Why are retail businesses required to close on July 2 this year?

The Retail Business Holidays Act (RBHA), administered by the Ministry of Government Services, requires most retailers to close on eight holidays each year, including Canada Day.

The federal Holidays Act establishes observance of Canada Day.  It states, when July 1 is a Sunday, July 2 is a legal holiday and shall be kept and observed as such throughout Canada under the name of ‘Canada Day’.”

This year, the RBHA closing requirement for Canada Day follows the federal legislation and is consistent with Ontario’s Employment Standards Act, which gives workers the right to refuse work or receive holiday pay if they choose to work on July 2.

2001 was the last time that July 1 fell on a Sunday.  In 2001, retailers were also required to close on July 2 in observance of Canada Day under the RBHA.

Enforcement of the Retail Business Holidays Act is the responsibility of local police services.

Can retailers open for business on July 1 this year?

Yes.  Under the federal Holidays Act, Canada Day is July 2 when July 1 is a Sunday; therefore, the Retail Business Holidays Act follows the federal legislation and does not prohibit retailers from opening for business on Sunday, July 1 this year.

There may be local municipal bylaws that limit Sunday openings and retailers should make themselves aware of any local requirements.

Why are retailers in Ontario required to close on July 2 this year when retailers in other provinces are forced to close on July 1 in observance of Canada Day?

Not all provinces have retail business closing requirements.  Of those that do require retailers to close on Canada Day, some specify the closing date in statute, follow the federal legislation where there is no specific date, or in some cases, choose July 1 based on their own statutory interpretation. 

Ontario follows the federal legislation that declares July 2 is the holiday when Canada Day falls on a Sunday.

New Brunswick, whose Days of Rest Act wording is similar to the RBHA, requires retailers to close in observance of Canada Day on July 2 when July 1 falls on a Sunday.  Quebec’s statute also requires retail businesses to close on July 2 this year. 

Manitoba and Newfoundland are the only provinces with Canada Day closing requirements that are requiring retailers to close on July 1 this year.

What is the penalty for an Ontario retailer who chooses to open for business on July 2 in defiance of the RBHA?

The minimum fine for a retailer convicted of opening in defiance of the RBHA is $500 for a first offence, $2,000 for a second offence, and $5,000 for a third or subsequent offence.  Retailers can be fined up to $50,000 or the total amount of gross sales for the holiday – whichever is greater.

Enforcement of RBHA closing requirements is the responsibility of local police services.