Changes in Workplace Rules for Nonprofits
On July 29, Bill 32, Restoring Balance in Alberta’s Workplaces Act, received royal assent with sweeping changes to the Employment Standards Code and the Labour Relations Code that will impact employers, employees, and unions. Many of the changes have already taken effect, and other changes will take effect in due time. Given the number of changes, it may be challenging to understand what applies to your organization. This post will outline what has changed, the implications for your organization, and when the changes will take effect.
Amendments made to the Labour Relations Code did not apply to nonprofits and therefore were not included in this post. However, we have covered the amendments to the Employment Standards Code that impact the sector.
Changes to the Employment Standards Code
Hours of work averaging arrangements
‘Averaging agreements’ are now ‘averaging arrangements.’ Averaging arrangements allow employers to schedule an employee, or group of employees, to work longer hours per day paid at the employee’s regular wage rate.
What are the changes?
Employers can now average an employee’s hours of work over a period of one to 52 weeks to determine overtime pay; instead of overtime pay, employers may offer time off with pay.
The rules are now more flexible for employers to establish hours of work averaging arrangements. Employers are no longer required to obtain employee consent and can start or change an hour of work averaging arrangement on two weeks’ notice.
Averaging arrangements must:
be in writing;
specify the number of weeks over which hours will be averaged and must not exceed 52 weeks (previously 12 weeks). However, extensions past 52 weeks can be approved by the Director of Employment Standards; and
include a schedule setting out the daily and weekly hours of work for the averaging period.
Employers can change employee shifts, but employees must receive 8 hours of rest between shifts.
Overtime pay for employees is calculated on the greater of weekly or daily overtime hours when daily overtime is included. Averaging period overtime must be paid to the employee no later than ten days after the pay period that the averaging period ends, which may be as long as 52 weeks, as determined by the employers.
Effective: November 1, 2020
Rest Periods
What are the changes?
Employers must provide an employee, either paid or unpaid, at least one rest period of at least 30 minutes when they work a shift between 5 and 10 hours. If an employee works a shift of 10 hours or more, they must receive at least two rest periods of at least 30 minutes each. The 30-minute rest period can be taken in two periods of 15 minutes each.
The rest period can be taken within or immediately after the five hours of work, or as agreed upon between the employer and employee.
Effective: November 1, 2020
Temporary layoffs
What are the changes?
Employers are no longer required to provide advance notice to employees of a layoff.
The temporary layoff period has been extended to 90 days within a 120-day period (previously 60 days within a 120-day period).
For layoffs related to COVID-19, the temporary layoff period is 180 consecutive days.
Effective: August 15, 2020
Variances and Exemptions
What are the changes?
Under section 74, the rules are now more flexible for individual employers and groups of employers to get approval for and renew a variance or exemption to the Employment Standards Code requirements.
Effective: August 15, 2020
Group Termination
What are the changes?
When employers lay off 50 or more employees at a single location within a four-week period, they are required to provide the Minister of Labour a written group termination notice.
The group termination notices must now be provided at least four weeks for any termination of 50 or more employees in the same location within a 4-week period. Previously, notices were required at least 8 to 16 weeks in advance if there were 50 or more affected employees.
A notice is not required for employees who are employed on a seasonal basis or for a definite term or task.
Effective: August 15, 2020
Holiday pay
What are the changes?
The average daily wage of an employee, in relation to a general holiday, is calculated by averaging the employee’s total wages in whichever of the following periods the employer chooses over the number of days worked by the employee in either the four-week period immediately preceding the general holiday, or the four-week period ending on the last day of the pay period immediately preceding the general holiday.
Effective: November 1, 2020
Deductions from earnings
What are the changes?
An employer can now deduct an amount from an employee when there is an overpayment that has either resulted from a payroll calculation error or vacation pay paid to the employee before they were entitled to it. However, employers cannot make overpayment deductions past six months if the overpayment was the result of a payroll calculation error.
The employer is required to provide notice to the employee when these deductions are made; however, they are no longer required to have an employee’s written agreement.
Effective: November 1, 2020
Payment of earnings upon termination
What are the changes?
Sections 9 and 10 have now been repealed. Employers now have the option to pay an employee their final wages within ten consecutive days after the end of the pay period in which termination of employment has occurred, or 31 consecutive days after the last day of employment. Earnings were previously required to be paid within three or ten consecutive days following termination with or without cause.
Effective: November 1, 2020
Statutory Leave
What are the changes?
The time that an employee spends on a statutory leave will now be counted to determine the basic vacation entitlement.
Effective: November 1, 2020
What do these changes mean for nonprofits?
Nonprofits with paid employees must adhere to the changes in regulations. We encourage your organization to contact CCVO on how these amendments have or will impact your organization. You can contact us to discuss these changes at policy@calgarycvo.org.