First published on Friday, December 9, 2022
Last updated on Tuesday, October 22, 2024
It's common to lose track of time, whether at home or work. Most of the time, this has no severe consequences. However, employers need to track their staff's working hours so that no time is wasted while at work.
Not only is tracking your employees' hours worked important for your bottom line, but you must also keep track of hours of work and the laws regarding them. This includes providing adequate rest breaks and following overtime regulations.
Getting this wrong can lead to legal trouble and costly penalties. So, it's best practise to consult with employment relation experts.
In this guide, we'll explain everything employers should know about Canada's work hours, the law regarding them, and how to track their employees' hours of work correctly.
What are hours of work?
Employment standards legislation defines hours of work as the hours worked by an employee in a workday or work week. Every jurisdiction limits the hours each employee is allowed to work in a day or week. For example, Ontario's Employment Standards Act states that the maximum hours allowed to work in Ontario is 8 hours a day and 48 hours a week.
Rules and limits regarding hours of work apply to most employees. However, some classes of employees are not covered under these rules. These include:
Professional engineers
Public accountants
Massage therapists
Physiotherapists
Employees who are exempt from these rules may work more than the maximum daily or weekly hours in their jurisdictions. However, both the employer and the employee must agree to this.
These rules do not apply in New Brunswick and Newfoundland & Labrador. Remember to always check the specific regional regulations for your jurisdiction for accuracy.
This is generally done through an "averaging agreement."
What is an averaging agreement?
As an employer, you can enter into an agreement with your employee to exceed the maximum working hours under an averaging agreement. However, it is essential to obtain explicit consent from your employees for these agreements.
This agreement between the employer and employee allows the employee to work a modified schedule for a specific period. For example, an employee may agree to work 12-hour days in exchange for an extra day off.
You may also agree to sum up their extra hours worked over the entire averaging period and divide it by the number of weeks, instead of calculating their overtime hours each day or work week.
Although averaging agreements provide flexibility, certain jurisdictions have stricter rules regarding their use, such as limiting the duration or the number of times such agreements can be used in a year. It is critical to review specific regional guidelines and obtain proper approval when necessary to ensure compliance.
Overtime and averaging agreements
Overtime is a crucial aspect of employment standards, and each jurisdiction has its own rules on when overtime begins. For example, in Ontario, overtime is calculated at 1.5 times the regular wage rate for hours worked over 44 hours per week, whereas other provinces, like Alberta, have a different threshold.
Even with an averaging agreement, employees may still be entitled to overtime if they exceed the average hours agreed upon. For example, if an employee is on a 40-hour per week averaging agreement but works 50 hours in one of those weeks, the additional 10 hours would typically be considered overtime.
How many hours can you work in a week?
Employment standards legislation limits the maximum hours an employee may work in a week. For example, the maximum hours allowed to work in Ontario is 48 hours in a week.
An employee can work more than the weekly maximum hours permitted under employment standards legislation. However, you must pay the employee overtime or have an averaging agreement in place.
Having your employees work in excess of the stipulated hours without an agreement or overtime pay could expose your business to penalties, legal action for non-compliance, or costly fines. The employee can file a claim with their provincial labour board, leading to investigations and sanctions against you as their employer.
Student Work Hours
Students—whether high school or post-secondary—are permitted to work in Canada. However, they have different working conditions, and employers must follow statutory requirements when employing students.
For example, in Ontario, employers may pay employees under the age of 18 a "student wage." Some other provinces do not differentiate between student and minimum wages.
For international students, it is important to note that the recent change allowing them to work more than 20 hours per week off-campus is not universally applicable. International students are only permitted to work more than 20 hours in specific periods, such as when school is not in session or if their program qualifies under certain exceptions. It is essential to verify these rules based on the specific student’s visa status and ensure compliance to avoid penalties.
What is considered full-time work?
Full-time working hours in Canada are generally between 37.5 – 40 hours a week. All of your employees are protected by employment standards legislation regardless of their working patterns.
Employment standards legislation does not differentiate between full-time, shift, flexible, remote, and part-time employees.
For more information on full-time employees, see our guide to employing full time staff.
How to calculate hours worked
It is vital to keep track of all your employees' hours of work. It's crucial information that influences various aspects of your business, including payroll, taxes, compliance with legislation, and to avoid cases of time theft. There are multiple methods of calculating your employees' hours worked. These include:
Manual timekeeping methods
One of the oldest tricks in the book is tracking your employees' hours of work via pen and paper. You would have each employee write down their daily hours. Your employees can also use physical timecards to punch in and out when they arrive and leave. This method can be tedious and exposes you to potential time theft.
Electronic timeclocks
Electronic timeclocks are widely used in various industries. However, like manual timekeeping, they are susceptible to time theft as there is no way to track when employees clocked in.
Mobile apps
A mobile application allows employers to track when employees clock in through online-based software. This makes it convenient for employers to track employees from anywhere.
GPS time tracking
If you have employees who work on the road or are remote, you can track their working hours through GPS. The added benefit of GPS tracking is that you are always in the loop about where all your employees are.
What happens if employees work too many hours?
If an employee works more weekly hours than they are supposed to, they may be entitled to overtime pay. Moreover, when your employees are overworked, it can lead to employee burnout.
Signs of employee burnout may include:
Decrease in productivity
Difficulty in performing daily tasks
Failure to meet deadlines
Increased absenteeism
If your employees are already displaying signs of burnout, it's vital to do everything you can to reverse that trend and establish a healthy workplace culture by assisting overworked employees.
Some employees may want to work more shifts and overtime, but it's your duty as an employer to ensure your staff are taking regular breaks and using their vacation entitlements. Encouraging your staff to disconnect from work without any repercussions can go a long way toward improving their work-life balance.
Get expert support on managing employees' hours of work with BrightHR
Every employer needs to have an efficient method to track work hours in their workplace. Not only does having an efficient system ensure your employees are never burnt out, but it also keeps you in line with employment standards legislation and protects you from legal risks.
BrightHR's time-tracking system eliminates guesswork and makes tracking your employees' overtime hours stress-free. You'll get a clear view of your staff's hours, view, edit, or cancel overtime requests, and allow them to log their additional hours for better transparency.
Plus, with our clocking in and out app—Blip, you'll always have real-time updates on who's in, off, or on a break. And if you have remote employees, you can also keep track of their hours worked with our geolocation feature.
If you need assistance tracking working hours, our BrightAdvice service allows you to receive quality advice on any employment issues you may have.
Contact us at 1 888 220 4924 or book a demo today.
