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Averaging-Explain Like I Am 5

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The way it works for me (engineering) is they take the hours you would work over a full calendar year of 52 weeks. 52 weeks x 40 hours = 2080 hours. Then subtract your vacation allowance (80 hours?) and you have how many hours you have to work for the year. They can make you work it all in the first month if they want, without paying $1 of overtime, as long you are given the rest of the year off with your regular pay.

It is really easy for companies to take advantage of you and the stories I have heard are endless.

At the end of the year, when our entire engineering staff submits their final hours reports, the company realizes they have a bill on the table for tens of thousands in overtime. WE CAN'T PAY THAT! they say... YOU SHOULD HAVE MANAGED YOUR HOURS BETTER! they say...

Luckily Revenue Canada keeps a pretty tight check on it (approx 3 year approvals between audit/checks?). So you are guaranteed to get paid overtime at least on audit years LOL!


My old job was averaged over 4 weeks. Meaning the same rules but scaled down to 4 weeks. Kept the overtime bills much smaller, but doesn't let companies who are busy in the summer take advantage of their employees like they want to so many average over the full year.


I should note this is for a full time year-round employee. Not sure on seasonal/part time deals.

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Nothing new there. Companies have been doing it for years. Basically, any company that does "seasonal" work (ie busy periods followed by slow ones, like tree planting, farming, etc.) can apply for exemption from paying overtime when employees work more than 40 hours per week and average these hours worked over the course of the year.


So basically, if you work for operator x on salary, they can pay your base salary on the basis of 40 hours per week, and at the end of the busy season, they keep paying your base salary until you use up all of those extra hours worked, at which point, if they're a crap company, they lay you off until they need you again, or if they're good, just keep paying your base salary even if you're sitting at home.


As long as you don't exceed 2080 hours worked in a year (52 x 40), they never owe you any overtime pay. This is also why just about every operator out there counts a full day worked as 8 hours, rather that the 12-14 we typically work. Otherwise, they'd end up having to pay a lot of their employees overtime once they bust the 2080 limit...


An employer who gets approval for averaging must notify all of their employees within a certain number of days from the time they receive the approval so that the employees may decide that they prefer not to participate and go work elsewhere. It's basically a form letter that states that the company has received approval for averaging under tha Canadian labour code and includes applicability dates. If your employer does not advise you, then you can file a complaint and sue for any overtime you weren't paid while working more than 40 hours per week. If memory serves, the employer has to renew every two years, so if you just got a memo or letter to that effect, your employer has probably just renewed their exemption.


This whole averaging thing only works for permanent and seasonal salaried employees. If you're a contractor and work on a day rate + flight pay or just flight pay with mins, then the whole thing doesn't apply to you.


Was my explanation simple enough for you ? ;)

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For the averaging I've worked (designated seasonal employer) it works, as ThreePer said, based on the assumed 40 hour work week. Company had to post a notice at start of season stating that they average hours and what the defined averaging period was.


So if the company states (applied to HRSDC and got permision for) a 20 week season then they don't have to pay a cent in OT for anyone covered under averaging unless they exceed 40 hours/week on average. In this case, 20 weeks x 40 hours would be 800 hours. Once the defined season is done, then the company pays out OT (the remaining half rate) on all hours beyond 40/week on average. You worked 799 hours in 3 weeks, no OT. If you worked 801 in the 20 week stretch, you get OT for 1 hour, no matter how the hours were spread out.

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Incorrect, as Skidz already said we are are subject to the Federal rules, much like RCMP etc...


Also, Alphadog asked it to be explained simply, as we all did. Anyone can Google something, or copy/paste a link...


Instead of relying on opinions and bit s of information try this link.





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