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Flexible vs. Standard Hours of Work Policies: What’s the Right Fit for Your Small Business?

Operating a small business in Canada often means wearing many hats—serving as an owner and manager and sometimes taking care of HR responsibilities. One aspect that can lead to uncertainty is creating work schedules for your staff. Should you adhere to the conventional 9-to-5 hours? Or should you provide more flexibility? The solution often depends on selecting the appropriate policy: Hours of Work Policy or a Flexible Hours of Work Policy


Let's simplify this so you can determine which option is most suitable for your business.


What is the Hours of Work Policy?

The Hours of Work Policy sets a fixed schedule for your employees. Everyone knows when their workday starts, when it ends, and what days they’re expected to be at work.

Typical Use:

  • Businesses with customer-facing roles like retail or hospitality.

  • Manufacturing, warehouse, or logistics operations that rely on consistent shift coverage.

  • Teams that work closely together and need predictable collaboration time.

Example:

"All full-time employees work Monday to Friday, 9:00 a.m. to 5:00 p.m., with a 1-hour unpaid lunch break."

Why It Works:

  • Easy to manage and enforce.

  • Supports structured workflows and consistent communication.

  • Useful in industries where timing is critical.


What Is a Flexible Hours of Work Policy?

A Flexible Hours of Work Policy gives employees more control over their start and end times—or even their workdays—as long as they fulfill their required hours.

Typical Use:

  • Remote or hybrid teams.

  • Creative roles like design, marketing, or writing.

  • Businesses that prioritize outcomes over clock-punching.

Example:

"Employees may start work anytime between 7:00 a.m. and 10:00 a.m., as long as they complete an 8-hour day and are present during core hours of 10:00 a.m. to 2:00 p.m."

Why It Works:

  • Boosts employee morale and work-life balance.

  • Helps attract and retain talent, especially millennials and Gen Z.

  • Can reduce lateness, absenteeism, and even burnout.


Key Differences at a Glance

Feature Standard Hours Policy Flexible Hours Policy
Start/End Time Fixed for all employees Varies by employee (within approved limits)
Best For Customer service, retail, logistics Remote teams, creative roles, tech companies
Management Style Structured and scheduled Trust-based and goal-oriented
Legislative Consideration Easy to monitor compliance Needs more tracking to ensure hours are met
Employee Control Low High

Which Policy Should You Use?

Here’s a quick way to decide:

Use a Hours of Work Policy if...

  • Your business needs coverage during specific hours.

  • You manage shifts or require in-person work.

  • Predictability is more important than flexibility.

Use a Flexible Hours Policy if...

  • You want to offer better work-life balance.

  • You manage a remote or hybrid workforce.

  • You're focused on output rather than time-at-desk.

And if you’re somewhere in between, that’s okay too! Many businesses use core hours (like 10–2) to strike a balance between flexibility and structure.


Overview

There’s no one-size-fits-all approach. Your decision should be based on the nature of your business, your team structure, and how you define productivity. Both policies can be effective—but clarity and consistency are key.

If you're unsure where to start, DirectiveHR offers ready-to-use templates for both policies. They’re fully customizable, legally compliant in Canada, and designed for busy business owners like you.


Explore Templates:

Make work work for everyone—on your time, your terms.