Frequently Asked Questions        

Employment Standards Act Commonly asked questions and answers about employers and their rights and obligations under the Employment Standards Act.

Occupational Health & Safety  Commonly asked questions about the responsibilities of employers regarding health and safety in the workplace.

Miscellaneous Q's  Questions that have yet to become a category.

Employment Standards Act

1. What is the minimum wage?

Information about the current minimum wage can be obtained from the following site.

2. What are the statutory holidays?

New Years Day, Islander Day (3rd Monday in February), Good Friday, Canada Day, Labour Day, Remembrance Day and Christmas Day

3. How does an employee qualify to be paid for a statutory holiday?

An employee must be working with the company for 30 calendar days prior to the holiday, earn wages on 15 of the 30 days prior to the holiday and work his/her last scheduled shift before the holiday and first scheduled shift after the holiday. All three criteria must be met in order to qualify.

4. How much vacation does an employee earn?

Vacation pay is paid at the rate of 4% of your gross earnings. After one year's continuous service with a company, the employee is entitled to two weeks vacation.

5. If an employee leaves a position, does he/she still receive vacation pay?

Yes, if an employee leaves a position voluntarily or involuntarily, he/she still receives any vacation pay owing based on 4% of gross earnings.

6. How much notice must an employee give to leave a position?

The first six months of employment is considered probationary and the employee may leave at any time without notice. If he/she is employed with a company between six months and five years, one week's notice in writing is required. If he/she is employed with a company more than five years, two week's notice in writing is required.

7. How much notice must a company give to terminate employment?

The first six months of employment is considered probationary and the company may terminate employment at any time without notice. If the employee is employed with a company between six months and five years, two week's notice or pay in lieu of notice is required unless terminated for just cause. If the employee is employed with a company between five years and ten years, four week's notice or pay in lieu of notice is required unless terminated for just cause. If the employee is employed with a company between ten and fifteen years, six week's notice or pay in lieu of notice is required unless terminated for just cause. If the employee is employed with a company for more than fifteen years, eight week's notice or pay in lieu of notice is required unless terminated for just cause.

8. If an employee leaves a position voluntarily or involuntarily, should he/she receive severance pay?

There are no legislative provisions for severance pay.  (This does not refer to terminating an employee without just cause; notice or pay in lieu will apply and differs based on years of service.)

9. Is an employee entitled to sick days?

After six months continuous service with a company, an employee is entitled to three days unpaid sick leave per year. If the three days are taken consecutively, upon request, the employee must provide a medical certificate from a doctor.

10. What breaks are employees entitled to?

An employee is entitled to one 30 minute unpaid break for every five hours worked. "Coffee breaks" or "smoke breaks" are not provided for under the Employment Standards Act.

11. When is an employee eligible for overtime?

In most positions, the standard work week is 48 hours after which the employee is eligible for time and one-half the regular rate of pay. Certain industries have exemptions to the standard work week. Please refer to the Standard Work Week Exemption Order.

12. When must the employer provide a final cheque and record of employment?

The employer must provide payment for all outstanding wages and benefits not later than the last day of the next pay period after termination of employment. Records of Employment are not covered under the Employment Standards Act as they are the responsibility of Human Resources Development Canada (HRDC).

13. Are all employers required to provide compassionate leave?

Yes, if the employee meets all conditions outlined in the PEI Employment Standards Act.

14. What deductions are employers allowed to take from my earnings?

Information regarding deductions can be found at the following site PEI Employment Standards Act .

The Guide to Employment Standards is available online.
 

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Occupational Health & Safety

1. What types of injuries have to be reported to Workers Compensation Board (WCB)?

The Occupational Health and Safety Act requires employers to immediately report all serious workplace accidents including but not limited to those that:

a) place life in jeopardy;
b) produce unconsciousness;
c) result in substantial loss of blood;
d) involve the fractures of a leg, arm, hand or foot;
e) involve the amputation of a leg, arm, hand or foot;
f ) consist of burns to a major portion of the body;
g) cause the loss of sight in an eye.

2. If my business is only open seasonally, do I have to pay for the full year?

The maximum period for coverage is 12 months (January 1 to December 31), but you may opt for a shorter period of coverage. (For example, June 1 to August 31.)

3. How do I report an accident?

A worker is required to notify the employer immediately of an injury which happened in the course of employment. 

All accidents require the Employer's Report to be sent by mail or fax to WCB within three days of being notified.  Failure to report may result in fines. 

Two types of injuries / accidents that need to be reported are (1) those that cause time away from work, and (2) those which require medical attention or therapy.

• The worker is required to complete and return Form 6, Worker's Report.*
• The employer is required to complete and return Form 7, Employer's Report.

* A good practice is to have copies of Form 6 readily available to take with the employee if they are going to the Emergency Department of the hospital.  Filling out the form while waiting to be seen by a physician will ensure this step is not forgotten and the information is fresh in your mind. 

4. What is required when someone is on claim?

Employers are to stay in regular contact with the worker and be an active and co-operative participant in the worker's treatment and return to work plan.

Employers who support and encourage injured workers to return to work early, save themselves money.  WCB offers several return to work programs which focus on an early recovery and safe return to work.

5. Are family members covered?

Any family member who is employed by a business, receives wages, and who is not a co-owner of the business is considered a worker under the Act.  This includes spouses, children, brothers, sisters, parents, etc.  The wages that you pay to these family members must be included in the total payroll reported to WCB. 

If you are employing children under the age of 16, please contact WCB for information about their status.  Also refer to the Employers Guide for New and Young Workers.

