If you`re an employee who has been waiting for a collective agreement retroactive payment, 2018 might be your year. Many collective agreements include retroactive payments that are owed to employees for work completed in previous years. These payments can often come as a windfall to employees who have been waiting patiently for their union to negotiate a better deal for them.

What exactly are retroactive payments?

Retroactive payments are payments made to employees for work that they completed in previous years, but were not compensated for at the time. For example, if an employee was working under a collective agreement that expired in 2016, but the union did not negotiate a new agreement until 2018, any wage increases or benefits that were negotiated as part of the new agreement would be owed to the employee for the time they worked under the expired agreement.

Why are retroactive payments important?

Retroactive payments are important because they ensure that employees receive the maximum benefit of any new agreements negotiated by their union. Without retroactive payments, employees would only receive the increased wages and benefits negotiated in the new agreement from the date it was signed, rather than from the date their previous agreement expired.

How are retroactive payments calculated?

Retroactive payments are typically calculated based on the difference between the old and new collective agreements. For example, if an employee`s hourly rate was $25 under the old agreement and has now been increased to $30 under the new agreement, the employee would be owed $5 per hour for all hours worked during the time the old agreement was in effect.

When are retroactive payments typically paid?

Retroactive payments are typically paid shortly after a new collective agreement has been signed. However, the exact timing will depend on the terms of the agreement and the procedures in place for processing payments.

If you believe you are owed a retroactive payment, it`s important to speak with your union representative as soon as possible to find out when you can expect to receive your payment. In some cases, unions may have negotiated retroactive payments on behalf of employees, but those payments may be subject to certain conditions or restrictions, such as a minimum number of hours worked or eligibility requirements.

In conclusion, if you are an employee covered by a collective agreement, it`s important to understand how retroactive payments work and what your rights are under the agreement. While retroactive payments can take time to process, they can also provide valuable compensation for work that was completed in previous years. If you have any questions about collective agreement retroactive payments, be sure to speak with your union representative or HR department.