Province’s new law for worker tips, sick leave takes effect

‘This legislation strikes the right balance for both workers and employers’

Province’s new law for worker tips, sick leave takes effect

Saskatchewan’s updated employment standards are now in force, introducing new protections for workers who earn tips, take sick leave or require time off after pregnancy loss or interpersonal violence.

Amendments to the employment standards provisions of The Saskatchewan Employment Act came into force on Jan. 1, 2026. The changes include:

  • allowing employers to use a calendar day rather than 24 consecutive hours for the purposes of work schedules and overtime provisions
  • prohibiting employers from withholding tips from their employees
  • increasing the threshold when employers are required to notify employees, the minister and the union of a group termination from 10 employees to 25 employees
  • limiting when employers can request sick notes
  • providing the director of employment standards with the authority to order reinstatement and compensation for lost wages in cases of discriminatory action by an employer
  • extending various leave provisions.

"Having effective employment legislation in place is critical for Saskatchewan's strong economy and secure future," Deputy Premier and Labour Relations and Workplace Safety Minister Jim Reiter previously said. "This legislation strikes the right balance for both workers and employers."

Employment Standards Regulations

Along with these changes, on Dec. 24, 2025, The Employment Standards Regulations, 2025 (ESR) were published, with changes also coming into effect Jan. 1, 2026.

The ESR will repeal and replace The Conditions of Employment Regulations, The Minimum Wage Regulations, 2014, and the current version of The Employment Standards Regulations, according to Amy Gibson and Shane Buchanan, general labour and employment practice lawyers with MLT Aikins.

Key changes, according to the legal experts, include:

Area / Topic

Summary of Change

Definition of gratuity

As of Jan. 1, 2026, employers are prohibited from withholding or deducting gratuities from employees’ wages; “gratuity” includes voluntary payments from customers to employees (directly or via employer) and service charges intended or assumed to be kept or shared with employees.

Gratuity pooling

Employers may set up gratuity pooling arrangements to collect and redistribute tips among some or all employees, but employers, directors and shareholders generally cannot share in pooled tips, except where they substantially perform the same work as employees in the pool or are in an industry where such sharing is common.

Modified work arrangements

Modified work arrangements are now allowed for employees who work on average less than 30 hours per week; previously, these part‑time employees were excluded from participating in such arrangements.

Exemption from overtime

The overtime exemption for professional practitioners has been narrowed so that it only applies to professionals who must be licensed or registered under an Act and who can provide professional services without the authorisation or supervision of another professional.

Two consecutive days of rest (retail)

The requirement for certain retail workers to receive two consecutive days of rest has been removed.

Bereavement leave entitlement

Employees may now take bereavement leave for any person they consider to be a close relative, with no further definition provided, in addition to existing entitlements for immediate family deaths and pregnancy loss as set out in the SEA amendments.

Substituting public holidays

Employers can substitute another day for any public holiday (except Remembrance Day) if agreed with an employee or majority of employees, provided the substitute day occurs within four weeks of the holiday; prior approval from the Director of Employment Standards is no longer required.

Group termination notice threshold

The threshold for triggering written notice of a group termination has increased from 10 employees to 25 or more employees.

Definition of student learner

The definition now includes individuals in training or work experience through a minister‑recognised program and explicitly excludes interns; interns are treated as employees, while student learners receive the same protections under the SEA and ESR as other employees.

Wage assessment deposit amount

The maximum deposit required when employers or corporate directors dispute a wage assessment increases from $500 to $1,000.

Service on the Director of Employment Standards

New rules set out updated methods and requirements for serving documents on the Director (including email and fax) and clarify when service is deemed effective.

Service by the Director of Employment Standards

If usual service methods fail, the Director may serve documents or notices by publishing them in a newspaper or on a website.

In late 2024, the government of Saskatchewan introduced amendments to the act aimed at reducing administrative burdens for employers while bolstering employee rights. In May this year, the government passed further amendments, extending leave entitlements and broadening access to protections for more workers.

In May 2025, the Retail Council of Canada (RCC) welcomed the announced changes to The Saskatchewan Employment Act.

“Following years of advocacy, RCC celebrated the passing of the Saskatchewan Employment Amendment Act that results in a number of positive changes for members in the province,” it said.

“The province has finally agreed to use a calendar day rather than 24 consecutive hours for the purposes of work schedules, permitting greater flexibility and the ability to avoid needless overtime. Additionally, the requirement of providing two consecutive days off every week specifically targeting retail employees is being eliminated. Other changes include rules on when sick notes can be required, and alignment on special leaves with the federal government and many other provinces.”

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