We previously reported on the proposed changes to the Alberta Employment Standards Code following the introduction of Bill 2: An Act to Make Alberta Open for Business, by the United Conservative Party (“UCP”) on May 27, 2019.

Bill 2 received royal assent on July 18, 2019 and the changes to holiday pay and banking overtime will come into effect on September 1, 2019. This blog is a reminder to employers that the amendments to holiday pay and banking overtime will have an impact on employers’ policies and practices. Employers are reminded to review any overtime agreements and holiday pay practices prior to September 1, 2019.

Employment Standards (Flexible Averaging Agreements) Amendment Regulation, AR 71/2019(“FAA Amendment Regulation”)

Effective September 1, 2019, the FAA Amendment Regulation removes the ability for employers and employees to enter into a Flexible Averaging Agreement (“FAA”). An FAA allowed employees and employers to agree to a short-term straight overtime banking arrangement. The changes to banking overtime mean that FAAs will no longer be necessary because employees will be able to bank time and take it off with pay on a 1 for 1 basis instead of being paid overtime.

The FAA Amendment Regulation provides for a transitional period. For employers and employees who currently have an FAA in place, the FAA will remain valid until the earliest of the following:

  1. the date the FAA is cancelled;
  2. in the case of an FAA made as part of a collective agreement, the date a subsequent collective agreement is entered into; or
  3. two years after the date the FAA Amendment Regulation comes into force (September 1, 2021).

Note that there have been no changes or proposed changes to the Hours of Work Averaging Agreement provisions in the Employment Standards Code.