Application
This Directive applies to represented employees of the public service who
have the Work Force Adjustment Directive listed as a National Joint Council
Directive in their collective agreements (see Appendix B, List of bargaining
agents subject to this directive) and for which Treasury Board is the employer
(departments or agencies listed in Schedules I and IV to the Financial
Administration Act, for which the Public Service Commission has the sole
authority to appoint). (revised April 1, 2005)
With the exception of those references to unions and the National Joint
Council, this Directive in its entirety will also apply to all employees
appointed on an indeterminate basis who are excluded or unrepresented. Any
grievances for these employees shall be dealt with under the normal departmental
grievance procedure.
This directive does not apply to employees to whom the Executive Employment
Transition policy or other directives on work force adjustment apply.
Unless explicitly specified, the provisions contained in Parts I to VI do not
apply to alternative delivery initiatives.
Collective agreement
With the exception of those provisions for which the Public Service
Commission (PSC) is responsible, this National Joint Council directive is deemed
to be part of the collective agreements between the parties, and employees are
to be afforded ready access to it.
Effective date
This directive is effective on December 6, 2001.
Grievance procedure
In cases of alleged misinterpretation or misapplication arising out of this directive, the grievance
procedure for all represented employees within the meaning of the Public
Service Labour Relations Act, will be in accordance with Section 14.0
of the National Joint Council By-laws. (revised April 1, 2005)
Notwithstanding any other provisions on presenting grievances under the
National Joint Council (NJC) grievance procedure, an affected, surplus or
laid-off employee, or one who has received a notice of termination, who feels
aggrieved by a department's decision in applying or interpreting this directive
in respect of his or her situation may grieve directly to the departmental
liaison officer of the department that made that decision.
If the matter is not resolved at this step to the grievor's satisfaction, the
grievor may refer the department's reply to the grievance directly to the
Administrative Committee in accordance with NJC by-laws and, with the bargaining
agent's approval, to adjudication.
The National Joint Council agrees to expedite the redress process at any
parties' request in cases of dispute when an employee has chosen or is deemed to
have chosen Option a), Twelve-month surplus priority period in which to secure a
reasonable job offer of Part VI of this directive.
Objectives
It is the policy of the Treasury Board to maximise employment opportunities
for indeterminate employees affected by work force adjustment situations,
primarily through ensuring that, wherever possible, alternative employment
opportunities are provided to them. This should not be construed as the
continuation of a specific position or job but rather as continued employment.
To this end, every indeterminate employee whose services will no longer be
required because of a work force adjustment situation and for whom the deputy
head knows or can predict employment availability will receive a guarantee of a
reasonable job offer within the public service. Those employees for whom the
deputy head cannot provide the guarantee will have access to transitional
employment arrangements (as per Part VI and VII).
Definitions
Accelerated lay-off (mise en disponibilité accélérée)
- occurs when a surplus employee makes a request to the deputy head, in
writing, to be laid off at an earlier date than that originally scheduled, and
the deputy head concurs. Lay-off entitlements begin on the actual date of
lay-off.
Affected employee (fonctionnaire touché) - is an
indeterminate employee who has been informed in writing that his or her services
may no longer be required because of a work force adjustment situation.
Alternation (échange de postes) - occurs when an
opting employee (not a surplus employee) who wishes to remain in the public
service exchanges positions with a non-affected employee (the alternate) willing
to leave the public service with a Transition Support Measure or with an
Education Allowance.
Alternative delivery initiative (diversification des
modes d'exécution) - is the transfer of any work, undertaking or business
of the public service to any body or corporation that is a separate employer or
that is outside the public service.
Appointing department (ministère d'accueil) - is a
department or agency which has agreed to appoint or consider for appointment
(either immediately or after retraining) a surplus or a laid-off person.
Deputy head (administrateur général) - has the same
meaning as in the definition of "Deputy Head" set out in section 2 of
the Public Service Employment Act, and also means his or her official
designate.
