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 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


  • Some clarification on what deductions are allowed – this is a complicated payroll item and should be reviewed with a payroll expert


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.