• Fri. May 24th, 2024

Alberta Employment Standards Code Averaging Agreement


Jun 7, 2022

The Alberta Employment Standards Code has specific regulations in place to protect the rights of employees, including the use of averaging agreements. Averaging agreements are a method by which employers can average an employee`s hours of work over a specified period, usually one to four weeks, for the purposes of calculating their overtime entitlement.

An averaging agreement is a written agreement between an employer and an employee that allows the employer to average an employee`s hours of work over a specified period. The agreement must be signed by both the employer and the employee, and it must be approved by the Director of Employment Standards. The agreement must also specify the period over which the hours of work will be averaged, and the number of hours of work that will be considered as regular hours of work for the purpose of calculating overtime pay.

The purpose of an averaging agreement is to provide employers with flexibility in scheduling and to allow employees to work longer hours in one week and shorter hours in another week, without triggering overtime pay. However, it is important to note that an averaging agreement does not eliminate an employer`s obligation to pay overtime when an employee works more than their regular hours of work in a week or when they work on a statutory holiday.

There are specific conditions that must be met in order for an averaging agreement to be valid. Firstly, the agreement must not contravene any other provisions of the Employment Standards Code. Secondly, the agreement must not result in an employee working more than an average of 44 hours per week over the period specified in the agreement. Lastly, the employee must receive at least one day off per week or two days off per two weeks.

It is important for both employers and employees to understand the regulations surrounding averaging agreements in Alberta. Employers must ensure that their agreements comply with the Employment Standards Code, while employees must be aware of their rights, including the right to refuse to enter into an averaging agreement. Additionally, employees must ensure that they are receiving appropriate overtime pay when they work more than their regular hours of work.

In conclusion, the use of averaging agreements in Alberta can provide benefits to both employers and employees, but it is important to ensure that they are being used in compliance with the Employment Standards Code. Employers must be mindful of their obligations to their employees, and employees must be aware of their rights. By understanding the regulations surrounding averaging agreements, both employers and employees can work together to create a fair and productive work environment.


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