Holiday Pay, Scheduling, and Time Off - What Employers Need to Know

Holiday scheduling and pay remain one of the most misunderstood and more frequently mishandled areas of Alberta Employment Standards, The confusion tends to spike around peak vacation periods and year-end holidays, when operational demands, employee expectations and compliance requirements all collide. 

The recent holiday season served as a reminder of just how misunderstood statutory holiday rules can be, especially around days like Boxing Day. Many employers are surprised to learn that Boxing Day is not a statutory holiday in Alberta. 

Knowing what obligations apply and where flexibility exists can prevent payroll mistakes, employee dissatisfaction and compliance issues. Let’s break down what Alberta employers need to know heading into the year ahead. 

General (Statutory) Holidays in Alberta

Alberta recognizes nine general (statutory) holidays under Employment Standards, including: 

• New Year’s Day 

• Family Day 

• Good Friday 

• Victoria Day 

• Canada Day 

• Labour Day 

• Thanksgiving Day 

• Remembrance Day 

• Christmas Day 

While days like Boxing Day, Easter Monday, and Heritage Day are commonly observed by some employers, they are not statutory holidays unless the employer chooses to recognize them. 

This distinction matters. If a day is not a general holiday under Employment Standards, there is no legal requirement to provide holiday pay or time off. This is of course unless your company has a policy, employment agreement or collective agreement that says otherwise. 

Holiday Pay Entitlements: What Eligible Employees Receive

If an employee is eligible for statutory holiday pay, their entitlement depends on whether they work the holiday. If the employee does not work on the general holiday, they are entitled to their average daily wage. If the employee does work on the general holiday, they are entitled to holiday pay plus either 1.5 times their regular wage for hours worked or a day off in lieu with pay, taken at a later date. 

Importantly, holiday pay applies whether the business closes or not, as long as the employee meets eligibility requirements. 

Determining Eligibility: It’s More Than Just the Calendar

Before assuming an employee is entitled to holiday pay, employers must first determine whether the general holiday falls on a regular workday for that employee. For employees with regular schedules, if Christmas falls on a Thursday and the employee normally works Thursdays, it is considered a regular workday. 

For employees with variable or casual schedules, Alberta uses the “5 to 9 rule”. This means employers must look at whether the employee has worked at least five of the last nine same weekdays on which the holiday falls. If they have, the holiday is treated as a regular workday for that employee and statutory holiday pay applies. In addition, to remain eligible, the employee must have worked at least 30 workdays in the previous 12 months, and must work their scheduled shift immediately before and after the holiday, unless there is a valid, protected reason for the absence. Missing or misapplying any part of this eligibility assessment can easily lead to incorrect pay calculations, or worse, non-compliance with Employment Standards. 

Scheduling Around Holidays: What Employers Should Avoid

Employers are allowed to schedule employees to work on general holidays if the workplace normally operates. However, scheduling decisions must be made carefully. A key compliance risk arises when schedules are artificially changed before or after a holiday to avoid triggering holiday pay eligibility. Examples include: 

• Removing an employee from the schedule the week of a holiday without operational justification. 

• Changing “regular” workdays shortly before a stat holiday.

• Reducing hours solely to avoid average daily wage calculations. 

Employment Standards takes a firm stance on this. Scheduling practices that appear designed to deny holiday pay can expose employers to complaints, audits, and back-pay requirements. 

The safest approach? Keep scheduling consistent, document legitimate operational reasons for changes, and apply rules evenly across your workforce. 

Part-Time and Casual Employees Are Still Covered

One of the most common and costly misconceptions is that part-time or casual employees are exempt from statutory holiday rules. They are not. Employee Standards apply regardless of employment status. This means part-time employees may still qualify for holiday pay, and casual or irregular workers may still meet eligibility thresholds. It’s also important to note that “They don’t usually work holidays” is not a legal exemption. In fact, many holiday pay disputes stem from assumptions about casual workers that don’t align with legislation. Employers should always assess eligibility using the same criteria, not job title or hours alone. 

Policy, Practice and Communication Matter 

Holiday pay issues often escalate not because of bad intent, but because of unclear policies or inconsistent application. Employers can reduce risk by clearly outlining statutory holidays in written policies, defining how optional holidays (like Boxing Day) are handled, training supervisors on scheduling rules and eligibility criteria, and communicating expectations well in advance of peak holiday periods. 

Consistency is key. When policies match practice (and practice aligns with legislation) employers protect both their people and their business. 

Where to Find Official Guidance

Employment Standards rules can change, and nuances matter. Employers should always rely on up-to-date, official resources when making pay or scheduling decisions. For full details on Alberta’s Employment Standards rules, including holiday pay calculations and eligibility, visit Employment standards | Alberta.ca. 

Final Thoughts

Holiday pay and scheduling don’t have to be complicated, but they do require attention. Misunderstanding statutory holidays, overlooking casual employee eligibility, or making last-minute scheduling changes can quickly turn a busy season into a compliance headache. 

At HR Advantage, we help employers navigate these grey areas with practical, people-first guidance that works in the real work, especially for hands-on, shift-based teams. If you’re unsure how your current holiday practices stack up, now is the time to review them before issues arise. 

Small details matter. And when it comes to holiday pay, getting it right builds trust long after the season ends.