Averaging agreements in BC: What you need to know

In British Columbia, averaging agreements are commonly used by employers to calculate overtime pay. Averaging agreements allow employers to average an employee’s hours of work over a specific period of time, usually one, two, or four weeks. This means that overtime pay is only paid if an employee works more hours than the average.

However, it’s important to note that averaging agreements must be approved by the Employment Standards Branch of the Ministry of Labour in order to be valid. This is to ensure that employees are not being unfairly disadvantaged by the agreement.

To be approved, an averaging agreement must meet certain criteria. The agreement must specify the time period over which the hours will be averaged, the maximum number of hours that can be worked in each day and week, and the number of hours that will be paid as straight time and as overtime. The agreement must also ensure that hours of work are not averaged over a period longer than four weeks.

Additionally, the agreement must provide employees with regular consecutive days off. Employees should not be required to work more than 12 consecutive days without a day off unless there is an emergency or other exceptional circumstances.

It’s also important to note that employees must be provided with a copy of the averaging agreement before it is put into effect. Employees have the right to refuse to enter into an averaging agreement, but employers cannot terminate or discipline employees for refusing to enter into an averaging agreement.

If an employer violates the terms of an averaging agreement or fails to obtain approval from the Employment Standards Branch, employees may be entitled to file a complaint and seek compensation for any unpaid overtime.

In summary, averaging agreements can be a useful tool for employers to calculate overtime pay, but they must be approved by the Ministry of Labour and meet certain criteria to be valid. Employers must also ensure that employees are not unfairly disadvantaged by the agreement and that they are providing regular consecutive days off. It’s important for employees to be aware of their rights and for employers to comply with the law to avoid potential legal and financial consequences.