December 31, 2017 Payroll Changes Alberta

Binders

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

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.