Let’s “count down” New Year’s Day & Day After New Year’s Day legislative requirements

A new year often inspires fresh starts and resolutions to make things better in the year ahead! And if you’re a payroll practitioner or business owner, it’s a great reminder to set yourself up now for success in the months to come.

One way to tackle this is to brush up on legislative compliance, and there’s no time like the present: New Year’ Day and Day After New Year’s Day are subject to specific banking and statutory holiday legislation, and are right around the corner.

In Canada, it’s common for this type of legislation to differ between provinces and territories, as well as between federally-regulated or industry-specific workplaces (for example, retail). As such, there are not only bank closures to navigate but also knowing how statutory or general holiday pay applies to employees where your business operates.

First of all – what are these days of significance?

January 1 of every calendar year is generally referred to as New Year’s Day, and is legislatively recognized as a statutory holiday in every province and territory (more on that below!).

The Day After New Year’s Day falls on January 2 of every calendar year, and unlike New Year’s Day, it’s not a recognized statutory holiday in any jurisdiction in Canada. However, it’s a day of significance because it’s a designated banking holiday in the Province of Québec (meaning that banks are closed). It’s also a day off for Québec Government workers. Canadian businesses – yes, even those without operations in Québec – should be aware of Day After New Year’s Day so that they can adjust their payroll processing and payment dates accordingly if their banking institution is affected by this holiday. Day After New Year’s Day is typically recognized on January 2 or a day in lieu of if it falls on a non-working day.

Let’s take a closer look at legislation for both of these stat holidays by province and territory…

Federal 

New Year’s Day is a federally-regulated statutory holiday, meaning it’s important for Canadian employers to be aware of how this day can possibly impact and change both their payroll processing and pay dates. This is because Payments Canada, the organization responsible for payment clearing and settlement, is federally regulated and as such observes the New Year’s Day statutory holiday.

As mentioned above, Day After New Year’s Day is not a federally-regulated statutory holiday.

For a list of federally-regulated workplaces, visit: https://www.canada.ca/en/services/jobs/workplace/federally-regulated-industries.html.

British Columbia (BC)

There are 11 statutory holidays in BC and New Year’s Day is one of them, which means employees are to be compensated for working on or in lieu of January 1 if they qualify.

Unlike New Year’s Day, the Day After New Year’s Day is not a recognized stat holiday in the province.

For more information on statutory holidays in BC, visit: https://www2.gov.bc.ca/gov/content/employment-business/employment-standards-advice/employment-standards/statutory-holidays.

Alberta

New Year’s Day is a general holiday in Alberta, and eligible employees are to be paid for working on or in lieu of January 1.

The Day After New Year’s Day (January 2) is not designated as a general holiday in the province.

For more information on general holidays in Alberta, visit: https://www.alberta.ca/alberta-general-holidays#general-holidays-new-years-day.

Saskatchewan

There are 10 public holidays in Saskatchewan and New Year’s Day is among them. Businesses can either close on a public holiday (with qualifying employees receiving a day off with pay), or remain open, with the employees working and receiving pay for working a public holiday.

Unlike New Year’s Day, Day After New Year’s Day (January 2) is not considered a public holiday in Saskatchewan.

For more information on public holidays in the province, visit: https://www.saskatchewan.ca/business/employment-standards/public-statutory-holidays/list-of-saskatchewan-public-holidays.

Manitoba

There are nine general holidays in Manitoba, and New Year’s Day is one of them. Typically, most employees will receive general holiday pay whether they are working or not.

The Day After New Year’s Day (January 2) is not designated as a general holiday in Manitoba.

For more information on general holidays in Manitoba, visit: https://www.gov.mb.ca/labour/standards/doc,gen-holidays-after-april-30-07,factsheet.html#q12.

Ontario

New Year’s Day is one of the nine public holidays in Ontario. Generally, employees who qualify receive January 1 off and receive paid public holiday pay.

