Banking overtime can be as simple as a few clicks - find out how

In our latest legislative roundup, we explored overtime banks – what they are and the legislation to which they're subject across Canada. What we learned is that banking overtime is the process by which an employee can receive time off as compensation for overtime hours as an alternative to overtime pay. Sure, this sounds simple enough… but the legislation differs between provinces and territories. In some jurisdictions, banked hours are only permissible with an overtime agreement or a fixed cycle averaging agreement, while in others, banking overtime isn’t permitted at all! For more information on this legislation, visit: https://blog.payworks.ca/the-ins-and-outs-of-banking-overtime-in-canada. 

As someone who’s responsible for payroll, you already know that the legislation can be complicated to navigate and put into action. If our last deep-dive on banked overtime left you wondering how you can properly implement and administer an overtime bank for your business – or improve the efficiency of your current overtime banking process – look no further!

By using Payworks’ Time Management solution, our clients have access to timesheets. This is where employee hours are captured via facial recognition clocks, more traditional punch clocks, or hours entered manually on a desktop or mobile device by either the employee (with approvals in place) or the admin.

The process of capturing employee hours naturally includes overtime hours, and this is where the time bank comes in!

1. If a device, like a punch clock, captures employee hours, we can configure your account to automatically identify overtime hours and put them into an overtime bank as opposed to paying them out for that pay period. This can be set up to follow provincial or territorial legislation or an averaging agreement that supersedes legislation.
2. If an employee’s hours are manually captured in timesheets, we can configure your account to automatically identify overtime hours and put them into an overtime bank as opposed to paying them out for that pay period. This can be set up to follow provincial or territorial legislation, or an averaging agreement that supersedes legislation. Another option is to provide the employee with the ability to directly and manually enter overtime hours to be placed into the time bank. The manager or admin can later review these hours and approve or override them as needed.

Payworks pro tip: Automations for overtime banking can be established at the time of account setup by talking with one of our sales reps or Implementation Specialists. They also can be set up at any time after that as your policies and preferences change! Simply reach out to your dedicated Client Service Representative to learn more.

This is an efficient way to accurately manage overtime banking in one centralized location. Our Time Management solution also offers autonomy, factoring in a number of legislative components - from provincial/territorial rules and company standards and shift rules to other legislative considerations, such as double overtime and stat holiday pay. Plus, all of the information seamlessly flows into payroll through the integration with our Payroll solution.

Handling requests to use the time bank

Now that your time bank is set up and hours are accruing within it, it’s time for employees to either request to be paid out those wages or receive time off in lieu using Time Management or Absence Management, or a combination of both.

By accessing timesheets in Time Management, employees can make a request to be paid out for a portion or all of the hours in the time bank, or they can request to use them as time off in lieu (after manager approvals). For those using Absence Management, employees can view their time off accruals (including their time bank) via desktop or mobile using Employee Self Service (ESS). From here, they can submit a time off request to use their banked hours – the exact same process they use to request vacation or log sick time and other absence types.

Payworks pro tip: Both Time and Absence Management are seamlessly integrated with our Payroll solution. That way, when hours are withdrawn from the time bank, the information is both accurate and timely for the next pay period.

Wondering how much modern workforce management technology like this costs? Spoiler alert – it’s more affordable than you think! Get a free, no-obligation quote for life-changing payroll and time management services by visiting https://www.payworks.ca/quote.