Education Allowance (indemnité d'étude) - is one of
the options provided to an indeterminate employee affected by normal work force
adjustment for whom the deputy head cannot guarantee a reasonable job offer. The
Education Allowance is a cash payment, equivalent to the Transitional Support
Measure (see Appendix C), plus a reimbursement of tuition from a recognised
learning institution, book and mandatory equipment costs, up to a maximum of
$8,000.00.
Guarantee of a reasonable job offer (garantie d'une offre
d'emploi raisonnable) - is a guarantee of an offer of indeterminate
employment within the public service provided by the deputy head to an
indeterminate employee who is affected by work force adjustment. Deputy heads
will be expected to provide a guarantee of a reasonable job offer to those
affected employees for whom they know or can predict employment availability in
the public service. Surplus employees in receipt of this guarantee will not have
access to the Options available in Part VI of this directive.
Home department (ministère d'attache) - is a
department or agency declaring an individual employee surplus.
Laid off person (personne mise en disponibilité) -
is a person who has been laid off pursuant to PSEA 29(1) and who still
retains a reappointment priority under PSEA 29(3).
Lay-off notice (avis de mise en disponibilité) - is
a written notice of lay-off to be given to a surplus employee at least one month
before the scheduled lay-off date. This period is included in the surplus
period.
Lay-off priority (priorité de mise en disponibilité) -
a person who has been laid off is entitled to a priority for appointment without
competition or appeal to a position in the public service for which, in the
opinion of the PSC, they are qualified. This priority is accorded for one year
following the lay-off date, pursuant to subsection 29(3) of the Public
Service Employment Act, or following the termination date, pursuant to
paragraph 11(2.01) of the Financial Administration Act.
Opting employee (fonctionnaire optant) - is an
indeterminate employee whose services will no longer be required because of a
work force adjustment situation and who has not received a guarantee of a
reasonable job offer from the deputy head and who has 120 days to consider the
Options of Part 6.3 of this directive.
Pay (rémunération) - has the same meaning as
"rate of pay" in the employee's collective agreement.
Priority administration system (système d'administration
des priorités) - is a system designed by the PSC to facilitate
appointments of individuals entitled to statutory and regulatory priorities.
Public Service (fonction publique) - means the
several positions in or under any department, agency, or other portion of the
public service of Canada specified in Schedules I and IV to the Financial
Administration Act (FAA), for which the PSC has the sole authority to
appoint. (revised April 1, 2005)
Reasonable job offer (offre d'emploi raisonnable) -
is an offer of indeterminate employment within the public service, normally at
an equivalent level but could include lower levels. Surplus employees must be
both trainable and mobile. Where practicable, a reasonable job offer shall be
within the employee's headquarters as defined in the Travel Directive. In
Alternative Delivery situations, a reasonable offer is one that meets the
criteria set out in Type 1 and Type 2 of Part VII of this directive. A
reasonable job offer is also an offer from a FAA Schedule V employer,
providing that: (revised April 1, 2005)
(a) The appointment is at a rate of pay and an attainable salary maximum not
less than the employee's current salary and attainable maximum that would be in
effect on the date of offer.
(b) It is a seamless transfer of all employee benefits including a
recognition of years of service for the definition of continuous employment and
accrual of benefits, including the transfer of sick leave credits, severance pay
and accumulated vacation leave credits.
Reinstatement priority (priorité de réintégration) -
is an appointment priority accorded by the PSC, pursuant to the Public
Service Employment Regulations, to certain individuals salary-protected
under this directive for the purpose of assisting such persons to re-attain an
appointment level equivalent to that from which they were declared surplus.
Relocation (réinstallation) - is the authorised
geographic move of a surplus employee or laid-off person from one place of duty
to another place of duty, beyond what, according to local custom, is a normal
commuting distance.
Relocation of work unit (réinstallation d'une unité de
travail) - is the authorised move of a work unit of any size to a place of
duty beyond what, according to local custom, is normal commuting distance from
the former work location and from the employee's current residence.
