Each province maintains labour standards that dictate the rules employers are to follow for payment of their employees. Newfoundland and Labrador is no exception. Here are some guidelines to help you meet your Newfoundland and Labrador employment standards.
What is a work week and how many days can an employee be required to work?
A work week is seven consecutive days as designated by the employer. If the employer does not designate a week, then it is seven consecutive days starting at midnight on Sunday. Employees must receive twenty-four consecutive hours off work in each week; if possible the day off should be Sunday.
How many breaks is an employee entitled to each day and are they paid?
After five consecutive hours of work an employee is entitled to a one hour break. This break is not paid, unless the employer maintains the right of direction or control during this period, in which case it is paid.
- For example: If a sales associate is working alone in a store and they are not permitted to leave or to close to take a break the employer is retaining the right of direction during the break period; therefore, the employee would get paid for their break.
When do I have to pay overtime and how is it calculated?
Overtime must be paid on any hours worked over forty hours per week. The minimum overtime rate is 1.5 times the minimum wage rate. Minimum wage is currently $12.50/hour which means the minimum overtime rate is $18.75/hour.
On October 1, 2021, minimum wage will increase to $12.75/hour, meaning the minimum overtime rate will increase to $19.12/hour.
Can an employee bank overtime?
Yes. Instead of overtime pay an employee may receive 1.5 hours of paid time off work for each hour of overtime worked when an employee and employer agree to do so. This is subject to two conditions:
- The time off must be taken within three months of the time the overtime was worked, unless the employee and employer agree to extend the time.
- Payment or time off must be finalised within 12 months of the time the overtime was worked.
If two employees switch shifts and one will now work more than forty hours, do I still have to pay overtime?
No. If a request to change shifts is submitted in writing to the employer, and the employer approves the request resulting in an affected employee working more than forty hours, the employer is not required to pay overtime pay.
Are there a minimum number of hours of work for which I must pay an employee?
If an employee is called in to work and isn’t require to work at least three hours, the employer must either:
- Let the employee work for three hours, or
- Pay the employee for the un-worked portion at the minimum wage rate or the minimum overtime rate, whichever is appropriate.
If an employee is scheduled to work two hours a day, then they must only be paid for the two hours worked.
If an employee reports for a shift of more than three hours and finds it cancelled they must be paid for three hours.
Do I have to pay employees for undertaking duties that cannot be completed during their normal work day?
If an employer requests that an employee be present at the workplace, then the employee should be paid. For example:
- Mandatory attendance at a meeting held before the workday begins or after it ends
- Staying past the scheduled end of the shift to close business for the day (cleaning, cashing out, etc.)
- Attendance at training requested by the employer.