In the Province of Ontario, Day After New Year’s Day (January 2) is not designated as a public holiday.

For more information on public holidays in Ontario, visit: https://www.ontario.ca/document/your-guide-employment-standards-act-0/public-holidays.

Québec

There are eight paid statutory holidays in Québec and New Year’s Day is one of them. Employees are entitled to the day off and an indemnity.

Day After New Year’s Day is not designated as one of the eight paid statutory holidays in the province; however, it’s considered a banking holiday in Québec. As such, banks and government offices are typically closed on this day or a day in lieu if it falls on a non-working day. Businesses should be aware of how this day can impact their payroll processing and payment dates and adjust accordingly if their banking institution is affected by this holiday.

For more information about statutory holidays in Québec, visit: https://www.cnesst.gouv.qc.ca/en/working-conditions/leave/statutory-holidays/list-paid-statutory-holidays.

Newfoundland and Labrador

In Newfoundland and Labrador there are six public holidays, and New Year’s Day is one of them.

Unlike New Year’s Day, Day After New Year’s Day (January 2) is not designated as a paid holiday in the province.

For more information about paid holidays in Newfoundland and Labrador, visit: https://www.gov.nl.ca/ecc/files/Publications_Labour_Relations_At_Work_Updates_October-2022.pdf. 

New Brunswick

There are eight paid public holidays in New Brunswick and New Year’s Day is one of them. If an employee qualifies for a paid public holiday, such as January 1, they receive a regular day’s pay if they don’t work; if they do work on that day, they receive 1.5 times their regular wages for the hours worked in addition to a regular day’s pay.

Day After New Year’s Day (January 2) is not designated as a paid public holiday in New Brunswick.

For more information about paid public holidays in New Brunswick, visit: https://www2.gnb.ca/content/dam/gnb/Departments/petl-epft/PDF/es/FactSheets/PublicHolidaysVacation.pdf.

Nova Scotia

New Year’s Day is one of the six paid holidays in Nova Scotia, where eligible employees are entitled to a paid holiday.

Day After New Year’s Day (January 2) is not a paid holiday in the province.

For more information on paid holidays in Nova Scotia, visit: https://novascotia.ca/lae/employmentrights/holidaychart.asp.

Prince Edward Island (PEI)

Eligible employees receive eight paid holidays in PEI, and New Year’s Day is one of them.

Unlike New Year’s Day, Day After New Year’s Day (January 2) is not designated as a paid holiday in the province.

For more information on paid holidays in PEI, visit: https://www.princeedwardisland.ca/en/information/workforce-advanced-learning-and-population/paid-holidays.

Yukon

Qualified employees receive a day off with holiday pay for New Year's Day, as it's a statutory holiday in the Yukon.

Day After New Year’s Day (January 2) is not designated as a statutory holiday for businesses and employees in the Yukon.  

For more information on statutory holidays in the Yukon, visit: https://yukon.ca/en/find-yukon-statutory-holiday.

Northwest Territories

New Year's Day is one of the statutory holidays in the Northwest Territories.

For businesses and employees in the Northwest Territories, Day After New Year’s Day (January 2) is not designated as a statutory holiday.  

For more information on statutory holidays in the Northwest Territories, visit: https://my.hr.gov.nt.ca/employees/leave-time/statutory-holidays.

Nunavut

New Year’s Day is a public service holiday in Nunavut.

Day After New Year’s Day is not designated as a public service holiday in Nunavut.

For more information on public service holidays in Nunavut, visit: https://gov.nu.ca/finance/information/public-service-holidays.

New Year’s resolution or not, paying staff accurately and ensuring legislative compliance should always be top of mind! It’s important for Canadian businesses to stay up-to-date with holidays and important dates, such as New Year’s Day and Day After New Year’s Day. Download a free copy of Payworks’ Payroll Guide to help you and your business navigate federal and provincial holidays, bank closures, and other important payroll legislation in Canada: https://www.payworks.ca/landing-pages/campaigns/payroll-guide.