December 31, 2017 Payroll Changes Alberta
Payroll changes are coming December 31, 2017– How will they affect your business?
As of December 31, 2017 the Alberta Labour laws are changing – these payroll changes will effect your business if you have any of the below that apply.
General holiday and general holiday pay
- The requirement to have worked for 30 days in the 12 months before the holiday will be removed. The distinction between regular and non-regular days of work will be eliminated.
- General Holiday pay will be calculated as 5% of wages, general holiday pay, and vacation pay earned in the 4 weeks immediately preceding the holiday.
- This means that the 5/9th rule is disappearing and that the employees are immediately eligible for stats once they start work.
Overtime
- Overtime banking must be banked at 1.5X rather than hour for hour
- Overtime can be banked for 6 months
- Anyone who is banking time should contact a payroll specialist to ensure their overtime is being properly reported starting December 31, 2017 – this should be looked at before the deadline.
Compressed Work Weeks (Averaging agreements)
- Must be supported by majority of employees or contained in union agreement
- Employers and Employees agree on average hours over 1-12 week periods.
Rest Periods
- Employees must be given a 30 minute break (paid or unpaid ) every 5 hours – can be in 2- 15 minute breaks
Deductions
- Some clarification on what deductions are allowed – this is a complicated payroll item and should be reviewed with a payroll expert
Leaves
- Leaves can now start after 90 days, not 1 year
- Compassionate care leave is now 27 weeks – Unpaid job protected
- Can be taken in installments
- Includes non-primary caregivers now
- Notice to employer is still 2 weeks, although language is changing to say as soon as reasonable.
- Return to work is 1 week notice now
- Ends upon end of week of death or end of medical certificate – whichever is first
- Maternity/ Parental leave – Unpaid job protected
- Extends to 16 weeks maternity
- Extends to 37 parental
- Both to match New EI legislation
- There are many leaves available –
For further clarification contact us or
The Alberta Government website is here
For most of our companies the Stat, Overtime and leaves will have the most effect – if you are in an unusual industry or farming there are other changes that you might need to be aware of. Contact our payroll specialists for more information now.