PEI’s New Employment Standards Act (Bill 76): A Guide for Employers

Prince Edward Island’s new Employment Standards Act (Bill 76) is coming into force on June 30, 2026. Provincially regulated employers must understand that this isn’t an incidental amendment to the PEI ESA; it’s a full replacement of the previous Act. The employment law of the land has changed for both employers and employees.

This article provides highlights of key changes to PEI’s Employment Standards Act that come into effect on June 30, 2026.  

Provincially regulated employers should review the new Act and its regulations in full to ensure they understand their rights, responsibilities, and compliance requirements.  

Standard work week & overtime 

Previously, the standard work week was set at 48 hours. 

• The standard work week is now 44 hours (new rule excludes some industries)

PEI employers must review their existing averaging agreements and overtime policies to account for this change. 

Work scheduling & shift buffers  

Previously, no work scheduling requirements or rest buffers were mandated. 

• Written schedules must now be provided 7 days in advance, except in specific circumstances
• An employer must give at least 8 hours of rest between shifts, except in limited circumstances
• A split shift must be completed within 12 hours of the shift starting

Peninsula Canada's BrightHR software platform is built exactly for this. BrightHR lets you create, distribute, and archive employee schedules digitally, producing the written, time-stamped scheduling records that Bill 76 demands.

Sick & medical leaves  

Previously, employees could only take 3 unpaid days per year (after 3 months) and employers could request a sick note after 3 days of absence. Sick notes could only be issued by a doctor or nurse practitioner. There was no provision for a long-term medical leave. 

• Now employees will get 4 unpaid days (after 30 days of employment)
• Asking for sick notes is prohibited unless the absence is for 5 consecutive days or more

Sick notes can now come from other licensed health professionals if:  

• They can provide a diagnosis   
• The employee is their patient 
• The illness or injury is within their area of practice  
• These rules now apply to unionized employees too. 

The Act introduces a new 27- week unpaid medical leave. Employees can take up to 27 weeks of unpaid, job-protected leave if they cannot work for a long period due to:  

• Treatment of recovery from illness or injury  
• Organ or tissue donation  
• Gender-affirming care  
• Other approved medical procedures  

PEI employers will need a fully updated sick leave and attendance management policy that tracks paid and unpaid sick/medical leave entitlements separately per employee, per calendar year.  

Peninsula Canada’s HR consultancy department provides compliant policies and assists with 24/7 guidance to employers and your managers on how to respond to and manage statutory leave requests. If a complex return-to-work situation arises after extended medical leave, our HR advisors provide a step-by-step compliance roadmap.

Citizenship ceremony leave 

The Act introduces a new Citizenship Ceremony Leave.  

• After 90 days of employment, employees can now take 1 unpaid day off to attend their citizenship ceremony.  

Vacation accrual & termination  

Previously, an employee had to work 8 years with the same employer to earn 3 weeks of vacation. Notice of termination was required after 6 months of service. 

• Employees now qualify for 3 weeks of vacation, and 6% vacation pay after 5 years of service.  
• Notice of termination applies after 90 days of service. 

Tip policy posting

Previously, employers were only required to have a tip pooling policy.  

• Employers must post the tip pooling policy in the workplace for their employees to see.  

For businesses in hospitality and food service, this is one of the highest-risk new provisions in the Act—and one of the easiest to fix with the right documentation in place. Peninsula Canada drafts a tailored, PEI-compliant tip and gratuity policy for your workplace—one that covers pooling arrangements, payout timelines, surcharge handling, and posting requirements. 

Complaints and penalties  

Previously, employees and employers only had one year to make a complaint.  

• You now have 2 years to make a complaint to the Employment Standards Branch.  

Inspectors can now give fines (up to $25,000) to employers who break the rules. New tiered administrative penalties ($500 to $1,500) will also apply. 

PEI pay transparency new requirements

Pay history prohibition 

Under PEI pay transparency rules, employers are prohibited from seeking an applicant's pay history by any means, whether directly or through an agent.  

Mandatory pay disclosure in job postings 

Any employer that advertises a specific job opening to the public must include the expected pay or the range of expected pay in the posting.

This requirement does not apply to general “help wanted” signs, recruitment campaigns, or postings directed solely at existing employees. 

Need support navigating the new PEI Employment Standards? 

Peninsula can help. Our HR experts can help you audit and update your policies and employment contracts and be compliant with the new PEI Employment Standards. To learn more about how our services can help your business, call us today at +1(833)247-3652.