Reporting Pay - 802-1-IPG-048
Starting September 1, 2020, interns and student interns in federally regulated industries or workplaces are entitled to the following:
- entitled to receive full labour standards protections, under Part III of the Canada Labour Code
- must be paid at least minimum wage
- Student interns, who are undertaking internships to fulfill the requirements of their educational program:
- entitled to receive certain federal labour standards protections
- not required to be paid
For more information:
Reporting Pay - Canada Labour Code - Part III - Canada Labour Standards Regulations, Section 11.1
Effective Date: November 20, 1992
A provision for reporting pay was included in the 1991 amendments to the Canada Labour Standards Regulations, pursuant to paragraph 181(a) of the Canada Labour Code. These amendments are effective as of September 2, 1991.
There is a need to provide guidance and clarification regarding the scope and operation of the reporting pay provision.
3. Questions and Answers
a. What is the scope and application of reporting pay provision as set out in Section 11.1?
The purpose of the reporting pay provision is to ensure that all employees who are called in to work, where there are no regularly scheduled hours or outside their regularly scheduled working hours, receive equitable compensation for the out-of-pocket expenses and other costs incurred by having to report to work.
To better understand the scope and operation of the reporting pay provision, the various clauses which make up section 11.1 will be analyzed individually.
Section 11.1: "An employer shall pay an employee who…"
"…reports for work at the call of the employer…"
"Reporting for work" includes (a) being called back to work after the employee has left the workplace following the completion of regularly scheduled hours, (b) being called in outside regularly scheduled hours (i.e., days off, vacations, public holidays), and (c) being called in to work when there are no regularly scheduled working hours.
The title "reporting pay" reflects the important requirements that an employee must first be called in to work, and must then actually report to work in order to activate section 11.1.
The fact that an employee is "on call" or on "stand-by" outside regular working hours is not enough to trigger the reporting pay provision. An employee must actually report to his or her workplace in order to activate section 11.1. (But when an employee receives a stand-by premium, see heading below re: "How is Section 11.1 to be applied when employees receive 'stand-by pay' pursuant to a collective agreement or company policy?".)
Another element to consider when applying this provision is whether the employee has, in fact, had to report to the workplace, or whether the employee has simply remained at the workplace. For example, seamen at sea are basically "on call" 24 hours a day due to the nature of their occupation. However, since they never leave their workplace (the ship), the reporting pay provision would not apply.
An employee who reports for work as regularly scheduled is not eligible for reporting pay. Similarly, an employee who shows up at the work site to see if there is any work is not considered to be reporting "for work at the call of the employer". Should the employee be asked to work after showing up at the workplace, however, the reporting pay provisions would apply.
It is impossible to provide an exhaustive list of what does or does not amount to reporting to the workplace. However, when calculating section 11.1 entitlement, one must be aware of the principle that an employee must have been away from the workplace and then reported to the workplace in order to receive reporting pay.
"…wages for not less than three hours of work…"
An employee reporting to work shall be paid for a minimum of three hours of work, regardless of whether or not the employee performs any work after reporting to the workplace. Thus, if the employee performs no work, or works for less than three hours, he must still receive three hours pay at the regular rate of wages; however, if the employee works for more than three hours, then he will be paid for each and every hour worked.
Since this clause may be applicable in complex situations, examples of different scenarios, with accompanying solutions, are provided at the end of this IPG.
- Under the reporting pay provision, employees may work less than three hours, yet receive three hours wages. In these situations only the actual number of hours worked should be used for averaging calculations, and for determining entitlement to overtime.
- For record purposes, the wages paid for hours not worked should be recorded as reporting pay.
"…at the employee's regular rate of wages…"
Section 11.1 provides that the employee will receive three hours of regular wages. "Regular wages" refers to the rate of pay normally received by the employee for performing regularly scheduled work. It does not mean three hours at minimum wage, unless this is the employee's regular wage (e.g., if the employee regularly receives minimum wage, then this rate of pay will apply for the purposes of calculating reporting pay).
Situations may arise where employees are paid on a basis other than hourly wages, for example, an annual salary. In these instances the employee's hourly wage must be determined before section 11.1 can be applied. To do this, reference should be made to section 20 of the Canada Labour Standards Regulations. This section sets out the procedure for determining the hourly rate of wages.
