Averaging Agreements
As an employer in Canada, you know the importance of managing labour costs while maintaining a productive and motivated workforce. One strategy that can help achieve both of these goals is the use of averaging agreements.
Averaging agreements allow employers to average employee working hours over a specified period, such as a week or a month. This means that employees can work longer hours on some days and shorter hours on others, without incurring overtime pay or other premium rates. This arrangement can be especially beneficial in industries that have fluctuating demands or seasonal variations in workload.
Why are averaging agreements so useful for business owners?
By implementing averaging agreements, you can ensure that your labour costs remain predictable and manageable, without sacrificing the quality of work or the morale of your employees. This arrangement can also provide flexibility for your staff, allowing them to balance work and personal commitments more effectively. As a result, you can create a more harmonious and productive work environment that benefits both your employees and your bottom line.
What are the consequences of not having an averaging agreement?
Without an averaging agreement, employers may be required to pay employees overtime or other premium rates for any hours worked beyond their regular schedule. This can result in increased labour costs and unpredictability, especially in industries that have fluctuating demands or require staff to work irregular hours. Additionally, failing to comply with relevant legislation or collective agreements can result in legal disputes, penalties, or other regulatory actions.
Do you know how to create an averaging agreement that is compliant with the law?
It is important to ensure that any averaging agreement complies with relevant legislation. By working with our expert advisors, you can design a customized arrangement that meets your business needs while safeguarding your legal obligations. Call our complimentary employer helpline to speak with our HR experts today at 1-833-247-3650.