Averaging agreements

Employees can agree to work modified schedules through an averaging agreement. These standards come into effect on January 1, 2018.

The legislation on this page comes into effect on January 1, 2018

For information on Employment Standards legislation that is in force until December 31, 2017, go to http://work.alberta.ca/employment-standards.html

Additional information regarding the rules for the calculation of overtime, work schedules, terms and conditions, scheduled daily and weekly hours of work, and providing copies of agreement will be available by January 1, 2018.

Basic rules

  • an employee or a group of employees may enter into an hours of work averaging agreement
  • employer will average an employee’s hours of work over a period of 1-12 weeks to determine overtime pay or time off with pay
  • extending the averaging period over 12 hours a day requires a variance issued by the Director of Employment Standards

Averaging agreement requirements

The averaging agreement must be in writing as a collective agreement or agreement between an individual employee and employer and include:

  • the start and end date
  • term of agreement cannot exceed 2 years unless the term is part of a collective agreement and terminates the day a subsequent collective agreement is entered into
  • the number of weeks (up to 12) the hours will be averaged over
  • the scheduled daily and weekly hours of work that must not exceed:
    • 12 hours per day, and
    • 44 hours per week or an average of 44 hours per week (unless a different overtime threshold applies for the industry or occupation)
  • how overtime pay and time off with pay will be calculated

Previous compressed work week arrangements

Compressed work week arrangements entered into before January 1, 2018 will remain valid until the earliest of:

  • January 1, 2019,
  • termination of the compressed work week arrangement, or
  • the day a subsequent collective agreement is entered into if the compressed work week arrangement was made under a collective agreement