Retraining (recyclage) - is on-the-job training or
other training intended to enable affected employees, surplus employees and
laid-off persons to qualify for known or anticipated vacancies within the public
service.
Surplus employee (fonctionnaire excédentaire) - is
an indeterminate employee who has been formally declared surplus, in writing, by
his or her deputy head.
Surplus priority (priorité de fonctionnaire
excédentaire) - is an entitlement for a priority in appointment
accorded by the PSC, pursuant to the Public Service Employment Regulations,
to surplus employees to permit them to be appointed to other positions in the
public service without competition or right of appeal.
Surplus status (statut de fonctionnaire excédentaire) -
An indeterminate employee is in surplus status from the date he or she is
declared surplus until the date of lay-off, until he or she is indeterminately
appointed to another position, until his or her surplus status is rescinded, or
until the person resigns.
Transition Support Measure (mesure de soutien à la
transition) - is one of the options provided to an opting employee for whom
the deputy head cannot guarantee a reasonable job offer. The Transition Support
Measure is a cash payment based on the employee's years of service in the public
service, as per Annex C.
Twelve month surplus priority period in which to
secure a reasonable job offer (Priorité de fonctionnaire
excédentaire d'une durée de douze mois pour trouver 'une offre d'emploi
raisonnable) - is one of the options provided to an opting employee for whom
the deputy head cannot guarantee a reasonable job offer.
Work force adjustment (réaménagement des effectifs) -
is a situation that occurs when a deputy head decides that the services of one
or more indeterminate employees will no longer be required beyond a specified
date because of a lack of work, the discontinuance of a function, a relocation
in which the employee does not wish to relocate or an alternative delivery
initiative.
Monitoring
Departments shall retain central information on all cases occurring under
this directive, including the reasons for the action; the number, occupational
groups and levels of employees concerned; the dates of notice given; the number
of employees placed without retraining; the number of employees retrained
(including number of salary months used in such training); the levels of
positions to which employees are appointed and the cost of any salary
protection; and the number, types, and amounts of lump sums paid to employees.
This information will be used by the Treasury Board Secretariat to carry out
its periodic audits.
References
The primary references for the subject of Work Force Adjustment are as
follows:
Canada Labour Code, Part I.
Financial Administration Act, section 11.
Pay Rate Selection (Treasury Board Manual, Pay administration volume,
chapter 3).
Policy on termination of Employment in Alternative Delivery Situations
(Treasury Board Manual, Human Resources Volume, Chapter 1-13)
Public Service Employment Act, section 29.
Public Service Employment Regulations, sections 34, 35, 36, 37,
39 and 42.
Public Service Labour Relations Act, sections 79 and 81. (revised
April 1, 2005)
Public Service Superannuation Act, section 40.1.
Relocation Directive (Treasury Board Manual, Employee Services Volume,
Chapter 3-1).
Travel Directive (Treasury Board Manual, Employee Services Volume,
Chapter 1-1).
Enquiries
Enquiries about this directive should be referred to the respective
bargaining agent, or the responsible officers in departmental headquarters.
Responsible officers in departmental headquarters may, in turn, direct
questions regarding the application of this directive to the Human Resources
Management Group, Human Resources Branch, Treasury Board Secretariat.
Enquiries by employees pertaining to entitlements to a priority in
appointment or to their status in relation to the priority appointment process
should be directed to their departmental human resource advisors or to the
regional and district offices of the PSC responsible for their case. Responsible
officers in departmental headquarters seeking interpretations and guidance may
contact the Employment Equity and Priority Administration Division of the
Recruitment Programs and Priority Administration Directorate, Resourcing and
Learning Branch, Public Service Commission Canada.
1.1 Departments
1.1.1 Since indeterminate employees who are affected by work force adjustment
situations are not themselves responsible for such situations, it is the
responsibility of departments to ensure that they are treated equitably and,
whenever possible, given every reasonable opportunity to continue their careers
as public service employees.
1.1.2 Departments shall carry out effective human resource planning to
minimise the impact of work force adjustment situations on indeterminate
employees, on the department, and on the public service.
