken within 26 weeks of the event and can be taken in one or two periods.

For a broader international comparison, see the leave policy in Germany, where parental leave entitlements follow a different statutory structure.

Paternity Leave

Canada has no standalone statutory paternity leave under the Canada Labour Code. Fathers and second parents access parental leave instead.

Under the standard EI parental benefit, parents receive 55% of insurable earnings up to $528 ($729) per week (2025 cap) for up to 40 weeks, with one parent capped at 35 weeks. Under the extended benefit, the rate drops to 33% of earnings up to $316 ($437) per week for up to 69 weeks, with one parent capped at 61 weeks. The choice between standard and extended benefits is irrevocable once the first week is paid.

Quebec operates separately under QPIP, which includes a dedicated paternity benefit of 5 weeks paid at 70% of normal earnings. This benefit is non-transferable to the other parent.

Many private employers supplement EI through top-up programs. According to Mercer, 82% of organizations providing parental benefits use an EI top-up, with a median employer-paid top-up period of 12 weeks.

Adoption and Surrogacy Leave

Adoptive parents are entitled to parental leave on the same basis as biological parents under the Canada Labour Code. Leave runs up to 63 weeks, or 71 weeks if shared between two parents, and must begin within 78 weeks of the child coming into the employee's care.

EI parental benefits are available to adoptive parents on the same terms as biological parents, covering both the standard and extended benefit streams. Job-protected reinstatement rights apply equally.

Surrogacy is not addressed as a separate leave category under the Canada Labour Code. Intended parents in surrogacy arrangements typically access parental leave under the standard provisions.

Employers may request proof of adoption placement as supporting documentation. In Ontario, the Employment Standards Act requires 13 weeks of employment before an employee becomes eligible to commence parental leave.

Bereavement Leave

Canada's bereavement leave rules differ based on who has died. The entitlement and leave window vary by relationship.

For the death of an employee's child, or a spouse's or common-law partner's child under 18 (or a child eligible for the Canada caregiver credit), the employee may take up to 8 weeks of leave. This leave must be taken within 12 weeks after the funeral, burial, or memorial service.

For the death of other immediate family members, employees may take up to 10 days of leave. This leave must be taken within 6 weeks after the funeral, burial, or memorial service.

In both categories, the first 3 days are paid, provided the employee has completed at least 3 consecutive months of employment. Remaining days are unpaid.

Other Leave Types

Canada's federal labour law provides several additional unpaid leave categories for serious personal and family circumstances.

Compassionate care leave allows up to 28 weeks within any 52-week period when a family member has a serious medical condition with a significant risk of death within 26 weeks, confirmed by medical certificate. Two or more employees may share this leave for the same family member, but the combined total cannot exceed 28 weeks. Leave must be taken in minimum one-week periods. A new 28-week entitlement becomes available after the initial 52-week period expires.

Critical illness leave provides up to 37 weeks in a 52-week period for a critically ill child under 18, and up to 17 weeks in a 52-week period for a critically ill adult. If multiple children are affected, a separate 37-week entitlement applies to each child. This leave cannot run concurrently with compassionate care leave for the same person. A healthcare practitioner certificate is required.

Leave for Victims of Family Violence totals 10 days per year. The first 5 days are paid after 3 consecutive months of employment; the remaining 5 days are unpaid. An employee is not eligible if they are accused of or are the probable perpetrator of the violence. The child covered must be under 18.

Reservists leave covers up to 24 months within any 60-month period. Employees must have 3 consecutive months of continuous employment and provide 4 weeks of written notice. Employers are not required to contribute to pension, health, or disability benefits during this leave.

Child disappearance or death leave provides up to 156 weeks under the Canada Labour Code when a child under 25 disappears or dies due to a probable crime. If both parents are federally regulated employees, their combined leave cannot exceed 156 weeks. Leave ends 14 days after a missing child is found alive. An employee is not eligible if charged with the crime.

State or Regional Variations in Leave Entitlements

Canada's dual federal and provincial framework creates material variation across 13 jurisdictions. Employers operating in multiple provinces must track separate eligibility thresholds, entitlement lengths, and pay rules for each location. Gloroots EOR services support local execution with centralized governance across these jurisdictions.

Carry-Forward and Leave Encashment Rules

Unused vacation cannot be forfeited in most Canadian jurisdictions. Employers may set scheduling policies, but employees retain the right to take accrued vacation. Some provinces require vacation to be taken within a defined period after the qualifying year ends.

On termination, unused vacation must be paid out in most jurisdictions. Mid-employment encashment rules vary by province, and employers should confirm local requirements before implementing any encashment policy. For a comparative reference, see how leave policy in India handles encashment obligations.

Under the Canada Labour Code, unused paid medical leave days carry over up to the 10-day maximum. Compassionate care and critical illness leave have no carry-over mechanism. Entitlement resets after the applicable 52-week window expires.

