Saskatchewan Employment Law Overhaul: What Employers Need to Know About Bill 5

On May 13, 2025, Saskatchewan’s Legislature granted Royal Assent to Bill 5, the Saskatchewan Employment Amendment Act, 2024 (the “Act”). This landmark legislation introduces a wide array of changes to the Saskatchewan Employment Act (SEA), significantly impacting hours of work, employee tip management, group terminations, statutory leave entitlements, and employer liabilities.  

When do these changes come into effect? 

While most of these changes will come into force on proclamation later in the 2025-26 fiscal year (exact dates to be announced), Saskatchewan employers must act now to review, assess, and update their internal policies, HR training materials, and documentation. Proactive preparation is key to aligning with these new requirements and safeguarding businesses against increased enforcement risks.  

New flexibility: Hours of work, breaks, and rest periods 

The amendments to the SEA introduce considerable flexibility in how Saskatchewan employers can schedule work and manage rest periods. A major change is the definition of a "day," which now allows employers to choose between using a standard calendar day (midnight to midnight) or a continuous 24-hour period for scheduling and overtime calculations. This choice must be clearly communicated to employees. 

Furthermore, rest period requirements under Section 2-13 now mandate an eight-hour rest within any 24-hour period, rather than within a "day." The previous special requirement for retail employees to receive two consecutive days off has been eliminated, standardizing the one-day-off-in-seven rule across all sectors.  

For meal breaks, employers can now negotiate variations with unions without needing director approval, or they can apply for variations with non-unionized employees if they obtain written consent. Finally, Section 2-18 removes previous restrictions, allowing part-time employees to participate in modified work arrangements, meaning overtime for them can be calculated after their scheduled hours rather than automatically after eight hours in a day. 

Strategic advantage for employers

 These changes offer significant opportunities. The flexible "day" definition allows for more creative and efficient shift scheduling, especially for businesses with 24/7 operations or shifts that cross midnight. Implementing modified work arrangements for part-time staff can lead to better scheduling flexibility and potentially reduced overtime costs. The standardized day-off rule simplifies scheduling for businesses operating in multiple sectors. 

How can employers stay compliant with these changes? 

Saskatchewan employers will need to update their company handbooks and policies. As well, adjust time tracking and payroll systems and train managers on these new changes to employment standards.  

Saskatchewan employers must be proactive in ensuring compliance with the amendments to the Saskatchewan Employment Act. Our HR experts can review, assess, and update your policies, HR training materials, and documentation, and offer guidance on any other HR matter. To learn more about how our services can help your business, call us today at (1) 833 247-3652.  

If you have questions or need support navigating these scheduling complexities, Peninsula can help. Our HR experts can provide tailored guidance to optimize your workforce management. 

Managing employee earnings: Wages, deductions, and tips 

The Act brings notable changes to how employers manage employee compensation. Cash is now explicitly confirmed as an acceptable method for wage payment. Section 2-36 expands the list of permissible wage deductions to include wage advances, costs for voluntary training (not required for the job), and housing or moving allowances, provided the employee gives clear, written consent  for these specific deductions. 

A major introduction is Section 2-36.1, which prohibits employers from withholding or deducting tips from employees, except where required by law (e.g., court order) or to facilitate legitimate tip pooling arrangements agreed upon by employees. Any tips improperly withheld are now classified as wages owing. 

The explicit approval of cash payments offers flexibility, particularly for employers with temporary foreign workers or in industries where immediate payment is common practice (though meticulous record-keeping is essential). Expanded deduction options can streamline cost recovery for certain employer-provided benefits, if managed with proper consent. For service industry businesses, the new tip regulations, while requiring transparent systems, also provide a framework for establishing formalized, compliant tip pooling arrangements, which can reduce disputes. 

How should employers incorporate these changes? 
 

Provincially regulated employers must review payroll processes and implement strong receipt and cash handling procedures.   

You'll also need to develop clear written agreements for any new permissible deductions, and overhaul tip practices and policies to align with new rules. Peninsula can assist in drafting these crucial policies.

Termination of employment: New Rules for Saskatchewan Employers 

The amendments also bring important clarifications and changes to termination processes. Section 2-61 now explicitly states that employers are not required to include vacation pay when calculating pay-in-lieu of notice during terminations. This simplifies the calculation and may reduce overall termination costs. 

More significantly, the threshold for group termination notice requirements under Section 2-62 has been  increased from 10 to 25 employees being terminated within any four-week period. This substantially reduces the administrative burden and reporting obligations for smaller-scale workforce reductions. 

The clarification on vacation pay provides certainty in termination calculations. The increased group termination threshold offers more flexibility for businesses undergoing smaller restructures, reducing the need for formal government notification in those instances. However, this also means larger employers must be even more diligent in tracking cumulative terminations to ensure compliance when the 25-employee threshold is met. 

What are employers required to do? 

Employers must update their termination documents to reflect the vacation pay clarification and the new 25-employee trigger. You should also review workforce planning strategies to leverage the new flexibility for smaller reductions while ensuring readiness for notification requirements during larger restructuring events. Our legal experts can help ensure all your termination paperwork and procedures are up to date.  

Sick leave corroboration: Understanding employer rights 

The amendments to SEA (Section 2-40) now  restrict an employer's right to request a medical certificate  to absences exceeding  five (5) consecutive working days, or for two separate absences of two (2) or more days within a 12-month period. 

Furthermore, aligning with Federal Employment Insurance (EI) sickness benefits, the amendments extend the maximum duration of unpaid long-term illness and injury leave from 12 weeks to 27 weeks. 

While limiting note requests for shorter absences, these changes encourage a trust-based approach for minor illnesses, potentially reducing administrative burdens for both employers and employees, and easing pressure on the healthcare system. The extended leave aligns with federal benefits, simplifying coordination for employees needing longer recovery periods. 

Employers should: 

Update their absence management policies to reflect these new thresholds. Employers should also revise their leave forms and handbooks. Peninsula can help ensure your documentation is compliant. 

Expanded statutory leaves: Supporting employees through life events 

The Act significantly expands several statutory leave entitlements, offering employees greater flexibility and support.  

Maternity leave eligibility after a pregnancy loss  has been extended to include losses occurring up to 20 weeks before the estimated birth date (up from 13 weeks).  

Bereavement leave  provisions now allow employees to take their five-day entitlement within six months of a death, rather than only one week before or after the funeral, accommodating diverse needs. Eligibility for bereavement leave is also expanded to include the death of individuals an employee considers "like family" and for pregnancy losses experienced by the employee or their immediate family members. 

Additionally, a  new 16-week unpaid interpersonal violence leave has been introduced. This supplements the existing 10-day leave (of which five days are paid), providing crucial extended protection and support for employees dealing with the impacts of interpersonal violence. 

These expanded leaves demonstrate a commitment to employee well-being and can enhance an employer's reputation as providing a supportive workplace. While requiring adjustments, they can foster loyalty and reduce stress for employees facing difficult personal circumstances. 

How can employers stay compliant with the new statutory leaves? 

You should conduct a thorough review of your company leave policies and employee handbook to align with these new provisions. You'll also need to update leave request forms and implement workforce planning strategies to address potential staffing challenges from longer absences. 

Do you need assistance updating your documentation to be compliant with SEA amendments? 

Saskatchewan employers must be proactive in ensuring compliance with the amendments to the Saskatchewan Employment Act. Our HR experts can review, assess, and update your policies, HR training materials, and documentation, and offer guidance on any other HR matter. To learn more about how our services can help your business, call us today at (1) 833 247-3652.