Effective November 1st, 2020, changes to holiday pay in Alberta (as outlined in Bill 32 - Restoring Balance in Alberta’s Workplaces Act) introduces two new methods to calculate average daily wage.
Additionally, you no longer need to include vacation pay and holiday pay when determining the daily wage for holiday pay.
There are two settings to support the average daily wage calculation in Alberta.
Average Daily Wage of Last 28 Days
Average Daily Wage of Last 28 Days (Prior Pay Period)
Prior to Updating the Holiday Rule
Prior to updating your Alberta holiday pay rule, please:
Approve all time up to and including Thanksgiving in Maintain Time Data.
Ensure that the 9.44 Release is applied.
Determine whether you will continue to include holiday and vacation pay in the daily wage calculation.
Determine how you want to calculate the average daily wage for holidays. You can choose from the average of:
Four weeks immediately before the holiday
orFour weeks ending on the last day of the pay period before the holiday.
How to Update Daily Wage Calculation on Alberta Holiday Rules
Important Information
Before updating the holiday rules, approve all time up to and including Thanksgiving in Maintain Time Data. This will ensure that previously entered time is not affected by this change
Step 1: Open Holiday Rules in the Avanti Desktop Application.
By default, this can be found in Time & Attendance >> Holiday Rules.
Step 2: Select a Holiday used for employees in Alberta, then select Modify.
Step 3: On the Details tab, select one of the following for the Holiday pay rule:
Average Daily Wage of Last 28 Days: The holiday will be paid based on the average daily wage of the four weeks prior to the holiday.
Average Daily Wage of Last 28 Days (Prior Pay Period): The holiday will be paid based on the average daily wage of the four weeks ending on the last day of the pay period before the holiday.
Step 4: If you are removing holiday and vacation pay, deselect the all applicable earning codes in Earning codes included for holiday wage rate calculations.
Step 5: Select OK to close the Holiday Rule.
Step 6: Repeat Steps 2 - 5 for each Holiday Rule for Alberta employees.
Step 7: If you are removing vacation and holiday pay from the average daily wage calculation, please go to Additional Steps - Removing Vacation & Holiday Pay.
If you are continuing to include vacation and holiday pay in the average daily wage calculation, congratulations! Your Holiday Rules are now compliant for November 1st.
Bill 32 also introduces changes to the overtime pay for employees in Alberta. Go to Adjusting your Alberta Overtime Rule to 52 weeks for Bill 32 for more information on changing your Overtime Rules.
Additional Steps - Removing Vacation & Holiday Pay
Completing these steps will make vacation and holiday pay ineligible for holiday pay.
Step 1: Open Holiday Rules in the Avanti Desktop Application.
By default, this can be found in Time & Attendance >> Holiday Rules.
Step 2: Identify the ID of each Holiday Rule for Alberta employees. The IDs are required for Step 4.
Step 3: Open Program Options in the Avanti Desktop Application.
By default, this can be found in System Administration >> System Parameters.
Step 4: Search for Option IDs that start with Tc.CustomHolidayPayRule, followed by a Holiday Rule ID for Alberta employees.
Example: If your holiday rule ID for Alberta employees is AB PT, the program option would be Tc.CustomHolidayPayRule.AB PT.OverrideCodeList
If you have options with a holiday rule for Alberta employees, proceed to Step 5.
If you do not have any options for a holiday rule for Alberta employees, select Exit.
Great job! You have finished updating your Holiday Rules and are now taking advantage of the changes to the average daily wage calculation introduced with Bill 32 - Restoring Balance in Alberta’s Workplaces Act.
Step 5: Select the program option, then select Modify.
Step 6: If any earning codes for vacation or holiday pay are on the list, remove those earning codes.
Additional Information
Unsure which earning codes are for vacation and holiday pay? The full description of each earning can be found in Earning Codes.
By default, this can be found in Canadian Payroll >> Employer Payroll Tables.
Step 7: Select OK to save your changes
Step 8: Repeat Steps 4 - 7 for each program option setup for a holiday rule with Alberta employees.
Good job, your Holiday Rules are now taking advantage of the changes to the average daily wage calculation introduced with Bill 32 - Restoring Balance in Alberta’s Workplaces Act.
Bill 32 also introduces changes that extend the overtime averaging period to 52 weeks. Go to Adjusting your Alberta Overtime Averaging Period - Bill 32 for more information on updating your Overtime Rules.