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Overtime Banks

Section 2-18 of The Saskatchewan Employment Act outlines the establishment of overtime banks (time banks), while the regulations set standards around the set up and operation of a bank.

An overtime bank is an agreement between the employer and employees that allows any overtime hours that an employee works to be banked rather than to be paid out. The banked time can be taken off with pay during regular working hours at some mutually agreed to later date.

For every hour of overtime worked, 1.5 hours must be banked.

All employees can request an overtime bank, including those working fewer than 30 hours per week.

Overtime Bank Agreements

All overtime bank agreements must be:

  • In writing;
  • Agreed to, and signed by, both employer and employee; and
  • Retained by the employer, with a copy going to the employee.

View the Time Bank Agreement Template for an example of what an overtime bank agreement could look like.

Overtime Bank Withdrawals

All hours taken from a bank must be taken during an employee’s regularly scheduled work hours, at a time or times agreed to by both parties. Where the parties cannot agree, time off may be scheduled by the employer. Any time off is paid at the employee’s hourly wage at the time taken from the bank. All banked time must be taken off within 12 months of the time being banked.

Any banked time not taken within a 12-month period must be paid out at the employee’s regular wage rate.

For example, if the employee’s fall harvest project did not require all the hours that were banked, the employee could ask the employer for some additional paid time off for some other purpose; or if that is not possible, could request that the overtime hours in the bank be paid out. Either way, any overtime hours in the bank after 12 months must be paid out by the employer.

Changing or Ending Agreements

The employer and employee cannot end or change the agreement without giving advance notice in writing. The notice must be at least one pay period in advance. If the employee or employer ends the agreement, the employee can be required to use some or all of the time in the bank during the notice period.

If the employer is laying off or terminating the employee’s employment, the employer cannot substitute banked time for the notice periods required under The Saskatchewan Employment Act.

For example, an employee and employer have set up an overtime bank. The employee decides to quit to go back to school. The Saskatchewan Employment Act requires that the employee give her employer at least two weeks’ notice of her resignation. The employee’s advance notice allows the employer to wind down the employee’s overtime bank by having her take regular work hours as paid time off during her notice period.

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