Averaging Agreements in Alberta: What You Need to Know

Averaging agreements are a valuable tool for employers and employees in Alberta. These agreements allow employees to work longer hours over a certain period of time, while still receiving their regular pay. This can be helpful for businesses that have busy seasons or fluctuating workloads.

Here are some key points to keep in mind when it comes to averaging agreements in Alberta.

What is an Averaging Agreement?

An averaging agreement is a legal agreement between an employer and an employee that allows the employee`s hours of work to be averaged over a certain period of time. This means that the employee can work longer hours during busy periods and then take time off during slower periods, all while still receiving their regular pay.

Averaging agreements are subject to certain rules and regulations in Alberta, including the maximum number of hours that can be worked in a day and the minimum amount of rest time that must be given between shifts.

Who Can Enter into an Averaging Agreement?

Averaging agreements can be entered into between an employer and an employee, provided that the employee is covered under the Alberta Employment Standards Code. This includes most employees in Alberta, although there are some exceptions such as farm and ranch workers.

It is important to note that averaging agreements cannot be used to avoid paying overtime pay. If an employee works more than their regular hours of work in a day or week, they must be paid overtime pay at a rate of 1.5 times their regular rate of pay.

How Long Can an Averaging Agreement Last?

Averaging agreements in Alberta can last up to 12 months. During this time, an employee`s hours of work can be averaged over a period of up to four weeks.

Once an averaging agreement has expired, a new agreement can be put in place provided that the employee agrees to it.

What Should be Included in an Averaging Agreement?

An averaging agreement should clearly outline the terms and conditions of the agreement, including the duration of the agreement, the period over which hours will be averaged, and the maximum number of hours that can be worked in a day or week.

The agreement should also include information on how overtime pay will be calculated and any terms related to time off or vacation entitlements.

Final Thoughts

Averaging agreements can be a useful tool for employers and employees in Alberta, but they must be used within the rules and regulations set out by the Employment Standards Code.

If you are considering entering into an averaging agreement, it is important to understand your rights and responsibilities under the Code. You may also want to consult with a legal professional to ensure that the agreement is fair and legally binding.