P.E.I.'s paid sick leave rules have some businesses worried about costs, staffing

The chambers of commerce in Charlottetown and Summerside say P.E.I.'s new paid sick leave legislation that comes into effect Oct. 1 has some small and medium-sized businesses concerned about increased costs and scheduling difficulties.

A change to the province's Employment Standards Act, which takes effect Oct. 1, gives workers one day of paid sick leave after 12 months of employment at the same workplace, two paid days after 24 months, and three paid days after 36 months.

The change comes as a result of an Opposition bill, put forward by the Liberal Party in 2023.

Some businesses are concerned about how they'll pay employees who take sick days, and about how they'll cover off those shifts.

"They're concerned about the increased costs of having to pay employees who aren't showing up to work," said Greater Summerside Chamber of Commerce executive director Jessica Caseley.

"If somebody is calling in last-minute because they know they have that sick day available to them, then there's that inevitable race to the phone to try to get other staff members to come in. Small businesses might not have that roster to call."

Jennifer Caseley, executive director of the Greater Summerside Chamber of Commerce, says many small businesses may not have the roster of employees to cover for those who take sick days. (Rick Gibbs/CBC)

The Charlottetown Chamber of Commerce represents more than 1,150 businesses, while Summerside's membership includes more than 350.

A year ago, the Charlottetown chamber surveyed its members on the proposed paid sick day legislation. Of the 108 businesses that answered, 45 per cent already offered sick leave of three days or more.

They were evenly split on support for the legislation, with 42 per cent in favour, 39 per cent opposed and 18 per cent somewhat in favour.

Sixty-three per cent of businesses that responded said the sick leave would severely or somewhat affect their finances.

Province not providing financial assistance

The proposed legislation did not initially set out phased-in approach to paid sick leave based on length of employment, something the business groups suggested should be included.

In a statement to CBC News, a spokesperson for the Charlottetown chamber said the organization "really appreciated that the legislation was modified after we made our recommendations."

The Charlottetown chamber sent a letter to interim Liberal leader Hal Perry in October 2023 suggesting, among other proposals, that the province provide financial support to small and medium-sized businesses to help with the costs associated with paid sick days.

The province said in a statement to CBC News on Wednesday that it examined whether such supports would be appropriate.

"According to [Statistics] Canada, P.E.I. employees reported in 2022 that over 65% had access to paid sick leave coverage," the statement said.

"Given the large number of employers who already provide paid sick leave, it was determined that there was not a pressing need at this time to provide financial assistance to those who are not already providing paid sick leave."