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In Canada, the “averaging agreement” is a legal provision included in the Canada Labour Code that gives employers and employees the flexibility to agree to work longer hours for fewer days. The averaging agreement is a tool used to help employers reduce labour costs while allowing workers to work fewer days in a week or month.

Under the Canada Labour Code, an averaging agreement can be established between an employer and employees to average the number of hours worked over a set period. This agreement can be made for a maximum of four weeks.

For example, if the standard workweek is 40 hours, an averaging agreement could be created to allow an employee to work 48 hours in one week and only 32 hours in the following week. The total number of hours worked during the two weeks would be 80, which would average out to the standard 40-hour workweek.

The agreement must be in writing and signed by both the employer and employee(s) involved. Additionally, the agreement must include the start and end dates of the averaging period, the number of hours to be worked during each week, and the total number of hours to be worked during the averaging period.

Employers must also ensure that employees have a rest day each workweek and that they receive overtime pay for any hours worked over 40 in a workweek. Any changes to the averaging agreement must be agreed upon by both parties and made in writing.

It is important to note that an averaging agreement is not the same as a compressed workweek. A compressed workweek is when an employee works the same number of hours in fewer days. For example, a compressed workweek could be when an employee works four 10-hour days instead of the standard five 8-hour days.

In conclusion, the averaging agreement under the Canada Labour Code allows for the flexibility of employees` work schedules. It is important for employers and employees to understand the requirements and terms of an averaging agreement to ensure legal compliance and a satisfactory working relationship.