1.1.3 Departments shall establish work force adjustment committees, where
appropriate, to manage the work force adjustment situations within the
department.
1.1.4 Departments shall, as the home department, cooperate with the PSC and
appointing departments in joint efforts to redeploy or retrain for redeployment
to appointing departments departmental surplus employees and laid-off persons.
1.1.5 Departments shall establish systems to facilitate redeployment or
retraining of the department's affected employees, surplus employees, and
laid-off persons.
1.1.6 When a deputy head determines that the services of an employee are no
longer required beyond a specified date due to lack of work or discontinuance of
a function, the deputy head shall advise the employee, in writing, that his or
her services will no longer be required. A copy of this letter shall be sent
forthwith to the PSC.
Such a communication shall also indicate if the employee:
is being provided a guarantee of a reasonable job offer from the deputy head
and that the employee will be in surplus status from that date on,
or
is an opting employee and has access to the Options of Section 6.3 of this
directive because the employee is not in receipt of a guarantee of a
reasonable job offer from the deputy head.
Where applicable, the communication should also provide the information
relative to the employee's possible lay-off date.
1.1.7 Deputy heads will be expected to provide a guarantee of a reasonable
job offer for those employees subject to work force adjustment for whom they
know or can predict employment availability in the public service.
1.1.8 Where a deputy head cannot provide a guarantee of a reasonable job
offer, the deputy head will provide 120 days to consider the three Options
outlined in Part VI of this directive to all opting employees before a decision
is required of them. If the employee fails to select an option, the employee
will be deemed to have selected Option a), Twelve-month surplus priority
period in which to secure a reasonable job offer.
1.1.9 The deputy head shall make a determination to either provide a
guarantee of a reasonable job offer or access to the Options set out in 6.3 of
this directive, upon request of any indeterminate affected employee who can
demonstrate that his or her duties have already ceased to exist.
1.1.10 Departments shall send written notice to the PSC of the employee's
surplus status, and shall send to the PSC such details, forms, resumes, and
other material as the PSC may from time to time prescribe as necessary for it to
discharge its function.
1.1.11 Departments shall advise and consult with the bargaining agent
representatives as completely as possible regarding any work force adjustment
situation as soon as possible after the decision has been made and throughout
the process and will make available to the bargaining agent the name and work
location of affected employees.
1.1.12 The home department shall recommend in writing to the PSC whether the
employee is suitable for appointment. Where an employee is not considered
suitable for appointment, the department shall advise the employee and his or
her bargaining agent of that recommendation. The department shall send to the
employee a copy of the written communication to the Public Service Commission,
indicating the reasons for the recommendation together with any enclosures. The
department shall also advise the employee that he or she may make oral or
written submissions about the matter to the Public Service Commission before the
PSC makes its decision. Where the Public Service Commission does not accept the
department's recommendation, the department shall provide the surplus period
required under this directive, beginning on the date the department is advised
of the decision. The department shall so advise the employee.
1.1.13 The home department shall provide the PSC with a statement that it
would be prepared to appoint the surplus employee to a suitable position in the
department commensurate with his or her qualifications, if such a position were
available.
1.1.14 Departments shall provide that employee with a copy of this directive
simultaneous with the official notification to an employee to whom this
directive applies that he or she has become subject to work force adjustment.
1.1.15 Deputy heads shall apply this directive so as to keep actual
involuntary lay-offs to a minimum, and lay-offs shall normally only occur where
an individual has refused a reasonable job offer, or is not mobile, or cannot be
retrained within two years, or is laid-off at his or her own request.
1.1.16 Departments are responsible to counsel and advise their affected
employees on their opportunities of finding continuing employment in the public
service.
1.1.17 Appointment of surplus employees to alternative positions, whether
with or without retraining, shall normally be at a level equivalent to that
previously held by the employee, but this does not preclude appointment to a
lower level. Departments shall avoid appointment to a lower level except where
all other avenues have been exhausted.
