Ontario’s recently re-elected Liberal government has made good on one of its campaign promises by declaring a new statutory holiday in February, “Family Day.” Its stated purpose in proclaiming the new day off was to give employees more time with their families and to provide greater work/life balance.

The question arises, however, as to whether it is the government’s role to interfere with the employer-employee relationship in this way. Many employers—especially in an increasingly tight labour market—are already implementing measures to provide greater work/life balance so as to attract, retain and keep employees healthy. For example, a 2006 Hewitt survey indicated that 84% of employers provide flexible work hours, 60% allow working from home part-time, and 44% offer unpaid sabbaticals to some or all employees.

The new Ontario holiday puts employers in a difficult position—and not just those in this province. It’s clearly expensive to give employees an additional paid day off from a productivity perspective. Some employers are looking at alternate ways to deal with Ontario’s new Family Day.

More than the minimum

In a Hewitt “Rapid Response” survey conducted in October/November 2007, 265 Canadian employers answered questions about how they were planning to address the new Ontario holiday. Of these respondents, 41% operated in Ontario and at least one other province and had a national policy regarding paid holidays, 30% operated in Ontario and at least one other province and varied their holiday policy by province, and 8% operated in Ontario only. The other 21% did not conduct business in Ontario.

With Family Day, Ontario now has nine annual statutory holidays. The range in the other provinces is from a low of six in Nova Scotia and PEI to a high of 10 in Saskatchewan, Nunavut and the Northwest Territories. Family Day is already observed in Alberta and Saskatchewan; Manitoba, like Ontario, will introduce it in 2008(as Louis Riel Day).

Survey results indicate that the vast majority of employers already meet or exceed the number of legally required statutory holidays. Ninety-two percent offer 10 or more paid days off, excluding vacation. Where the number exceeds the statutory minimum, the extra days are “floaters” that the employer—and, in some cases, the employee—can use at its discretion to designate a holiday. Many employers use these days to close down shop for the entire week between Christmas and New Year’s, for example.

Add a day or not?

Employers’ plans for dealing with the new Ontario holiday fall into two distinct camps. Three-quarters of organizations that(a)do business in Ontario only or(b)operate in Ontario and at least one other province but whose holiday policy varies by province plan to provide an additional paid holiday.

However, for those that operate in Ontario and elsewhere and have a national holiday policy, only 12% plan to give an additional paid holiday. Half will eliminate another paid holiday. An additional 26% haven’t yet decided what to do.

Those organizations that will use one of their floater days to cover Family Day in Ontario must handle employee communication carefully. Ontario employees are expecting an additional day off. To tell them that they will now have to come in for one day during the last week of the year in order to have the mandated holiday in February is not going to sit well with some. Employers must craft a clearly-worded announcement to avoid being perceived as uncaring. That message should include the following:

• Details around the recently-proclaimed Family Day
• The company policy regarding statutory holidays
• The number of holidays currently provided and how any floater days are allocated
• The new holiday schedule, including Family Day
• Suggestions for how employees may ensure they have the time they want with friends and family over the holidays or during March Break(i.e., saving vacation days to use at these times.)

Emphasizing the positive

While it may be difficult for employers to avoid a negative reaction completely, a Family Day announcement does present an opportunity for an employer to emphasize what it’s already doing to help employees achieve work/life balance. Moreover, those with a national holiday policy can emphasize the fact the need to operate equitably across the country.

The enactment of Ontario’s new Family Day has business ramifications that were perhaps not completely thought through by the Liberal government. However, if employees are given the complete picture as to why an organization has decided not to add a new day off, any harmful impact on engagement can be avoided. That way, we can all enjoy a day off in February with our families.

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