How should I be compensated for travel time?

How should I be compensated for travel time?

THE QUESTION

I am a junior accountant at a large firm in Toronto. I was recently placed on a new file with a client in Calgary who required in-person work at their offices. I fly out of Toronto on Sunday afternoon to start work there on Monday morning. My hours are 7:30am to 6:00pm and I am staying overnight in Calgary until Friday at 4pm when I will leave “early” to head to the airport and catch a flight home arriving at 2am in Saturday. I would then fly out again on Sunday afternoon. I received no additional compensation for these hours and travel. What am I entitled to?

THE FIRST ANSWER

Sophie Purnell, employment lawyer, Purnell Employment Law, Calgary

You may be entitled to travel allowances. Travel allowances are additional compensation provided to employees who are required to travel periodically as part of their job duties. The purpose of the allowance is to help employees with the time and costs associated with commuting. Employers are expected to cover reasonable expenses associated with your business travel, so be sure to keep a detailed record of your expenses.

The amount of travel allowances may vary depending on the distance between your usual place of work and the assigned place of work and may be adjusted to reflect market conditions. Check to see if your company has policies—written or informal—regarding business travel reimbursements. Companies with employees who travel frequently as part of their duties usually have policies regarding business travel compensation. Review your employment contract to determine if you are entitled to a business travel allowance. If your employer refuses to provide you with additional compensation, you may want to speak with an employment attorney about your options.

There are minimum standards employers must follow when it comes to overtime pay and hours worked. Generally, employees who work more than 44 hours per week are entitled to overtime pay. However, these minimum standards for overtime pay and hours of work do not apply to certain industries and jobs. In Ontario, for example, public accountants and public accounting students are exempt from overtime pay.

THE SECOND ANSWER

Balraj K. Dosanjh, employment lawyer, Cavalluzzo LLP, Toronto

In general, an employee is not entitled to be paid for time spent traveling to and from work. However, if an employer requires you to travel to a place other than your usual place of work for the purpose of work, all time spent traveling to and from that place is considered “work” time. Whether you are entitled to be paid for this travel time depends on the province’s statutory minimum standards rules and the terms of your employment contract. It’s important to note that certain occupations are exempt from minimum wage, hours and overtime rules (meaning you’re not required to be paid for every hour you work) under provincial law.

In Ontario, the Labor Standards Act exempts professionals working in “public accounting” from minimum wage, hours and overtime rules. You probably fall under this exception because “public accounting” means you have a CPA designation and serve more than one client, which it sounds like you do. Accordingly, you are not required to receive additional pay for travel time or overtime hours, unless your employment contract provides otherwise.

Your employment contract may govern travel time and overtime, and your employer must comply with its terms. For example, if your employment contract states that you must be paid for travel time or entitles you to receive overtime pay for hours worked over and above your normal work week, then your time spent traveling and overtime in the office in Calgary needs to be compensated. I also note that if the service to this client and the hours involved are a significant departure from your original position, you may be able to argue a fundamental breach of contract. I suggest you talk to a lawyer about this option.

Even if your employment contract doesn’t entitle you to travel or overtime pay, it’s a good idea to talk to your employer about the disruption to your personal life from frequent travel, as they may be willing to offer time off in lieu of pay and /or incentive payment. You can also request that your travel time be during the work week with correspondingly fewer hours in the Calgary office. Finally, your question doesn’t make it clear if you also pay travel expenses. Since you are only traveling for work, your employer must pay for travel and accommodation expenses.

Have a question for our experts? Email to [email protected] with “nine to five” in the subject line. Emails without the correct subject line may not be answered.

Leave a Comment

Your email address will not be published. Required fields are marked *