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There are 2 options that the employer can choose between:

Option 1

The employer can choose to pay an employee 1.5 times what they would normally earn for the hours worked (sometimes called ‘time and a half’) and also pay their average daily wage.

The hours worked on the holiday do not count when calculating overtime hours worked for the week in which the holiday falls.

Option 2

The employer can choose to provide a future day off and pay of the employee’s average daily wage for that day.

This is sometimes called a day off in lieu of the holiday or a day lieu.

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If this option is chosen, the general holiday is treated like a standard workday and overtime is calculated as normal (if applicable).

For example, an employer may decide that an employee should work on Labour Day and give Boxing Day off as the future day off.

The employee earns their standard wage rate for hours worked on Labour Day. They also earn overtime (if applicable) on Labour Day since it is treated as a standard workday. On Boxing Day, they receive the day off and their average daily wage.

When employment end

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