Leave Policy Template (Canada): Comprehensive Guide to Creating an Effective Leave Policy

Creating a clear, compliant and comprehensive leave policy is a cornerstone of responsible business ownership in Canada. It’s a foundational document that protects both your business and your employees, setting clear expectations for managing time off. 

Our Leave Policy is not just a document; it’s a strategic tool designed to help you navigate the complexities of federal and provincial labour laws, ensuring your business remains compliant while fostering a supportive and professional work environment. 

This template provides a robust, easy-to-use framework that can be customized to meet the unique needs of your organization, helping you build a workplace that attracts top talent while maintaining compliance.

What is in this leave policy template?

When you download our leave policy template, you’ll receive a fully customizable document that helps you outline the rules, procedures and entitlements for various types of employee leave. The template is designed to be easily adapted to your specific business needs while ensuring you meet the minimum requirements of Canadian labour laws.

It includes sections on:

• Bereavement leave: Rules for taking time off to grieve a family member’s passing.
• Personal/carer’s Leave: Provisions for employee illness, injury or family responsibilities.
• Compassionate leave: Guidelines for supporting employees with seriously ill family members.
• Maternity and parental Leave: Detailed sections on statutory and employer-provided leave for new parents.
• Community service leave: Information on leave for activities like jury duty.
• Voting leave: Ensures employees have the required time to vote in elections.

What is a leave policy?

A leave policy is a formal document that outlines an employer’s rules, procedures and employee entitlements for different types of leave. This includes common leaves like vacation and sick days, as well as statutory leaves such as maternity, parental and compassionate care leave. A comprehensive leave policy ensures consistency, transparency and compliance with federal and provincial labour laws.

Having a written policy is a best practice for any organization. It protects both the employer and employees by preventing misunderstandings, reducing the risk of legal disputes and setting clear expectations for requesting, approving and managing leave. It serves as a single source of truth, ensuring all employees are treated fairly and equitably.

Canada Labour Code and Provincial Employment Standards

In Canada, leave entitlements are governed by a dual system: the Canada Labour Code for federally regulated workplaces and provincial employment standards for most other employers. Federally regulated industries include banking, telecommunications and interprovincial transportation. The Canada Labour Code sets minimum entitlements for things like maternity, parental and sick leave for these specific sectors.

However, the majority of Canadian employers fall under provincial or territorial jurisdiction, and each province has its own employment standards legislation. This means entitlements can differ significantly depending on your location. 

For example, the number of paid sick days or vacation accrual rates can vary greatly between provinces. Employers must know which jurisdiction applies to them and draft their policies accordingly to avoid legal breaches.

Leave Type	Federal Standard (Canada Labour Code)	Example: Ontario (Employment Standards Act, 2000)
Paid Sick Leave	Up to 10 paid days per year	3 paid days after 2 weeks of employment
Vacation Leave	2 weeks per year after 1 year of service; 3 weeks after 5 years	2 weeks per year after 1 year of service; 3 weeks after 5 years
Maternity Leave	Up to 17 weeks	Up to 17 weeks

Why do employers need a written leave policy?

Having a well-documented leave policy offers numerous benefits beyond simply meeting legal requirements.

• Reduced legal risk: A clear, written policy helps you comply with the law and provides a solid defense against potential disputes or legal challenges from employees. It shows due diligence and consistency in how you manage leave requests.
• Improved communication: It serves as a clear reference for employees, so they understand their rights and the process for requesting time off. This reduces confusion and streamlines the administrative process.
• Easier administration: With a structured policy, HR and managers can handle leave requests more efficiently, ensuring consistency and fairness across the organization.
• Stronger employee trust and morale: When employees know their rights are protected and that the company is committed to fairness and transparency, it builds trust. A policy that goes beyond the legal minimums by offering enhanced benefits can also make your workplace more attractive to talent and increase employee loyalty.

Key types of leave under Canadian law

Canadian law provides various types of leave to support employees through different life events. Your policy should outline the details for each, including eligibility, notice requirements and whether the leave is paid or unpaid.

• Maternity and parental leave:
  • Maternity leave is for birthing parents and can be taken up to 17 weeks under the Canada Labour Code (or up to 17 weeks in Ontario) and is typically unpaid, but you can receive Employment Insurance (EI) benefits.
  • Parental leave is for any parent (birth or adoptive) and allows them to take an extended period of time to care for a new child. Parents can share this leave. The length of leave and corresponding EI benefits can be standard or extended.
  • Eligibility: Generally requires a certain period of employment.
  • Notice: Typically requires written notice of at least a few weeks.
  • Paid/unpaid: The leave itself is unpaid, but most employees are eligible for federal Employment Insurance (EI) benefits. For more information on EI, visit the official Government of Canada website.
• Sick leave 
  • Description: For personal illness or injury, or for medical appointments.
  • Eligibility: Varies by province. Federally regulated employees are entitled to 10 paid sick days per year. Many provinces have their own paid sick leave requirements.
  • Notice: As soon as possible, with medical documentation often required for longer absences.
  • Paid/Unpaid: Depends on provincial laws or company policy.
• Vacation and general holidays:
  • Description: Accrued paid time off for rest and relaxation.
  • Eligibility: Varies by length of service.
  • Paid/Unpaid: Generally paid.
• Other leaves:
  • Bereavement leave: Time off to grieve the death of a family member. It is often unpaid, but some employers offer a few paid days.
  • Compassionate care leave: For employees to provide care or support to a seriously ill family member at risk of death. This is an unpaid, job-protected leave.

