How is Labour Day pay calculated in Ontario?

 

If you work in Ontario, Labour Day is a public holiday, which means eligible employees may be entitled to a paid day off or special pay if they work.

In 2026, Labour Day falls on Monday, September 7.

But Ontario's statutory holiday rules can be confusing. 

This guide explains the Ontario Labour Day statutory holiday pay rules in effect as of August 19, 2026, based primarily on Ontario's Employment Standards Act (ESA) and the Ontario government's official employment standards guidance.

When Is Labour Day 2026 in Ontario?



Labour Day 2026 is Monday, September 7.

Labour Day is one of Ontario's nine public holidays covered by the Employment Standards Act.

For most eligible employees, the basic entitlement is either:

  1. A day off with public holiday pay, or

  2. If the employee works on the holiday, a combination of regular wages and/or premium pay or a substitute paid day off, depending on the arrangement.

The exact entitlement depends on whether Labour Day is normally a working day for you and whether you agree to work on the holiday.


Who Is Eligible for Labour Day Statutory Holiday Pay?

Ontario's public holiday rules generally apply to full-time, part-time, permanent and term-contract employees.

You do not have to have worked for your employer for a specific minimum number of days to qualify.

However, there is an important condition known as the "Last and First Rule."

Generally, you must work your entire:

  • last regularly scheduled day before the public holiday, and

  • first regularly scheduled day after the public holiday

unless you have reasonable cause for not doing so.

For example, if you normally work Monday to Friday, your relevant days around Labour Day 2026 would normally be:

  • Friday, September 4 — last regularly scheduled workday before Labour Day

  • Monday, September 7 — Labour Day

  • Tuesday, September 8 — first regularly scheduled workday after Labour Day

If you miss September 4 or September 8 without reasonable cause, you could lose your entitlement to public holiday pay.

What counts as "reasonable cause"?

Ontario's guidance generally describes reasonable cause as something beyond the employee's control that prevented them from working.

Examples can include circumstances where the employee genuinely could not work for reasons outside their control.

Simply deciding not to show up for work is different from having reasonable cause.

It is also important to understand that the "last" and "first" workdays do not necessarily have to be the calendar days immediately before and after Labour Day.

If you are not scheduled to work on Friday, September 4, for example, your last regularly scheduled workday might be Thursday, September 3.


How Is Labour Day Statutory Holiday Pay Calculated in Ontario?

This is one of the most important parts of the Ontario rules.

For most employees, public holiday pay is calculated as:

**Regular wages earned in the four work weeks before the work week containing Labour Day

  • vacation pay payable during that period
    ÷ 20**

In formula form:

Public Holiday Pay = (Regular Wages + Vacation Pay) ÷ 20

This is the current Ontario formula under the Employment Standards Act.

What counts as regular wages?

Ontario's definition excludes certain types of payments from the calculation.

For example, regular wages generally do not include:

  • overtime pay

  • vacation pay

  • public holiday pay

  • premium pay

  • termination pay

  • severance pay

  • certain statutory leave payments

The calculation is therefore not simply "one day's regular salary."


How Much Labour Day Pay Would You Get? (Example)

Suppose an employee earned $4,000 in regular wages during the four work weeks before the week containing Labour Day.

Assume there is no vacation pay that needs to be added.

The calculation would be:

$4,000 ÷ 20 = $200

The employee's Labour Day public holiday pay would therefore be $200.

This does not necessarily mean every employee receives the same amount. Someone working part-time or with fluctuating hours could receive a different amount because the calculation is based on their actual eligible wages during the relevant four-week period.


What If You Work on Labour Day?

Working on Labour Day does not necessarily mean you simply receive your normal hourly wage.

There are different arrangements under Ontario's ESA.

If you and your employer agree that you will work on a public holiday, one possible arrangement is:

Regular wages for the hours worked + a substitute day off with public holiday pay.

Another possible arrangement, if agreed to, is:

Public holiday pay + premium pay for each hour worked.

Premium pay is generally 1.5 times your regular rate of pay.

Example

Suppose you earn $20 per hour and work 8 hours on Labour Day.

