An averaging agreement in BC allows an employer and employee to average working hours over one to four weeks instead of following the usual daily overtime rules. This can allow longer shifts, such as four 10-hour days, without overtime pay for those scheduled hours.
However, averaging agreements must meet strict requirements under BC’s Employment Standards Act. Employees can still be owed overtime, even with a signed agreement.
? Key Point: An averaging agreement must be in writing, signed before it starts and average no more than 40 scheduled hours per week. An invalid agreement doesn’t remove your overtime rights.
On This Page
- What Is an Averaging Agreement?
- Legal Requirements
- Overtime Pay Rules
- Example
- Frequently Asked Questions
What Is an Averaging Agreement in BC?
An averaging agreement is a written arrangement allowing an employee’s working hours to be averaged over one, two, three or four weeks.
Instead of working five eight-hour days, an employee could agree to work four 10-hour days per week without receiving overtime for the regularly scheduled ninth and tenth hours.
The agreement changes how overtime is calculated. It doesn’t eliminate overtime pay or other employment standards protections.
What Makes an Averaging Agreement Legal in BC?
Under section 37 of BC’s Employment Standards Act, a valid averaging agreement must:
- Be in writing and signed by both employer and employee before it starts
- Cover an averaging period of one to four weeks
- Include a daily work schedule
- Average no more than 40 scheduled hours per week
- State its start and end dates
- Specify how many times it can repeat, if applicable
- Be provided to the employee before it takes effect
A verbal agreement isn’t enough. If these requirements aren’t met, the regular overtime rules can apply.
Employers don’t need to register averaging agreements with BC’s Employment Standards Branch.
How Does Overtime Pay Work Under an Averaging Agreement in BC?
Employees can still earn overtime under a valid averaging agreement.
| Situation | Overtime Pay |
|---|---|
| Extra hours beyond a scheduled shift of 8 or more hours | 1.5× regular pay, up to 12 hours |
| Hours beyond 12 in a day | 2× regular pay |
| Hours exceeding an average of 40 per week during the agreement | 1.5× regular pay for qualifying excess hours |
For shifts scheduled at less than eight hours, daily overtime starts after eight hours worked. Daily overtime hours aren’t counted again when calculating weekly overtime.
If the agreement is invalid, the usual overtime rules can apply: time-and-a-half after eight hours in a day or 40 hours in a week, and double time after 12 hours in a day.
See our Overtime Pay BC guide for the standard rules.
Example of an Averaging Agreement in BC
An employee signs a valid agreement to work four 10-hour shifts each week.
- Scheduled: Monday to Thursday, 10 hours per day
- Total: 40 hours per week
- Overtime: None for the scheduled 40 hours
If the employee works 12 hours on Monday instead of 10, the two additional hours must be paid at time-and-a-half.
If the employee works beyond 12 hours in a day, those additional hours must be paid at double time.
Averaging Agreements BC: Frequently Asked Questions
Can an Employer Force You to Sign an Averaging Agreement in BC?
An averaging agreement requires the employee’s agreement and signature. An employer can’t simply impose an averaging agreement or treat an unsigned schedule as a valid agreement.
Can You Work 10 or 12 Hours Without Overtime in BC?
Yes. A valid averaging agreement can allow scheduled shifts of up to 12 hours without daily overtime, provided the agreement meets the legal requirements. Hours beyond 12 must be paid at double time.
What Happens if an Averaging Agreement Is Invalid?
The regular BC overtime rules can apply. Employees could be owed additional overtime pay for hours previously paid at their regular rate.
Can an Averaging Agreement Cover More Than Four Weeks?
Not under the standard rules. Averaging periods are limited to one to four weeks, although a longer period can be permitted through an Employment Standards variance.
Do Averaging Agreements Remove Your Right to Breaks?
No. Employees remain entitled to applicable meal breaks and other employment protections. See our Break Times BC guide.
Know Your Overtime Rights in BC
An averaging agreement doesn’t automatically eliminate overtime pay. If your employer isn’t following the agreement or the legal requirements, you could be owed additional wages.
For unpaid overtime, see our Unpaid Wages BC guide.
If your employer is also making major unwanted changes to your pay, hours or employment conditions, you could have constructive dismissal rights.
The BC employment lawyers at Samfiru Tumarkin LLP help non-unionized employees understand their employment rights and pursue compensation after wrongful or constructive dismissal.
Before you sign, always check first.
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