Special travel compensation is allowed

Release date: December 11, 2013

In the context of their duties, employees are often expected to travel all over the world. The collective agreement contains provisions pertaining to employees’ compensation during their travels. While acknowledging that the employer is in compliance with the collective agreement, the union lodged a grievance claiming that the employer was violating the provisions of the Act respecting Labour Standards, since he should have kept track of the hours during which employees were travelling and pay them based on their hourly rate. The employer argues that the employees are paid an annual salary and that travels are part of their normal working conditions. He adds that the hourly rate is not expected to be the same when employees are working and when they are travelling. According to the arbitrator, the law prescribes that employees are deemed to be at work during their work-related travels, but it says nothing about remuneration. The parties were therefore free to negotiate a special compensation package applicable to travels. The grievance was rejected.

Space Systems Engineers and Scientists Association (SSESA) v. MDA – Sainte-Anne-de-Bellevue Unit D.T.E. 2013T-754


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