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An hours of work averaging agreement (HWA) is an agreement between an employer and employee that allows for the averaging of hours worked over a fixed period of time, such as a week or a month. This type of agreement can be beneficial for both parties as it provides flexibility for employers and can help employees maintain a better work-life balance.

In Ontario, an HWA must meet certain criteria to be considered valid. The agreement must be in writing and signed by both the employer and employee. It must specify the averaging period, which cannot exceed four weeks. The agreement must also outline the maximum number of hours an employee can work in a day and week, as well as the overtime rates that will apply.

It is important to note that an HWA cannot be used to avoid paying overtime rates. If an employee works more than the agreed-upon hours during the averaging period, they must be compensated for the extra hours worked at an overtime rate.

As per the Ontario Employment Standards Act, an HWA can be terminated by either party with written notice. The notice period must be equal to the length of the averaging period or two weeks, whichever is longer.

Employers must ensure that they are complying with all applicable laws and regulations when entering into an HWA with their employees. Failure to do so can result in penalties, fines, and legal action.

In summary, an hours of work averaging agreement can provide flexibility and work-life balance for both employers and employees in Ontario. As an employer, it is important to ensure that any HWA entered into is in compliance with all applicable laws and regulations. As an employee, it is important to understand your rights and ensure that you are being compensated fairly for all hours worked.