1.1.18 Home departments shall appoint as many of their own surplus employees
or laid-off persons as possible, or identify alternative positions (both actual
and anticipated) for which individuals can be retrained.
1.1.19 Home departments shall relocate surplus employees and laid-off
individuals, if necessary.
1.1.20 Relocation of surplus employees or laid-off persons shall be
undertaken when the individuals indicate that they are willing to relocate and
relocation will enable their redeployment or reappointment, providing that
- there are no available priority persons, or priority persons with a
higher priority, qualified and interested in the position being filled; or
- no available local surplus employees or laid-off persons who are
interested and who could qualify with retraining.
1.1.21 The cost of travelling to interviews for possible appointments and of
relocation to the new location shall be borne by the employee's home department.
Such cost shall be consistent with the Travel and Relocation directives.
1.1.22 For the purposes of the Relocation directive, surplus employees and
laid-off persons who relocate under this directive shall be deemed to be
employees on employer-requested relocations. The general rule on minimum
distances for relocation applies.
1.1.23 For the purposes of the Travel directive, laid-off persons travelling
to interviews for possible reappointment to public service are deemed to be
"other persons travelling on government business".
1.1.24 For the priority period, home departments shall pay the salary costs,
and other authorised costs such as tuition, travel, relocation, and retraining
for surplus employees and laid-off persons, as provided for in the various
collective agreements and directives; all authorised costs of termination; and
salary protection upon lower-level appointment, unless the appointing department
is willing to absorb these costs in whole or in part.
1.1.25 Where a surplus employee is appointed by another department to a term
position, the home department is responsible for the costs above for one year
from the date of such appointment, after which the appointing department becomes
the new home department.
1.1.26 Departments shall protect the indeterminate status and surplus
priority of a surplus indeterminate employee appointed to a term position under
this directive.
1.1.27 Departments shall inform the PSC in a timely fashion of the results of
all referrals made to them under this directive, whether such referrals are for
immediate appointment, for retraining designed to qualify individuals for
appointment, or for anticipated vacancies.
1.1.28 Departments shall review the use of private temporary agency
personnel, employees appointed for a specified period (terms) and all other
non-indeterminate employees. Where practicable, departments shall not re-engage
such temporary agency personnel nor renew the employment of such employees
referred to above where such action would facilitate the appointment of surplus
employees or laid-off persons.
1.1.29 Nothing in the foregoing shall restrict the employer's right to engage
or appoint persons to meet short-term, non-recurring requirements. Surplus and
laid-off persons shall be given priority even for these short-term work
opportunities.
1.1.30 Departments may lay off an employee at a date earlier than originally
scheduled when the surplus employee requests them to do so in writing.
1.1.31 Departments, acting as appointing departments, shall cooperate with
the PSC and other departments in accepting, to the extent possible, affected,
surplus and laid-off persons, from other departments for appointment or
retraining.
1.1.32 Departments shall provide surplus employees with a lay-off notice at
least one month before the proposed lay-off date, if appointment efforts have
been unsuccessful.
1.1.33 When a surplus employee refuses a reasonable job offer, he or she
shall be subject to lay-off one month after the refusal, however not before six
months after the surplus declaration date. The provisions of 1.3.3 shall
continue to apply.
1.1.34 Departments are to presume that each employee wishes to be redeployed
unless the employee indicates the contrary in writing.
