Ask the ExpertCategory: QuestionsOvertime Agreements
hri_Admin Staff asked 4 years ago

In Canada, must overtime worked be paid out in the same month that it was earned, or can that overtime be banked for payment at a later stage, not going over year end? This is not a question about the ROE or EI Eligibility that was in this month HRInsider.

1 Answers
Glenn Demby Staff answered 4 years ago

Overtime banking IS allowed in most jurisdictions–all but Federal and Nova Scotia, I believe. However, the rules and restrictions, including with regard to how long a banking arrangement can last as well as  procedures for entering into a banking agreement, vary depending on the jurisdiction’s employment standards law (aka, labour standards law). The link below will take you to an HRI piece that summarizes the overtime banking rules in each jurisdiction.  Hope that helps. Glenn. glennd@bongarde.com
https://hrinsider.ca/employees-right-to-bank-overtime/

Serena Traa replied 4 years ago

Hi Glenn and Sean,
I have a follow up to this question. In Manitoba, you are allowed to bank overtime, and in that article it stated that it must be used within 3 months. Do you know if there is a specific provision that employers and employee can decide that the time is taken later than 3 months? If they agree to it in writing, for example? And I am referring to paid time off here, not payment.
As well, when an employee banks their overtime to be used as paid time off, anything about 8 hours and or 40 hours/week must be banked at a time and a half rate, correct?
Thanks

Serena Traa replied 4 years ago

Hi Glenn and Sean,
I have a follow up to this question. In Manitoba, you are allowed to bank overtime, and in that article it stated that it must be used within 3 months. Do you know if there is a specific provision that employers and employee can decide that the time is taken later than 3 months? If they agree to it in writing, for example? And I am referring to paid time off here, not payment.
As well, when an employee banks their overtime to be used as paid time off, anything about 8 hours and or 40 hours/week must be banked at a time and a half rate, correct?
Thanks

Serena Traa replied 4 years ago

Hi Glenn and Sean,
I have a follow up to this question. In Manitoba, you are allowed to bank overtime, and in that article it stated that it must be used within 3 months. Do you know if there is a specific provision that employers and employee can decide that the time is taken later than 3 months? If they agree to it in writing, for example? And I am referring to paid time off here, not payment.
As well, when an employee banks their overtime to be used as paid time off, anything about 8 hours and or 40 hours/week must be banked at a time and a half rate, correct?
Thanks