As an employer in the Northwest Territories (NWT), it’s essential to stay informed about key labor regulations to ensure compliance and foster a fair workplace. Here are the main employment standards to keep in mind:
Key Labor Facts in Northwest Territories
1. Minimum Wage
As of September 1, 2024, the minimum wage in the Northwest Territories is $16.05 per hour. This rate applies to most employees, with specific rates for certain industries and positions.
2. Hours of Work and Overtime
- Standard Hours: The standard workday is 8 hours, and the standard workweek is 40 hours.
- Overtime Pay: Employees are entitled to overtime pay at 1.5 times their regular wage for hours worked beyond the standard hours. Employers and employees can agree to bank overtime hours to be taken as time off later.
3. Rest Periods
Employees must receive at least 30 minutes of rest (paid or unpaid) for every 5 consecutive hours of work.
4. General Holidays
The Northwest Territories recognizes 11 statutory holidays, including New Year’s Day, Good Friday, Victoria Day, National Indigenous Peoples Day, Canada Day, the first Monday in August, Labour Day, National Day for Truth and Reconciliation, Thanksgiving Day, Remembrance Day, and Christmas Day. Eligible employees are entitled to general holiday pay, which is calculated based on their average daily wage.
5. Vacation Entitlement
- Vacation Time: Employees earn 2 weeks of vacation after one year of employment and 3 weeks after five years.
- Vacation Pay: Vacation pay is calculated as a percentage of wages—4% for employees entitled to 2 weeks of vacation and 6% for those entitled to 3 weeks.
6. Termination Notice
Employers must provide written notice or pay in lieu thereof when terminating an employee, with the notice period varying based on the employee’s length of service.
Staying updated on these standards is essential for legal compliance and maintaining a positive work environment. For comprehensive information, refer to the Northwest Territories’ Employment Standards Act and related resources.