Understanding Yukon’s Employment Standards Act

Every province in Canada has a set of employment legislations that employers are governed by. In Yukon, the employment legislation includes four main legal statutes: the Employment Standards Act (ESA), the Safety Act, Occupational Health and Safety Regulations, and the Workers’ Compensation Act. Below we have provided an overview of the minimum entitlements that all provincially regulated employees in the province must receive.

Minimum Wage

The minimum wage is the lowest rate an employer can pay their employees. As of April 1, 2024, the minimum wage in the Canadian Yukon is $17.59 per hour. The minimum wage increases every April 1. The amount of annual increase is tied to inflation, calculated using the Consumer Price Index (CPI) in the territory. Territorially regulated employers must ensure that their employees receive at least the minimum wage.

General or Statutory Holidays in Yukon

Yukon has 11 statutory or general holidays:

• New Year’s Day
• Good Friday
• Victoria Day
• National Indigenous Peoples Day
• Canada Day
• Discovery Day
• Labour Day
• National Day for Truth and Reconciliation
• Thanksgiving Day
• Remembrance Day
• Christmas Day

ESA eligibility rules for General Holiday pay state that employees are not entitled to this pay if the general holiday occurs within the first 30 calendar days of their employment, if they are absent when required to work on the general holiday, if the general holiday falls on a day when they have already been absent for 14 consecutive days immediately before the holiday due to a statutory leave of absence, or if they are absent without authorization on the day before and the day after the general holiday.

Eligible salaried employees who do not work on the Public Holiday are entitled to General Holiday Pay so that they do not see their weekly or monthly wages reduced. The same applies for eligible employees who are compensated on a daily or hourly basis, they must be paid at least the equivalent of wages they would have earned at their regular rate of wages.

According to the ESA, if an employee has to work on a general holiday, they will receive their general holiday pay plus either be paid at least the overtime rate for all hours worked that day or be paid their regular rate for hours worked and get a day off. This day off can be added to their annual vacation or taken at a time that suits both the employer and the employee.

Overtime in Yukon

Territorially regulated employees are entitled to overtime pay if they work over 8-hours a day or 40-hours in one week. Overtime pay, like in most Canadian jurisdictions, is set at 1.5 times their regular wage pay rate. If the employee is paid on a basis other than time worked, the overtime rate is 1.5 times the minimum wage.

Employees may be compensated for overtime hours by receiving 1.5 hours of paid time off work for each hour of overtime worked instead of overtime pay if the employee and employer agree to this arrangement (i.e., time off in lieu - TOIL). Employers must make sure the paid time off is taken within 12 months of the work week in which the overtime was earned.

Employees in the Canadian Yukon are entitled to at least two days of full rest in a week of work; wherever practical, one of these days off must be on a Sunday. They are also entitled to a 30-minute break after having worked for five hours in a workday of ten hours or less.

The ESA allows employers in the Canadian Yukon to implement an overtime averaging agreement. The following requirements apply: in order to implement an averaging agreement over a specific period of two or more weeks, employers must first apply for a permit to the Director of Employment Standards. The employer’s decision must also have the approval of the majority of affected employees (50+1%).

Vacation Time and Pay

In the Canadian Yukon, employees are eligible for paid vacation and vacation time off once they have been employed for at least 14 days. Employers must schedule vacation for their employees no later than ten months following completion of their year of employment. The ESA does not require employees to provide a minimum amount of notice for vacation time-off requests.

Territorially regulated employees that have completed between their one year of employment are entitled to at least two weeks of paid vacation time. The ESA does not provide for additional vacation time entitlement for long service.

Employees must receive vacation pay calculated as four percent of their earnings during their year of employment. This includes all remunerations for work performed except gratuities, money paid at the discretion of the employer that is not related to hours of work, production, or efficiency. Regarding how vacation pay should be paid, the ESA states that it must be paid at least one day before the employee begins their vacation.

The ESA permits a written agreement between the employer and the employee where the employee waives their vacation time entitlement. In such scenario, the employee is still entitled to vacation pay, which must be paid out within 10 months after they become entitled to that vacation. Foregoing vacation pay is prohibited.

Job-Protected Leaves of Absence

Territorially regulated employees are entitled to 10 types of statutory leaves:

• Maternity Leave
• Parental Leave
• Sick Leave
• Compassionate Leave
• Bereavement Leave
• Leave related to Critical Illness of a Child
• Leave related to Critical Illness of an Adult
• Child Death and Disappearance Leave
• Domestic or Sexual Assault Leave
• Reservist Leave

Employers in the Canadian Yukon must review the ESA to determine the eligibility criteria for any of these leaves of absence. Employers must also note that most of the statutory leaves listed above are considered unpaid leave, except for Domestic or Sexual Assault leave, which is partially paid (5 paid days after 3 months of service, otherwise, an employee can take up to 15 weeks unpaid).

Temporary Layoff

The ESA permits employers to put an employee under a temporary layoff. It is best practice for employment contracts to provide the employer’s right to implement a temporary layoff. A temporary layoff is an interruption of work (not employment) for a period not exceeding 13 weeks within any period of 20 consecutive weeks. If an employer wants to implement a temporary layoff that exceeds the statutory maximums, they can apply for an extension of the statutory period limit to the Director of Employment Standards.

If an employer fails to recall an employee on temporary layoff beyond the statutory maximum period, that employee is considered to have been terminated at the start of the temporary layoff. The employer must then pay the employee the amount required by the termination notice provisions.

Termination of Employment

The ESA allows employers to terminate employees without notice when they have been employed for less than 6 months. Here is an outline of the minimum notice period employees are entitled to based on their length of service.

According to the ESA, territorially regulated employees must receive payment of owed wages within seven days after termination. Owed vacation pay is to be paid ‘without delay,’ but the employer has seven days from the date of termination. This is in addition to the four percent of wages (vacation pay) accrued by the employee during the completed portion of their year of employment.

Termination Notice or Pay in lieu does not apply to employees in the construction industry, or employees hired on a seasonal or intermittent basis that lasts less than six months in a year.

Mandatory Workplace Policies

According to the Occupational Health and Safety (OHS) Regulations, employers in Yukon must have the following workplace policies in place:

• General Occupational Health and Safety Policy
• Workplace Hazards and how to identify them
• Workplace Violence and Harassment Prevention Policy
• Emergency Response Plan
• Incident Investigation and Reporting procedure

Do you need help understanding Yukon’s Employment Standard’s Act?

Our advisors can answer any questions you may have about the ESA as well as develop policies to help protect your business from costly claims. Our experts can also advise you on any other HR or health and safety questions you may have.

Contact us today at 1(833) 247-3652 to find out how your business can benefit from our services.