Managing, tracking and paying overtime is a challenge for some companies. That’s in part, because these companies do not have the right tools to help them with this issue. Overtime has presented itself as a “hot potato” when not applied accurately. Case in point, litigation in recent years has made many companies take note of the rules governing overtime payments.
Canada’s labour code on hours of work and pay states, in part:
“The standard hours of work are eight hours in a day and 40 hours in a week. The maximum number of hours of work for a week is 48 hours. Certain provisions permit flexibility in applying these standards. As well, special regulations cover certain classes of workers in specific industries such as city and highway transport drivers. However, the Code makes no distinction between full-time, part-time or casual workers.”The quote goes on to say:
“The maximum time a worker may work each week can be exceeded for exceptional circumstances such as emergency work or averaging of hours. However, hours of work provisions in the Code do not apply to those who have management functions, or to members of specific groups such as the engineering and medical professions.”
The above guideline by Human Resources and Skills Development Canada is a good measuring stick that can be used by payroll professionals when determining overtime pay for employees. In addition to this guideline, organizations need to factor in collective bargaining agreements (if applicable), industry type and labour codes unique to the jurisdiction/s in which they operate.
For organizations with several locations in different provinces and/or states, attempting to calculate overtime through an antiquated system can present a herculean challenge. ATS time attendance, and labour management solutions help you increase the speed and accuracy of payroll preparation, improve wage compliance, and optimize a rapid return on your investment.
The ATS time and labour solution shows hours worked in real-time and helps determine when an employee is approaching overtime so you can ensure your company has the right amount of coverage, helping you reduce the costs associated with overstaffing.
3 ways to streamline labour costs and take control of overtime:
Reduce Labour Costs: Control overtime hours while improving efficiencies with employee time capture to reduce manual errors.
Eliminate Technology Costs: With an ATS (SaaS) software-as-a-service time and attendance solution, customers can access the software 24/7 365 days a year through any web browser. Hassles of upgrading software become a thing of the past.
Notifications: The ATS time and attendance solution triggers notifications (including e-mail notifications) in real- time to alert managers of issues requiring immediate attention.
To learn more about our time and attendance solutions including automated overtime tracking methodologies, go to our website.