Virtual HR Department

Compensation and Benefits

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Organizations must meet the minimum standards for overtime pay as set out in applicable federal and provincial legislation. Links to the various federal and provincial employment standards websites can be found in the Resources and Links section of this website.

Above and beyond these minimums, organizations have the option of recognizing employee overtime via cash compensation in the form of pay (at a rate equal to normal salary or at a premium rate), through the use of time off in lieu (calculated at a straight hour-for-hour rate or by applying a premium) and/or through giving it consideration as part of year-end incentive awards. There are also options to use non-cash compensation methods as part of a rewards and recognition program. Further information and ideas an be found in the Reward and Recognition section of this website.

Certain staff levels come under legislation requiring that they be compensated for overtime hours. It is not uncommon for organizations to implement a multi-tiered system for those employees at levels where overtime pay is not mandated by legislation, with differing rewards based on the behaviours, motivations and results desired by the organization at each level.