Your premium rate would be:

$20 × 1.5 = $30 per hour

For 8 hours:

$30 × 8 = $240

If you are using the arrangement where you receive public holiday pay plus premium pay, you could receive:

  • Public holiday pay: calculated separately using the Ontario formula

  • Premium pay: $240

So the total would not simply be $240. Your public holiday pay would be added according to the applicable arrangement.

Ontario's official guidance provides an example where an employee receives both public holiday pay and premium pay when working on a public holiday.


What Is a Substitute Holiday?

Instead of receiving public holiday pay plus premium pay, an employee who works Labour Day may, under the applicable arrangement, receive a substitute day off with public holiday pay.

For example:

Labour Day — Monday, September 7, 2026

You work your normal shift and receive your regular wages for the hours worked.

Your employer then gives you another normal working day off, and that substitute day is paid with public holiday pay.

The substitute day generally must be within three months of the public holiday.

However, if the employee and employer agree, it can be scheduled up to 12 months after the public holiday.

There are also written-notice requirements when a substitute day is being used. Ontario's ESA provides that the employer must give the employee a written statement before the public holiday identifying the public holiday, the substitute date and the date the statement was provided.


What If Labour Day Is Normally Your Day Off?

This is an area where many employees misunderstand the rules.

If Labour Day falls on a day that would not ordinarily be a working day for you, different provisions can apply.

For example, imagine you normally work Tuesday through Saturday.

Labour Day 2026 is Monday, September 7, which is already your normal day off.

That does not necessarily mean you simply lose the holiday entitlement.

Ontario's ESA contains specific rules for situations where a public holiday falls on a day that would not ordinarily be a working day. In some circumstances, the employee and employer can agree that the employee will work on the holiday and receive regular wages plus a substitute paid holiday, or receive public holiday pay plus premium pay.

Your actual schedule and the arrangement with your employer matter.


What If You Are Part-Time?

Being a part-time employee does not automatically disqualify you from statutory holiday pay in Ontario.

Ontario specifically states that qualified employees can be full-time, part-time, permanent or term-contract employees.

The amount of public holiday pay, however, can be different because it is based on eligible wages earned during the relevant four-week period.

So a part-time employee who works fewer hours may receive less public holiday pay than a full-time employee.


What If You Are on Vacation Around Labour Day?

Being on vacation does not automatically mean you lose your Labour Day entitlement.

Ontario's guidance provides examples showing that an employee can remain entitled to public holiday pay while on vacation, provided the applicable qualifying requirements are met.

The calculation can also include vacation pay payable during the relevant four-week period, depending on how the vacation pay was provided.

This is particularly important because vacation pay can affect the Labour Day public holiday calculation.


What If You Miss Work Before or After Labour Day?

This is probably the rule employees should pay the most attention to.

Suppose you normally work Monday through Friday.

You are scheduled to work:

Friday, September 4 → Labour Day → Tuesday, September 8

If you simply decide not to come to work on Friday, September 4, without reasonable cause, you may lose your Labour Day public holiday entitlement.

The same can apply if you fail to work your first regularly scheduled day after the holiday without reasonable cause.

However, the rule looks at your regularly scheduled workdays, not necessarily Friday and Tuesday specifically.

For example, if your workplace does not schedule you on Friday, your relevant "last regularly scheduled day" could be Thursday.


What If You Work in a Restaurant, Hotel or Hospital?

Some industries have special rules.

Ontario's ESA allows employers in certain operations, including:

  • hospitals

  • continuous operations

  • hotels and motels

  • tourist resorts

  • restaurants

  • taverns

to require employees to work on a public holiday in certain circumstances.

When these special provisions apply, the normal rules for employees who simply agree to work on a public holiday may not apply in the same way. Specific rules determine whether the employee receives a substitute holiday or public holiday pay plus premium pay.

This is why someone working in an office and someone working in a restaurant may have different Labour Day arrangements even though both are Ontario employees.


Does Every Ontario Worker Get Labour Day Off?

No.

Labour Day is a public holiday, but that does not mean every workplace must close.

Many businesses continue operating on public holidays, including restaurants, hotels, hospitals, retail businesses and other services.

