Shift Averaging Agreement

For an agreement, on average 40 hours over a week, with overtime after 12 hours a day. In this example, employees must work three 12-hour days and a four-hour day during the average one-week period. Overtime must be performed for each work done after 12 hours a day or after 40 hours in the median period of one week. Overtime is calculated on the basis of a daily or average average. Employers can choose one of two options. Employment Services (LAOs) officers check whether an employer`s qualification criteria for the adoption of funding measures are met and whether the rules of means are properly applied. These criteria are as follows: on average, the hours provided cannot exceed 40 hours per week for the duration of the agreement. A worker has the option of paying statutory leave allowance if he has worked 30 calendar days and worked in the 30 days prior to the statutory holiday as part of a funding agreement. The frequency of the contract can be repeated and the employer may also change the schedule if the funding agreement states that it does. Employers who allow workers or require workers to work longer than the hours of work set out in the agreement must pay these workers 1 1/2 times their normal hourly wage for overtime worked.

Do you already have a funding agreement or are you considering using it? Take the time to make sure you check all the right boxes by carefully checking the rules described above. A funding agreement can be a useful tool for defining and maintaining work plans that are predictable and fair to all concerned, while keeping the cost of overtime in check. An employer must notify any affected worker before the start of the funding agreement, two weeks after written notice, unless both parties agree otherwise. Before entering into force a funding agreement, there are some important facts to get fair. And it is interesting to note that the wage obligations contained in the law, based on an “average daily wage” – such as statutory leave pay – must be calculated on the basis of the actual average of the worker`s working day.