Hours of work averaging agreement

A buyer meets averaging agreements in the employment records, where they change how overtime is worked out. Without a valid agreement the ordinary overtime rules apply, so the paperwork matters. See how to check employment records in due diligence.

Ontario

Under section 22(2), hours may be averaged over separate, non-overlapping, contiguous periods of two or more consecutive weeks to determine overtime pay entitlement if the employee has made an agreement with the employer and the averaging period does not exceed four weeks or the number of weeks in the agreement, whichever is lower. Under section 22(3) an agreement is not valid unless it has a start date and an expiry date, subject to subsections (3.1) and (3.2). Section 22(6) bars revoking it before it expires unless both agree.

British Columbia

Section 37 lets an employer and employee agree to average hours over a set period, despite the ordinary overtime sections but subject to section 37. The agreement is not valid unless it is in writing, signed by both before the start date, and sets out the weeks covered, the daily schedule, how many times it may be repeated and the start and expiry dates; the schedule must stay within the section’s hour limits, and the employee must receive a copy before the period begins. This entry covers Ontario and British Columbia only; check the rules where you are.