Leave Policy in Canada 2025: Complete Employer & Employee Guide

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Canada’s diverse economy, spanning technology, natural resources, healthcare, and finance, makes it an attractive destination for global employers. Hiring in Canada requires compliance with the Canada Labour Code and provincial employment standards, which strongly safeguard employees’ rights.

The leave policy in Canada governs annual leave, maternity and paternity benefits, parental entitlements, sick leave, public holidays, and other special leave categories. Employers must comply with both federal and provincial regulations to maintain fair working conditions and avoid penalties.

This guide provides a detailed overview of leave entitlements in Canada for 2025.

Table of Contents

Adoption Leave in Canada

Adoption leave in Canada supports adoptive parents in building family bonds.

Duration: Adoptive parents are entitled to up to 37 weeks of unpaid adoption leave, depending on provincial rules.

Special cases: Either parent may take adoption leave, but the total combined duration cannot exceed the maximum allowed.

Multiple adoptions: Entitlements remain the same per adoption event, regardless of the number of children adopted simultaneously.

Employers must grant adoption leave once employees provide adoption papers. During this time, parents may access Employment Insurance (EI) parental benefits for income support.

Earned Leave (Annual Paid Leave) in Canada

Annual paid vacation leave varies by province, but federal minimums under the Canada Labour Code apply for federally regulated employees.

  • After 1 year of service: 2 weeks of paid vacation.
  • After 5 years of service: 3 weeks of paid vacation.
  • After 10 years of service: 4 weeks of paid vacation.
  • Vacation pay is typically 4–6% of wages earned, depending on tenure.

Employers must ensure accurate Payroll processing to calculate vacation pay.

Suggested Read: Employer of Record Canada: A Comprehensive Guide

Maternity Leave in Canada

Maternity leave in Canada (for birth mothers) ensures income and job protection.

FeatureDetails
DurationUp to 17 weeks of unpaid maternity leave
PaymentIncome replacement through EI maternity benefits (15 weeks at 55% of average earnings, up to the maximum insurable amount)
ProtectionsEmployers cannot terminate employees during leave

Parental Leave in Canada

Parental leave is one of the most generous entitlements.

Type of LeaveDurationDetails
Standard parental leaveUp to 40 weeks total (max 35 weeks per parent)EI benefits at 55% of average earnings
Extended parental leaveUp to 69 weeks total (max 61 weeks per parent)EI benefits at 33% of average earnings

Parents may share leave, but each parent must take at least 5 weeks individually.

Paternity Leave in Canada

Canada does not have a separate statutory “paternity leave,” but fathers and partners can use parental leave entitlements.

  • Partners may claim standard or extended parental leave.
  • EI parental benefits apply, subject to eligibility.

Public Holidays in Canada

Canada recognizes 9 federal statutory holidays. Provinces and territories may grant additional days.

HolidayDate
New Year’s Day1 January
Good FridayMarch/April (movable)
Canada Day1 July
Labour Day1st Monday in September
National Day for Truth and Reconciliation30 September
Thanksgiving Day2nd Monday in October
Remembrance Day11 November
Christmas Day25 December
Boxing Day26 December

Employees are entitled to holiday pay if eligible under employment standards.

Sick Leave Policy in Canada

Sick leave is covered under both federal and provincial laws.

CategoryEntitlement
Federally regulated employeesUp to 10 days of paid medical leave per year (introduced in 2022)
Provincial rulesVary (e.g., Ontario: 3 unpaid days; British Columbia: 5 paid days)
EI sickness benefitsUp to 15 weeks of income replacement at 55% of average earnings

Employees must provide medical certificates when required.

Casual Leave in Canada

Canada does not formally define “casual leave,” but employees may take short-term time off for personal emergencies, depending on provincial standards. Examples include:

  • Bereavement leave (typically 3–5 days).
  • Personal emergency or family responsibility leave (varies by province).
  • Jury duty leave (unpaid, but job-protected).

Unpaid Leave in Canada

Employees may take unpaid leave in specific cases:

  • Compassionate care leave: Up to 28 weeks to care for a gravely ill family member.
  • Critical illness leave: Up to 37 weeks for a child, 17 weeks for an adult family member.
  • Reservist leave: For military duties.
  • Education leave: In certain provinces by agreement.

Other Special Leave Types in Canada

  • Family caregiver benefits under EI.
  • Maternity/parental top-ups provided by some employers.
  • Leave related to domestic violence in many provinces.

Suggested Read: Labour Laws in Canada: Everything Employers and Employees Need to Know in 2025

Digital Leave Management in Canada with Asanify AI

Managing leave in Canada is complex because of overlapping federal and provincial standards, EI benefits, and employer top-up policies. Manual systems often cause payroll disputes and compliance issues.

Asanify AI simplifies leave management in Canada by:

  • Providing real-time visibility of leave balances.
  • Offering Slack and mobile-based approvals for quick processing.
  • Automating Payroll processing for vacation pay, EI benefits, and employer contributions.
  • Generating audit-ready reports aligned with Canadian labor standards.
  • Supporting Global Contractor Management, enabling businesses to manage employees and contractors together in one system.

With Asanify, employers hiring in Canada can stay compliant with strict labor regulations while offering employees a seamless, transparent experience. This is especially valuable for startups and SMEs entering the Canadian market.

FAQs

How many vacation days do employees in Canada get?

Employees are entitled to 2–4 weeks of paid vacation depending on years of service.

How long is maternity leave in Canada?

Maternity leave lasts up to 17 weeks, with 15 weeks of EI benefits at 55% of salary.

What is the duration of parental leave in Canada?

Parents can share up to 40 weeks (standard) or 69 weeks (extended) of leave.

Are there paternity leave rights in Canada?

Canada has no separate paternity leave, but fathers can take parental leave.

How many public holidays are observed in Canada?

There are 9 federal statutory holidays, with provinces adding their own.

Are employees entitled to sick leave in Canada?

Yes. Federally regulated workers get 10 paid sick days; provinces set additional rules.

Do adoptive parents have the same rights as biological parents?

Yes. Adoptive parents are entitled to adoption leave and can access EI parental benefits.

Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant  or Labour Law  expert for specific guidance.