6. What is an occupational health and safety policy?

Where five or more workers are regularly employed, the employer is required by the OH&S Act to have an occupational health and safety policy that has been developed with staff (committee or representative) and it must be reviewed annually.  

Where the OH&S Act does not require a committee or a representative, an employer shall consult the workers regarding the proposed policy. An occupational health and safety policy is to express the commitment of the employer to occupational health and safety including:

• The commitment of the employer to cooperate with workers in pursuing occupational health and safety; and
• A statement of the responsibilities of the employer, supervisors and other workers in fulfilling the commitment.

7. Do working alone procedures always apply when only one employee is required?

Yes.  This does not mean that 2 employees must be on duty at all times, however it does mean that some type of communication or check in system must be maintained with the lone employee.  Information on how it applies to you can be found at Guide to Working Alone Regulations.

8. When do you need a safety committee?

If there are 5-19 employees working more than 3 months of the year, a safety representative must be selected by the employees to speak to management about health and safety concerns in the workplace.

If you employ more than 20 employees, a joint occupational health and safety committee is required.  At least half of the committee is to be employees with no supervisory duties and the remaining members can be from management.

9. Can a self-employed person be covered?

Yes, personal coverage is available to all employers and to independent operators (self-employed persons with no employees) although it is optional.

Applications for Personal Coverage will be approved only where there is:
a) a minimum coverage period of three months; and
b) a minimum annual coverage amount of $6000.

10. Do I need a first aid kit when I only have 5 staff?

Yes.  Every employer must provide and maintain first aid supplies on the premises whether you have 1 employee or 1001.  Section 9: First Aid of the OH&S General Regulations outlines what is required of an employer and lists what is needed in a first aid kit.  The requirements differ depending on the size of your staff. 

The Workers Compensation Board has a multitude of useful information on health and safety including forms, templates, guides, posters, etc.  You can find them at Publications.  Example titles include: 
          Information for Employers,  
          Employers Guide for New and Young Workers, 
          Disability Duration Guidelines and Expected Healing Times,
          and much more.  

Employers have the additional resource of the Employer Advisor who is available to answer your questions and provide guidance.  Contact: Keith Mullins, Employer Advisor or go to the Employer Advisor website.

The above is only meant to provide preliminary information in response to some common questions from employers.  Please refer to the Workers Compensation Board of PEI for details on the Acts and Regulations.    

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Miscellaneous Q's

1. When implimenting a new performance evaluation system, where do you start?

Once the implimentation steps have been determined including design, purpose(s), and measurements, starting with your managers will probably be the best approach.  By beginning with managers you will be modeling the review process for them to follow and will also be setting the standards.

 2. How much do you have to pay an employee if you call them in but only need them for one hour?

The minimum an employer pays for a call-in is three hours of wages.  If you only need them for one hour, consider putting off the task for another regular shift or get the employee to do other tasks to fill three hours.  Cleaning shelves, organizing stock or working on client databases are all jobs that can be done anytime.

3.  Is it okay for employees to work more than 48 hours per week without paying overtime if they are asking for the hours and said they don't need to be paid extra?

Unfortunately no.  Everyone is subject to the Employment Standards Act.  Even in situations where employees agree to work without overtime pay, the arrangement is invalid and overtime pay must be paid.

* The only exception is when a collective agreement, registered with the Labour Board, supersedes that particular issue in the Act as a result of union or certified bargaining unit negotiating it out, generally being substituted with other more generous offerings.

4.  Can I use a Social Insurance Number as an employee number?

Although employers commonly used SINs in the past for payroll or employee numbers, it it not an advisable practice.  There is no legislation against it, however SINs are not to be used for purposes other than those related to taxation purposes.  Details can be found in the Fact Sheet provided by the Office of the Privacy Commissioner of Canada.

5.  Do I need to pay out a bonus if an employee is being terminated due to poor performance? 

When setting up a bonus system it is best to clearly outline the intention of the bonus, define the measurements used, indicate the time period it applies to, and explain how employees can achieve the requirements.  Once these items are clearly identified and communicated they should be signed off on by the employee and employer and filed for future reference.  Bonuses can be extremely effective motivators; however they can also become complicated and onerous so it is best to plan them out thoroughly before implementing. 

You may also want to check Tips & Gratuities and Termination on the Employment Standards website.

6.  I gave new tasks to reward an employee for doing his job well, but it seems to have been a mistake.  He spends too much time on unnecessary details with the new tasks and it is creating a bottle neck in the workload.  What do I do with him now?  

The first thing is to understand your own perspective and determine what the problem is.  Are you frustrated that he is not able to continue doing his original duties to the same standards?  Are you feeling pressure from other staff who might feel jealous that you have rewarded him with new challenges? 

Second, was the appointment of new duties appropriate in the first place?  Is his personality actually too detailed for that piece of work or is he still learning the new duties?  Does he have the proper resources to do the job?  Have the new duties been clearly explained with expectations defined? 

Third, consider the implications of taking action.  What are your options?  Can you outline the outcomes you are expecting with timelines and goals specified?  Do you need to offer him training?  What are the repercussions of retracting the extra duties?

Many times we get frustrated with employees when they are not performing the way we had envisioned, whether it is because of a different approach, process or work style.  These are just a few ideas to start considering when you get frustrated.  Look at the employees' work outcomes and consider how it fits into the larger picture.  Ensure that you have set the employee up to be successful from the beginning, but if you have not done this before, you can make a difference now.  Whenever possible, work with your employees to make them the best they can be.

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For more information contact the HR Advisor, Andrea Boehner, at aboehner@tiapei.pe.ca or call (902) 566-5008.