Instead, the Employment Standards Act generally establishes the employee's entitlement to public holiday pay and/or time off rather than requiring every business to shut down.

Some occupations are also excluded from or subject to special rules under the ESA.

If you are unsure whether your particular job is covered, Ontario recommends checking the employment standards rules for your occupation and using its Employment Standards Self-Service Tool.


Labour Day 2026: Quick Reference

SituationGeneral Ontario rule
Eligible employee does not work Labour DayDay off + public holiday pay
Employee works Labour DayRegular wages/premium or substitute holiday, depending on arrangement
Premium payAt least 1.5× regular rate
Part-time employeeCan qualify
Employee misses last scheduled day before holiday without reasonable causeMay lose public holiday entitlement
Employee misses first scheduled day after holiday without reasonable causeMay lose public holiday entitlement
Substitute holidayGenerally within 3 months
Substitute holiday by agreementCan be up to 12 months later
Labour Day 2026Monday, September 7

These are the general ESA rules; exemptions and special industry rules can change the result for particular employees.


Frequently Asked Questions About Labour Day Pay in Ontario

Is Labour Day a statutory holiday in Ontario in 2026?

Yes. Labour Day is one of Ontario's public holidays. In 2026, it falls on Monday, September 7.

Do I get paid if I don't work on Labour Day?

If you are an eligible employee and meet the applicable requirements, you generally receive public holiday pay for Labour Day.

How is Labour Day pay calculated in Ontario?

For most employees, public holiday pay is calculated by adding regular wages earned and vacation pay payable during the four work weeks before the work week containing Labour Day, then dividing the total by 20.

Do part-time workers get statutory holiday pay in Ontario?

Yes. Part-time employees can qualify for public holiday entitlements. Their payment is generally based on the statutory calculation rather than simply being a fixed full-time day's wage.

Do you get time and a half for working Labour Day in Ontario?

Premium pay is generally 1.5 times the employee's regular rate when the premium-pay arrangement applies. However, Ontario also allows certain arrangements involving a substitute paid holiday, so not every employee who works Labour Day will simply receive time-and-a-half plus a day off.

What happens if I call in sick before Labour Day?

If you have reasonable cause for missing your last regularly scheduled day before the holiday, you can still qualify for the public holiday entitlement. If you miss that day without reasonable cause, you may lose the entitlement.

Can my employer make me work on Labour Day?

In some circumstances, yes. Certain industries have special rules allowing employers to require employees to work on public holidays. Other situations involve an agreement between the employee and employer. The compensation rules depend on which provision applies.


What Ontario Employees Should Check Before Labour Day 2026

Before the September 7 holiday, it is worth checking four things:

1. Is Labour Day normally a working day for you?

Your normal schedule affects which public holiday rules apply.

2. Are you scheduled to work on September 4 and September 8?

These may be your last and first regularly scheduled workdays around the holiday.

3. Are you being asked to work on Labour Day?

Ask whether your employer is using the substitute holiday arrangement or the public holiday pay + premium pay arrangement.

4. Check your paystub after the holiday.

If the amount looks different from what you expected, compare it with the Ontario public holiday pay formula and your hours and wages during the relevant four-week period.


The Bottom Line

For most eligible Ontario employees, Labour Day 2026 is a paid public holiday on Monday, September 7.

The important point is that statutory holiday pay is not simply an automatic extra day's salary. Ontario uses a specific formula based on eligible regular wages and vacation pay from the four work weeks before the week containing the holiday.

If you work on Labour Day, you may receive premium pay of at least 1.5 times your regular rate, or you may receive regular wages for the hours worked together with a substitute paid holiday, depending on the arrangement.

And if you want to protect your holiday entitlement, pay particular attention to Ontario's Last and First Rule: failing without reasonable cause to work your last regularly scheduled shift before or your first regularly scheduled shift after Labour Day can affect your entitlement.

Because employment standards can have exemptions and special rules for particular occupations, employees with unusual schedules or jobs in specially regulated industries should check the specific Ontario rules that apply to their position.

Official reference: Ontario government's guide to public holidays under the Employment Standards Act