How to create a leave policy template

Drafting a leave policy might seem daunting, but breaking it down into a few steps makes it much more manageable.

Identifying applicable legislation (federal vs provincial)

The most important first step is to determine which jurisdiction your employees fall under. This dictates the minimum legal requirements your policy must meet.

• Federally regulated: If your business is in industries like banking, telecommunications or interprovincial transport, you must follow the Canada Labour Code.
• Provincially regulated: If you operate in most other sectors (e.g. retail, manufacturing, hospitality), you’ll follow the employment standards of the province where your employees work.

Your policy must align with the correct framework to avoid legal breaches. If you’re unsure which jurisdiction applies to you, seeking advice from an HR professional is a smart move.

Structuring leave types and eligibility

Once you’ve identified the right legislation, you can structure your policy. Create clear categories for each type of leave and define the eligibility criteria for each.

• Leave categories: Group similar leaves together (e.g. statutory leaves, paid time off, etc.).
• Eligibility: Clearly state who is eligible for each leave, such as full-time, part-time or contract employees and if there are service requirements (e.g. length of employment).

Documenting notice and return procedures

A good policy outlines the practical steps employees must follow to take leave and return to work.

• Notice requirements: Specify how much advance notice is needed for a leave request and what form it should take (e.g. a written email to a manager).
• Return-to-work procedures: Outline the process for an employee’s return, including any required notice periods. Reiterate the employee’s right to reinstatement to their previous or a comparable position and the continuation of benefits and seniority while on leave.

Consider downloading our pre-built leave policy template to save time and ensure all these critical steps are covered, with clear, easy-to-follow sections.

Leave policy template for download 

Here’s a preview of the letter template you can download and customize based on your requirements:

What is a good maternity leave policy?

A strong maternity leave policy goes beyond the statutory minimums, demonstrating a commitment to supporting employees during a critical life stage. It should be clear, comprehensive, and compassionate.

Notice requirements and reassignment rights

For most Canadian jurisdictions, an employee needs to provide written notice of their leave, often with a medical certificate showing the expected due date. It’s also important to outline the employer’s obligation to protect a pregnant employee’s health and safety. This might include reassigning them to less strenuous duties if their current job poses a risk during pregnancy.

Duration and paid vs. unpaid components

A good policy clarifies that while maternity leave is typically unpaid, employees can apply for Employment Insurance (EI) maternity benefits. A great policy will also include details on whether the employer offers a top-up to these benefits. A top-up is a payment from the employer that supplements EI benefits, ensuring the employee receives a percentage of their regular salary (e.g., 90%).

What is a good parental leave policy?

A robust parental leave policy supports all parents, regardless of gender or whether they are birth or adoptive parents.

It should clearly explain the shared parental leave options and flexibility. Employers should use inclusive language to ensure the policy applies equally to all parents. Clarifying how benefits like vacation and seniority accrue during leave and ensuring a clear return-to-work guarantee are key to a supportive and fair policy.

For information on parental leave and benefits, you can visit the Government of Canada’s website.

What is a good sick leave policy?

A strong sick leave policy balances employee well-being with clear rules to prevent misuse.

Statutory minimum vs extended sick leave

The federal standard is 10 paid sick days per year for federally regulated employees. However, many provinces have different requirements. A good policy will meet or exceed these legal minimums. Offering more than the legal minimum can be a powerful recruitment and retention tool, showing employees that you prioritize their health.

Managing documentation requirements

Your policy should outline documentation requirements, such as a medical note for absences over a certain number of days. It should also address the privacy of an employee’s health information, explaining how and when it will be collected and who will have access to it.

Is there a leave policy in contract jobs?

Yes, leave entitlements do apply to contract or term employees in Canada. While some statutory leaves, like maternity leave, are protected regardless of the type of employment, other benefits, like paid vacation, may not be guaranteed unless they are explicitly written into the contract.

Leave entitlements for contract workers

The most important takeaway is that statutory minimums always apply, regardless of what the contract says. For example, a contract cannot override the right to parental leave.

Which one takes precedent, contract or legislation?

Statutory minimums always take precedent. If a contract offers less than the legal minimum for a specific leave, the law will override the contract. However, an employer can choose to provide more generous benefits in the contract, and those additional benefits would be legally binding.

Should there be a policy for every leave of absence?

Yes, it’s best to have a written policy for every type of leave available to your employees. This is crucial for preventing ambiguity, ensuring consistency, and reducing the risk of legal challenges. Your policy should cover not only major leaves like maternity and vacation but also less common ones like jury duty, bereavement leave and compassionate leave. Having all this information in a single, well-structured document ensures fairness and protects both the company and its employees.

Download our leave policy template

Crafting a comprehensive leave policy from scratch can be complex and time-consuming. Our downloadable template provides a solid foundation, allowing you to quickly and confidently create a policy that is compliant, clear and supportive. It’s the perfect starting point to protect your business and build a great workplace culture.

Download our template now and take the first step toward a more professional leave policy to help you manage compliance

The information in this template is current as at 1 August 2025, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The content is general information only, is provided in good faith to assist employers and their employees, and should not be relied on as professional advice. Some information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising directly or indirectly as a result of reliance on, use of or inability to use any information provided in this template. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this template.