Sample Averaging Agreement Ontario

One of the few provisions of the B.C. Employment Standards Act that employers consider to be to be to their advantage is overtime (section 37). Essentially, average overtime allows employers to schedule non-standard shifts without having to pay for them at the overtime rate (one and a half or two times). This is cheaper than paying standard overtime rates. Where applicable, an averaging agreement reduces overtime costs by signing that an employee has confirmed that he or she has waived paid or paid overtime by averaging his or her hours during a period when overtime is not calculated for hours normally subject to the overtime rules. As long as the employee`s average weekly working time does not exceed 40 beyond the agreed averaging cycle and the employee never works more than 12 hours per day, there is no obligation to pay overtime rates. My example of a work week with 4 shifts of 10 hours would therefore not entail any obligation to pay overtime. Find out the difference in the amount of overtime you would receive if you signed an averaging agreement or not. The standard working day (for the purposes of the law) lasts 8 hours and the standard working week is 40 hours. In the absence of an agreement on average overtime, employers must pay to exceed the standard day and week at overtime rates.

Companies whose employees work outside a normal working week benefit from an averaging agreement. An average deal can avoid costly overtime pay while giving employees more flexibility and a better work-life balance. The demand for greater flexibility can be triggered by changes in an employee`s personal situation that require more hours of work per day, which can trigger the payment of overtime pay in a “normal” employment contract. The overtime provisions are intended for a situation in which employees are regularly scheduled for an unusual day. An example would be a constant work week with 4 shifts lasting 10 hours. With an overtime placement agreement, employers can use this type of schedule without being required to pay overtime rates.  after one and a half hours for all hours worked, i.e. an average of 40 hours per week on the defined average cycle. Without an average agreement, you would have 22 hours of overtime.

 the start and expiration dates of the contract term and the correct application, mediation agreements can save employers a lot of money – why not use one of the few gifts for employers included in the law? If the employee works 40 hours in week 1 of the average period and 54 hours in week 2, the employee`s overtime can be calculated as follows: The employer and the employee may agree to amend an overtime placement agreement as long as the total number of hours provided for in the agreement remains the same. There are many other nuances in the use of overtime placement agreements, and I strongly recommend getting advice on this in advance, or at least reading the “Average Agreements” fact sheet on the Employment Standards Branch B.C website. I recently received a number of questions from employers about the availability and details of what is known as overtime placement. It`s been years since I last raised this topic, so I thought I`d get back to basics and talk about wages, overtime, and the average.  the frequency with which the duration of the agreement can be repeated and the hours can be averaged over cycles of 1, 2, 3 or 4 weeks. The number of hours may be different during the averaging cycle each day or week. However, the average number of hours per week covered by the agreement must not exceed 40. However, the existence of an overtime placement agreement does not completely eliminate the obligation to pay overtime rates.

Employers must pay. If overtime is permitted by law — in all jurisdictions except Alberta, New Brunswick, Newfoundland and Prince Edward Island — it must be done by written agreement. Each jurisdiction has different legal requirements and each situation is unique. It is therefore impossible to provide a model agreement that works for all places and situations. What we can do, however, is offer you a sample that you can use as a template to create your own average agreements with employees. This model originates in Ontario and applies to non-unionized workers to be used in an individual employment contract (as opposed to a collective agreement). Don`t forget to use it to […] In most jobs, the hours you work more than 44 hours a week are overtime. The following examples show the difference in the amount of overtime you get with or without an average agreement if: A key aspect of the overtime placement provisions in the law is that a written and signed overtime placement agreement must be entered into before the start of the overtime placement. (Employers who wish to retroactively establish the existence of an agreement on average hours can expect to receive little sympathy from Employment Standards.) You can use the Ministry of Labour`s Compensatory Leave and Average Calculator to see how much overtime you would get over 2, 3 or 4 weeks if you have an average agreement.

 the work plan for each working day covered by the agreement. However, the provisions on average overtime are not appropriate for working hours that are inconsistent or involve random overtime. Simply put, average overtime does not eliminate overtime rates of pay and does not protect employers who only sporadically require an employee to work longer days or weeks. While there is no mandatory format for an overtime agreement (and the agreement does not have to be submitted to Employment Standards), certain requirements must be met. The agreement must. If certain conditions are met, the average working time may be calculated at a maximum of four weeks for the purpose of calculating entitlement to overtime pay over two or more weeks (meaning that overtime pay is payable only if the average number of hours per week over the average period exceeds 44). Employers who wish to calculate an average of an employee`s working time for the purpose of determining overtime pay must obtain a written agreement on the employee`s average or, if the employee is represented by a union. For example, an employee who plans a work week with 4 shifts of 10 hours may be subject to an averaging agreement using a 2-week average cycle. During the 2-week average cycle, the employee can work an additional 10-hour shift each week for a total of 100 hours in the cycle.

The employer should pay this employee after an hour and a half for the 20 hours that exceed the average of 40 hours during the average cycle. If an employee`s work ends before they have taken paid leave, the employee must be paid for all unused bank time. This must be paid no later than seven days after the end of the employment relationship or the employee`s next pay day. Employers and employees have agreed in writing that the employee`s working time can be calculated on average over a two-week period for the purpose of determining overtime claims and that the employee can work up to 54 hours per work week (six hours above the general daily limit).  the cycle (i.e. 1, 2, 3 or 4 weeks) over which the hours are averaged, and once adjusted for your company, the overtime placement agreement must be used: an employee and an employer can agree in writing that the employee will receive paid leave instead of overtime pay. This is sometimes referred to as “accumulated time” or “free time instead.” If an employee has agreed to work overtime, he or she must receive 1 and a half hours of paid leave for each hour of overtime worked. Then multiply that by 4 to get the average number of overtime hours. There is a strict labor law that governs the implementation of averaging agreements.

If you make significant changes to the agreement, it is highly recommended that you obtain a legal review before implementing it. Next, subtract the 44 hours you have to work in a week to qualify for overtime. This will give you the “average” number of overtime hours per week. Note: Averaging periods cannot overlap and must follow one another without gaps or breaks. Some people may find it easier to calculate overtime this way: to find out your average overtime time in the 4 weeks, take the total number of hours you worked in the 4 weeks and divide it by 4.  twice the time for all time worked more than 12 hours in a day, and this article is for general information purposes only and is not intended to be legal advice.. .