An example of a section 20 calculation is as follows:
- An employee worked 40 hours a week for 52 weeks (a total of 2,080 hours). The employee's salary for the year was $41,600. The employee also received $1,600 for vacation pay, and $5,000 for overtime work.
- To calculate the employee's hourly wage pursuant to section 20 of the Regulations, one must divide the amount of salary received (exclusive of any vacation pay, general holiday pay, and overtime pay received) by the number of hours worked. In this case, we would divide $41,600 by 2,080, which equals $20. Therefore, the employee's hourly wage would be $20/hour.
- It is important to note that reporting pay does not directly affect overtime entitlement; if an employee is called into work in circumstances where overtime pay would usually be paid, then overtime pay must be paid. Reporting pay is only applicable if sufficient hours have not been worked to provide the equivalent of three hours at the regular rate of pay.
- For example, assuming an overtime rate of one and one-half times the regular rate of wages, the employee who reports for work but does not perform any work or works fewer than two hours is entitled to three hours at the regular rate of wages. If the employee is required or permitted to work more than two hours, then he must be paid overtime wages for each hour worked in accordance with section 174 of the Code.
Again, the examples at the end of this IPG should assist in clarifying this matter.
"…whether or not the employee is called on to perform any work after so reporting for work".
As indicated above, once the employee has reported to work at the employer's call, he is entitled to receive a minimum of three hours of regular wages, regardless of whether any work is actually performed after so reporting.
b. How is Section 11.1 to be applied when employees receive reporting pay pursuant to their collective agreement?
Where an employee's entitlement to reporting pay and the calculation thereof are governed by a collective agreement, then the employee will be compensated pursuant to the collective agreement, rather than the reporting pay provision, as long as the amount received under the collective agreement is equal to or greater then the Code minimum (i.e, three hours of regular wages).
In these circumstances it must be determined how much money the employee receives pursuant to the collective agreement for wages, expenses, or a combination of the two. If the amount received under the collective agreement equals or exceeds three hours wages, then the requirements of section 11.1 are satisfied; conversely, if the amount is less than three hours of wages, then the employer must pay the employee the additional sum necessary to ensure that three hours wages are paid (i.e., subtract the amount paid under the collective agreement from three hours of regular wages - the remainder is the total owing to the employee pursuant to section 11.1).
It is important to note that section 22 of the Canada Labour Standards Regulations requires that when the value of expenses is used to offset the amount of wages owed, as in the foregoing situation, then the value of the expenses must be agreed upon by both the employer and the employee.
c. How is Section 11.1 to be applied when employees receive "stand-by pay" pursuant to a collective agreement or company policy?
Stand-by pay and reporting pay are different and mutually exclusive benefits. When an employee is on stand-by status, receives a stand-by premium, and reports to work when called, he is not considered to have reported at the call of the employer, but rather pursuant to a pre-arranged stand-by agreement. Reporting pay would not be required.
|1. Employee is requested to come in to work where there are no regularly scheduled hours by a call or request from the supervisor, and reports for work||0 to 3||3 hours at regular rate of wages|
|2. Employee is called in to work on scheduled day off||0 to 3||3 hours at regular rate of wages|
|3. Employee works an 8-hour day, leaves the workplace and is called back to work||0||3 hours at regular rate of wages|
|1||3 hours at regular rate of wages|
|2||2 hours at time and a half (= 3 hours at regular rate of wages)|
|3||3 hours at time and a half|
|4. Any of the above scenarios||3 or more||Number of hours worked at applicable rate of wages|
|5a. Traffic reporter has two scheduled shifts per day: Morning shift (two hours)
Goes home after morning shift
|2||2 hours at regular rate of wages|
|5b. Traffic reporter has two scheduled shifts per day: Evening shift (two hours)||2||2 hours at regular rate of wages|
|5c. Traffic reporter has two scheduled shifts per day: Goes home after evening shift and is later called in and reports for an extra, non-scheduled shift (one hour)||1||3 hours at regular rate of wages
(Thus, the employee is paid a total of 7 hours for 5 hours of work)
|6. Pilot in non-scheduled air industry arrives at base, prepares for flight, flies short run, returns to base and goes home||2||3 hours at regular rate of wages|
|7. Pilot in non-scheduled air industry lives at remote base. Reports for work, prepares for flight, flies short run, returns to base and goes off duty||2||2 hours at regular rate of wages|
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