1.1.35 Departments shall inform and counsel affected and surplus employees as
early and as completely as possible and shall, in addition, assign a counsellor
to each opting and surplus employee and laid-off person to work with them
throughout the process. Such counselling is to include explanations and
assistance concerning:
(a) the work force adjustment situation and its effect on that individual;
(b) the work force adjustment directive;
(c) the PSC's Priority Administration System and how it works from the
employee's perspective (referrals, interviews or "boards", feedback to
the employee, follow-up by the PSC, how the employee can obtain job information
and prepare for an interview, etc.);
(d) preparation of a curriculum vitae or resume;
(e) preparation for an interview with the PSC;
(f) the employee's rights and obligations;
(g) the employee's current situation (e.g. pay, benefits such as severance
pay and superannuation, classification, language rights, years of service);
(h) alternatives that might be available to the employee (alternation,
appointment, relocation, retraining, lower-level employment, term employment,
retirement including possibility of waiver of penalty if entitled to an annual
allowance, Transition Support Measure, Education Allowance, resignation,
accelerated lay-off);
(i) the likelihood that the employee will be successfully appointed;
(j) the meaning of a guarantee of reasonable job offer, a Twelve-month
surplus priority period in which to secure a reasonable job offer, a Transition
Support Measure, an Education Allowance;
(k) the Human Resources Centres and their services (including a
recommendation that the employee register with the nearest office as soon as
possible);
(l) preparation for interviews with prospective employers;
(m) repeat counselling as long as the individual is entitled to a staffing
priority and has not been appointed; and
(n) advising the employee that refusal of a reasonable job offer will
jeopardize both chances for retraining and overall employment continuity.
1.1.36 Home departments shall ensure that, when it is required to facilitate
appointment, a retraining plan is prepared and agreed to in writing by
themselves, the employee and the appointing department.
1.1.37 Severance pay and other benefits flowing from other clauses in
collective agreements are separate from, and in addition to, those in this
directive.
1.1.38 Any surplus employee who resigns under this directive shall be deemed,
for the purposes of severance pay and retroactive remuneration, to be
involuntarily laid off on the day as of which the deputy head accepts in writing
the employee's resignation.
1.2 The Treasury Board Secretariat
1.2.1 It is the responsibility of the Treasury Board Secretariat to:
(a) investigate and seek to resolve situations referred by the PSC or other
parties, and
(b) consider departmental requests for retraining resources.
1.3 The Public Service Commission
1.3.1 The PSC shall establish and modify staffing policies and procedures to
ensure the most effective and efficient means of maximizing the redeployment of
surplus employees and the appointment of laid-off persons to positions in the
public service.
1.3.2 The PSC shall temporarily restrict or suspend any authority delegated
to deputy heads to make appointments in specified occupational groups when such
action is necessary.
1.3.3 The PSC shall actively market surplus employees and laid-off persons to
all departments unless the individuals have advised the PSC in writing that they
are not available for appointment.
1.3.4 The PSC shall advise the Treasury Board Secretariat when departments
fail to comply in good faith with this directive and/or to cooperate with the
PSC in redeployment, retraining, or appointment activities.
1.3.5 The PSC shall determine, to the extent possible, the occupations in
which there are skill shortages for which surplus employees or laid-off persons
could be retrained, and advise departments accordingly.
1.3.6 The PSC shall provide surplus and laid-off individuals with counselling
on their work force adjustment situation and its impact on them during their
priority entitlement.
1.3.7 The PSC shall provide information directly to bargaining agents on the
numbers and status of their members who are in the Priority Administration
System and, on a service-wide basis, through reports to the National Joint
Council's Work Force Adjustment Committee.
1.3.8 The Public Service Commission shall decide whether employees are
suitable for appointment. Where a deputy head recommends that an employee is not
suitable, the PSC shall, after considering such a recommendation, and
representations of the employee or his or her representative, advise the deputy
head, the employee, and his or her representative of its decision whether the
employee is entitled to surplus and lay-off priority and the reasons for the
decision. The PSC shall also inform the bargaining agent of its decision.
1.3.9 The PSC shall, wherever possible, ensure that reinstatement priority is
given to all employees who are subject to salary protection.
1.3.10 While the responsibility for retraining lies with the home department,
the PSC is responsible for making the appropriate referrals and may recommend
retraining where it would facilitate appointment, and the appointing department
is responsible for considering retraining the individual and for justifying a
decision not to retrain.
1.3.11 The PSC shall inform, in a routine and timely manner, a surplus
employee or laid-off person, his or her home department and a representative of
his or her bargaining agent, when he or she has been referred to a department
for consideration but will not be offered the position. The PSC shall include
full details of why he or she will not be appointed to or retrained for that
position.
