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 –
    • Bereavement leave
    • Citizenship ceremony leave
    • Compassionate care leave
    • Critical illness of child leave
    • Death or disappearance of child leave
    • Domestic violence leave
    • Long-term illness and injury leave
    • Maternity leave and parental leave
    • Personal and family responsibility leave
    • Reservist leave

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.