Ontario Employers Need to Know: The Province Proposes Allowing Retail Stores to Open on Family Day and Victoria Day

The Government of Ontario recently announced a proposal that would allow (but not require) retail stores across the province to open on Family Day and Victoria Day. In turn, eligible retail employees would be permitted to work on those days and earn time‑and‑a‑half premium pay, in addition to their full public holiday pay entitlement under the Employment Standards Act, 2000 (the “ESA”).

While no effective date has been announced, the Province is aiming for these proposed changes to take effect before Victoria Day (May 18, 2026). Still, for retailers and other consumer-facing employers, it is a good moment to confirm that public holiday staffing practices and manager training align with obligations under the ESA.

What May Change (and What Will Not)

Ontario’s Retail Business Holidays Act (the “RBHA”) requires retail businesses to close on nine (9) specified holidays: New Year’s Day, Family Day, Good Friday, Easter Sunday, Victoria Day, Canada Day, Labour Day, Thanksgiving Day, and Christmas Day. Ontario’s proposed changes would allow retailers across the province to open on Family Day and Victoria Day, meaning that provincial and municipal authorities will continue to have authority to require retailers to close on other holidays under the RBHA.

While Family Day and Victoria Day would be removed from the application of the RBHA, the Province’s announcement emphasizes that the two holidays will remain “public holidays” under the ESA. As such, public holiday entitlements under the ESA for these two (2) holidays will remain in place, including public holiday pay, premium pay, and the right for many retail employees to refuse work on a public holiday.  In other words, even if retailers are permitted to open on Family Day and Victoria Day, employers may still need to approach staffing as a “volunteer-first” exercise and ensure managers understand how to respond appropriately when an employee declines to work on the holiday.

Why Employers Should Pay Attention

If implemented, the proposal could affect employers in two practical ways. First, consumer expectations may shift to assume that retailers will operate on Family Day and Victoria Day, especially for retailers with multiple Ontario locations. Second, it may increase the volume of public holiday scheduling decisions that must be made in a compliant manner. Ontario’s announcement expressly points to refusal rights for many retail employees and continued entitlement to public holiday pay and premium pay. That makes consistent manager messaging, reliable timekeeping, and accurate payroll administration key operational issues.

What Employers Can Do Now

Before any change takes effect, retailers should focus on readiness by:

• Monitoring legislative developments and the coming-into-force of these proposed changes;
• Refreshing manager guidance on public holiday scheduling, including how to handle refusals; and
• Confirming payroll and timekeeping processes are set up to administer public holiday pay and premium pay correctly and consistently.

Key Takeaway

Ontario’s proposal is framed as a move toward more consumer choice while maintaining worker protections. For employers, the compliance headline is simple: if retail opening expands to Family Day and Victoria Day, ESA public holiday entitlements still apply—and staffing and pay practices should be prepared accordingly.