Holiday Changes for Ontario Retail Employers

Ontario retail employers have new rules to consider when planning for Family Day and Victoria Day.

As of April 2026, municipalities can no longer create or maintain by-laws requiring retail businesses to close on these two holidays. This gives many retailers more flexibility to decide whether to open or remain closed.

However, the change does not remove employee protections under Ontario's Employment Standards Act (ESA). For employers, understanding the difference is important when planning schedules and processing payroll.

Previously, retail holiday closing requirements could vary depending on provincial and municipal rules.

Under the new rules, municipal by-laws requiring retail establishments to close on Family Day or Victoria Day no longer have effect. Retail businesses can generally choose whether they want to open on these two holidays.

The change applies specifically to Family Day and Victoria Day. Other retail business holiday closing requirements may still apply.

While retailers now have more flexibility to open, Family Day and Victoria Day remain public holidays for employment standards purposes.

Employee rights under the ESA continue to apply, including public holiday pay and applicable premium pay. Many retail employees also continue to have the right to refuse work on a public holiday, subject to the provisions and exceptions of the ESA.

This means that deciding to open your business doesn't automatically mean every employee can be scheduled as they would on a regular working day.

A few simple steps can help businesses adjust to the changes:

• Review scheduling and staffing plans for Family Day and Victoria Day.
• Make sure payroll processes correctly calculate public holiday and applicable premium pay.
• Review your existing holiday policies.
• Communicate schedules and expectations clearly with employees.
• Make sure managers understand employee rights surrounding public holiday work.

Planning ahead can help prevent payroll errors and confusion for both employers and employees.

Payroll and HR requirements can become complicated when employment rules change.

At TandemBooks, we help Ontario businesses manage payroll, maintain accurate employee records, and stay organized as requirements evolve.

Our Payroll Management and HR Support services can help you review your processes and prepare for upcoming holiday payroll requirements.

Ontario's new retail holiday rules provide businesses with more flexibility on Family Day and Victoria Day, but employers still need to consider their responsibilities to employees.

Reviewing your scheduling, payroll, and HR procedures now can help ensure your business is prepared.

Have questions about your payroll or HR processes? Contact TandemBooks to learn how our Payroll Management and HR Support services can help.