• Vacation accrual during leave: A 2026 Mercer finding shows 49% of multi-province employers continue paid vacation accrual during leave periods. Others suspend accrual or provide unpaid accrual only.

• Employer-enhanced policies: Employer policies may provide more generous carry-forward or encashment terms than statutory minimums. Statutory rules set the floor, not the ceiling.

Best Practices for Managing Leave Compliantly in Canada

Four practices reduce compliance risk across Canada's federal and provincial leave frameworks.

• Determine which framework applies. Identify whether each employee is federally or provincially regulated before applying any leave policy. The rules differ materially across 13 jurisdictions.

• Communicate entitlements clearly. Provide written leave policy documentation that distinguishes statutory minimums from employer-enhanced benefits. Inform employees of job and promotion opportunities during leave when requested in writing.

• Document requests and approvals. Maintain records of written notice, supporting documentation, and employer responses for all leave types. For personal, family violence, and Aboriginal practices leaves, employers may request supporting documents within 15 days of an employee's return.

• Set policy above the statutory floor where appropriate. Consider EI top-up programs. According to Mercer's 2026 data, 82% of organizations providing parental benefits use EI top-up, and median income replacement reaches approximately 95% of normal weekly earnings. Harmonized multi-province leave administration also reduces administrative overhead for employers with staff across several provinces.

Working with a best employer of record partner can support consistent policy application across jurisdictions.

Managing Leave Policy in Canada with Gloroots

Canada's dual federal and provincial framework creates a genuine compliance challenge. Leave entitlements, notice requirements, and documentation rules differ materially across 13 jurisdictions, and a single policy rarely satisfies all of them.

Gloroots tracks leave balances across both federal and provincial frameworks. The platform manages leave request and approval workflows, handles payroll integration for vacation pay calculations at 4%, 6%, or 8% of gross earnings depending on tenure and province, and supports Employment Insurance coordination.

Gloroots also manages reinstatement obligations, anti-reprisal protections, and benefit continuation requirements during leave. Compliance reporting gives HR and legal teams visibility into leave status across the workforce without manual reconciliation across jurisdictions.

For teams evaluating the cost of running employment in Canada, Gloroots provides predictable, country-specific pricing with no hidden entity costs.

Frequently Asked Questions About Leave Policy in Canada

The questions below cover the most common leave entitlements under Canadian federal and provincial law, including vacation, public holidays, parental leave, and reinstatement rights.

How much annual vacation are employees entitled to in Canada?

Under the Canada Labour Code, employees earn two weeks of vacation (4% vacation pay) after one year of continuous employment, three weeks (6%) after five years, and four weeks (8%) after ten years.

Provincial rules can differ. Quebec, for example, grants three weeks of vacation after three years of service rather than five, so employers should verify the rules that apply to each employee's province of work.

How many paid public holidays do federally regulated employees receive?

Federally regulated employees are entitled to 10 general holidays under the Canada Labour Code. These include National Day for Truth and Reconciliation on September 30 and Remembrance Day on November 11.

Provincially regulated employees receive holidays under their respective provincial legislation, which may include additional days such as Family Day.

What is the difference between standard and extended EI parental benefits?

Standard EI parental benefits pay 55% of insurable earnings, up to $528 ($729) per week in 2025, for up to 40 shareable weeks.

Extended benefits pay 33% of insurable earnings, up to $316 ($437) per week, for up to 69 shareable weeks. Once the first week of benefits is paid, the choice between the two options is irrevocable.

How many days of family violence leave are paid under the Canada Labour Code?

Employees are entitled to 10 days of family violence leave per year under the Canada Labour Code. The first 5 days are paid, but only after 3 consecutive months of employment.

The remaining 5 days are unpaid. An employee is not eligible if they are the accused or probable perpetrator of the violence.

What bereavement leave is available for the death of a child?

Under the Canada Labour Code, employees may take up to 8 weeks of bereavement leave following the death of their child or their spouse's or common-law partner's child. The child must be under 18 or eligible for the Canada caregiver credit.

The leave window closes 12 weeks after the funeral, burial, or memorial service.

Are employees entitled to reinstatement after taking leave in Canada?

Yes. Under the Canada Labour Code, employers must reinstate employees to the same or a comparable position with the same wages and benefits after any protected leave.

Employers cannot dismiss, suspend, lay off, demote, or discipline an employee for taking protected leave. Seniority continues to accrue throughout the leave period.

What notice must employees give before taking maternity or parental leave?

Under the Canada Labour Code, employees must provide at least four weeks' written notice before starting maternity or parental leave.

Changes to planned leave duration of more than four weeks also require four weeks' written notice. For most other leave types, employees must give written notice as soon as reasonably possible.