With summer fast approaching, many British Columbia employers are ramping up hiring to meet seasonal demand. At the same time, employers should be mindful of certain onboarding and other employment-related considerations that may arise.
Fixed Term Contracts
Employers may be considering fixed-term or temporary contracts for their summer hires. While these arrangements are common, employers should be aware of the common pitfalls of fixed-term employment contracts.
Consider the following example. Employer A hires Employee B for a four-month term. The contract sets out start and end dates and provides for automatic termination on the end date, without further notice or payment in lieu of notice to the employee. Employer A may believe it is adequately protected—until circumstances arise that require terminating Employee B’s employment before the end of the term. Without an enforceable termination provision permitting early termination, Employer A may be liable for the remainder of the fixed term.
Extensions beyond the initial term can also create unintended liability. If the employment relationship continues past the fixed end date, the contract may be deemed to have converted into an indefinite‑term contract. In that case, if Employer A later terminates Employee B’s employment, it could face liability for reasonable notice of termination at common law.
When drafting a fixed-term employment contract, employers should clearly define the start and end dates and include carefully worded termination provisions to avoid unintended liability when the employment relationship ends. Where an employer anticipates extensions to an initial term, it may be worthwhile to simply start with an indefinite-term contract with an enforceable termination provision.
Summer Hours
With longer daylight hours and increased activity, BC employers may be considering adjusting schedules during the summer months. However, employers must continue to comply with the requirements of the Employment Standards Act (the “ESA”). One key area of consideration is overtime.
In BC, non-exempt employees are entitled to both daily and weekly overtime. Daily overtime applies to hours worked in excess of eight in a day. Weekly overtime applies to hours worked in excess of forty in a week; however, only the first eight hours worked each day are counted toward the weekly total to avoid double-counting daily overtime.
Employers considering a compressed work week, such as Friday half-days, must be mindful of these obligations. If employees are working more than eight hours a day to accommodate a shorter day later in the week, daily overtime may be triggered even when total weekly hours remain unchanged. Entering into an averaging agreement for the summer period could allow compressed work weeks without overtime, but exercise caution when drafting an averaging agreement as they must comply with the specific requirements in the ESA to be enforceable.
Workplace Safety
Summer heatwaves mean that employees may be exposed to hazardous heat conditions in the workplace. Heat-related illnesses, such as heat stroke and heat exhaustion, can be extremely dangerous and develop quickly.
Employers should assess the potential for heat stress using recognized methods prescribed by WorkSafeBC, including the Humidex or other reliable tools that measure air temperature and relative humidity. Where a risk of heat stress is identified, employers are required to develop and implement a heat stress exposure control plan in accordance with applicable occupational health and safety guidelines.
Takeaways
- Carefully draft fixed-term contracts to address both early termination and end-of-term risks and consider whether an indefinite-term arrangement may be more appropriate.
- Continue complying with the ESA, including with respect to overtime and required breaks. We would be pleased to assist you with averaging agreements for the summer months.
- Assess any heat-related workplace safety concerns and ensure appropriate controls are considered and implemented.
By proactively addressing these issues, employers can better manage risk and ensure compliance while navigating the demands of the summer season.