As long as the employee`s average weekly work time does not exceed 40 during the agreed average cycle and the employee never works more than 12 hours per day, there is no need to pay at the overtime rate. My example of a work week of 4 10-hour shifts would therefore not entail overtime pay obligations. ? one and a half hours for all hours worked of more than 40 hours per week on average over the defined average cycle. An employer and an employee may agree on an average working time of one, two, three or four weeks. Employees can agree to work up to 12 hours a day, on average no more than 40 hours a week, without being paid overtime. Another consideration is that funding agreements, at least in BC, require the employer to set weeks of pay and pay periods over a calendar week from Sunday to Saturday. In BC, overtime must be calculated, including as part of an average agreement, on the hours worked between midnight on Sunday morning and midnight on the Saturday evening concerned. For example, when an agreement of 4 weeks average starts on Sunday, January 1, 2017 in the morning, it will end on Saturday at midnight, January 28. In accordance with section 37 of the Act, you and your employees may agree on “average” overtime.
This often happens when employees have to work longer but fewer days, for example in four-day rotations of 10 hours. Any funding agreement must comply with certain rules in Section 37. The following is a non-exhaustive, representative list of the requirements set out in Section 37: there are many other nuances in the use of average overtime agreements and I strongly recommend seeking advance advice on the subject or, at the very least, reading the “Average Agreements” fact sheet on the B.C. Employment Standards Branch website. When used right, can funding agreements save employers a lot of money – why not use one of the few gifts for employers contained in the law? Example: a “manager” is excluded from Part 4 of the Act, in accordance with the Employment Standards Act s.32 (1). A “manager” and his employer cannot enter into an average agreement under point 37, since managers are totally excluded from Part 4 of the law. .