Canada Labour Code

Marginal note:Overtime pay or time off

• 174 (1) Subject to any regulations made under section 175, when an employee is required or permitted to work overtime, they are entitled to

  • (a) be paid for the overtime at a rate of wages not less than one and one-half times their regular rate of wages; or

  • (b) be granted not less than one and one-half hours of time off with pay for each hour of overtime worked, subject to subsections (2) to (5).

• Marginal note:Conditions

  (2) An employee is entitled to time off for overtime worked only if,

  • (a) at their request, they and the employer enter into an agreement in writing providing for the taking of time off, subject to paragraph (b) and subsections (3) to (5), on a date or dates agreed on by them and the employer; and

  • (b) the time off is taken within a period of three months after the end of the pay period in which the overtime was worked, or within any longer period set out in

    • (i) if the employee is subject to a collective agreement, the collective agreement, or

    • (ii) if the employee is not subject to a collective agreement, the agreement referred to in paragraph (a) or any other agreement in writing entered into by them and the employer.

• Marginal note:Maximum period

  (3) The longer period referred to in paragraph (2)(b) shall not be more than 12 months for an employee who is not subject to a collective agreement.

• Marginal note:Time off not taken within specified period

  (4) If the employee does not take all or part of the time off within the applicable period referred to in paragraph (2)(b), the employer shall, within 30 days after the day on which that period ends, pay the employee’s wages for the overtime for which the time off was not taken, at a rate of wages not less than one and one-half times the employee’s regular rate of wages on the day on which they worked the overtime.

• Marginal note:Termination of employment

  (5) If an employee ceases to be employed before the employee takes all or part of the time off referred to in paragraph (1)(b), the employer shall, within 30 days after the day on which the employee ceases to be employed, pay the employee’s wages for the overtime for which the time off was not taken, at a rate of wages not less than one and one-half times the employee’s regular rate of wages on the day on which the employee worked the overtime.

• Marginal note:Application of section 189

  (6) Section 189 applies for the purposes of this section.