Averaging Agreement Sample

28 January 2022

Blog post

 the start and expiry dates of the contract term and an averaging agreement must be signed by the employer and employee before the start date. It must also include: An employer and an employee may agree on an average of the scheduled hours of work over one, two, three or four weeks. Employees can agree to work up to 12 hours a day, an average of no more than 40 hours a week, without being paid overtime.  the frequency with which the duration of the agreement can be repeated and workers working under average agreements where hours are averaged over a period of more than one week must either receive 32 consecutive hours not worked for each week of the average period or receive 1,5 times their normal wage for the working time worked, instead of receiving hours not worked. While the agreement can`t get employees to work more than 40 hours a week on average, that doesn`t mean it`s not allowed to work more than 40 hours a week. Employees may also be entitled to overtime rates based on the number of hours worked in a week. If employees work on average more than 40 hours per week during the period specified in the agreement, they are entitled to one and a half hours for more than 40 hours of work. When you calculate an employee`s average weekly hours, you count the first 12 hours the employee worked each day and exclude all hours that exceed the scheduled hours for which daily overtime rates were paid. Under an average agreement, employees who are required to work eight hours or more per day must receive up to 12 hours, or 1.5 times the employee`s regular salary, only for hours worked beyond scheduled hours. Again, this means that an employee who has to work up to 12 hours a day is not entitled to overtime pay under an average agreement. You and an employee can agree to calculate the employee`s hours of work on average over a period of one or more weeks to determine an employee`s entitlement to overtime.

The week(s) used for the average agreement must start on a Sunday. Such agreements must also: One of the few provisions of the Employment Standards Act B.C. that employers consider to be to their advantage is overtime (§ 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). 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. For a more detailed overview of the provisions of the Agreement on Means, see Section 37 of the ESA. For more information, see the following Sectoral Guidelines on Employment Standards: Fact Sheet on Averaging Agreements, Fact Sheet on Variances and Guidelines on the Interpretation of Average Agreements. Under an averaging agreement, an employee can be scheduled to work up to 12 hours a day without reaching overtime rates. An essential aspect of the provisions contained in the Law on the average overtime is that a written and signed agreement on the average overtime must be concluded before the start of the average overtime. (Employers who wish to retroactively establish the existence of an agreement on average hours can expect to receive little sympathy from Employment Standards.) However, the existence of an overtime placement agreement does not completely eliminate the obligation to pay overtime rates.

Employers must pay. Workers working under an average agreement where hours are averaged over a period of one week must have at least 32 consecutive hours of non-work per week.  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. The employee must receive a copy before the agreement comes into force. Averaging agreements do not need to be submitted to the Employment Standards Branch. There are many other nuances in the use of overtime placement agreements, and I strongly recommend seeking advice on this beforehand, or at least reading the “Average Agreements” fact sheet on the Employment Standards Branch B.C website. If the employer provides hours not worked, these hours can be scheduled at any time during the averaging period. This means that they can be scheduled one after the other every week or at any time during the average period.

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. An employee must receive a copy of the agreement before the date on which the period specified in the agreement begins. The employer must also keep a copy of the agreement for two years after the end of the employment relationship of the employee to whom the agreement applies. Section 37 of the Employment Standards Act allows employees and employers to agree on irregular work schedules that would otherwise increase overtime. As an employer in tourism, you may find that intermediary agreements offer a certain degree of flexibility and associated cost savings. An employee is entitled to a statutory holiday if he or she has been employed for 30 calendar days and has worked in the 30 days preceding the holiday under an average agreement. . . .