1.4 Employees
1.4.1 Employees have the right to be represented by their bargaining agents
in the application of this directive.
1.4.2 Employees who are directly affected by work force adjustment situations
and who receive a guarantee of a reasonable job offer, or who opt, or are deemed
to have opted, for Option a) of Part VI of this directive are responsible for:
(a) actively seeking alternative employment in co-operation with their
departments and the PSC, unless they have advised the department and the PSC, in
writing, that they are not available for appointment;
(b) seeking information about their entitlements and obligations;
(c) providing timely information to the home department and to the PSC to
assist them in their appointment activities (including curriculum vitae or
resumes);
(d) ensuring that they can be easily contacted by the PSC and appointing
departments, and attending appointments related to referrals;
(e) seriously considering job opportunities presented to them (referrals
within the home department, referrals from the PSC, and job offers made by
departments), including retraining and relocation possibilities, specified
period appointments and lower-level appointments.
1.4.3 Opting employees are responsible for:
(a) considering the Options of Part VI of this directive;
(b) communicating their choice of Options, in writing, to their manager no
later than 120 days after being declared opting.
1.5 National Joint Council Work Force Adjustment Committee
1.5.1 The terms of reference of this committee are to review and, where
necessary, to recommend to the National Joint Council, changes to the Work Force
Adjustment Directive, and to provide interpretation of the intent of the
directive upon request.
2.1 Department
2.1.1 As already mentioned in section 1.1.11, departments shall advise and
consult with the bargaining agent representatives as completely possible
regarding any work force adjustment situation as soon as possible after the
decision has been made and throughout the process and will make available to the
bargaining agent the name and work location of affected employees.
2.1.2 In any work force adjustment situation which is likely to involve ten
or more indeterminate employees covered by this directive, the department
concerned shall notify the Director, Human Resources Management Group, Human
Resources Management Division, Human Resources Branch, Treasury Board
Secretariat, in confidence, at the earliest possible date and under no
circumstances less than 96 hours before the situation is announced. The
department shall send a copy of the advice to the Director General, Recruitment
Programs and Priority Administration Directorate, Resourcing and Learning
Branch, Public Service Commission.
2.2 Treasury Board Secretariat
2.2.1 Upon notification by the department concerned in 2.1 above, and under
no circumstances less than 48 hours before the situation is announced, the
Director, Human Resources Management Group, Human Resources Branch, Treasury
Board Secretariat shall inform, in writing and in confidence, the chief
executive officer of each bargaining agent that has members involved. This
information is to include the identity and location of the work unit(s)
involved; the expected date of the announcement; the anticipated timing of the
situation; and the numbers of employees, by group and level, who will be
affected.
3.1 General
3.1.1 In cases where a work unit is to be relocated, departments shall
provide all employees whose positions are to be relocated with the opportunity
to choose whether they wish to move with the position or be treated as if they
were subject to a work force adjustment situation.
3.1.2 Following written notification, employees must indicate, within a
period of six months, their intention to move. If the employee's intention is
not to move with the relocated position, the Deputy head, after having
considered relevant factors, can either provide the employee with a guarantee of
a reasonable job offer or access to the Options set out in section 6.3 of this
directive.
3.1.3 Employees relocating with their work units shall be treated in
accordance with the provisions of 1.1.19 to 1.1.23.
3.1.4 Although departments will endeavour to respect employee location
preferences, nothing precludes the department from offering the relocated
position to employees in receipt of a guarantee of a reasonable job offer from
their deputy heads, after having spent as much time as operations permit looking
for a reasonable job offer in the employee's location preference area.
3.1.5 Employees who are not in receipt of a guarantee of a reasonable job
offer shall become opting employees and have access to the Options set out in
Part VI of this directive.
4.1 General
4.1.1 To facilitate the redeployment of affected employees, surplus
employees, and laid-off persons, departments shall make every reasonable effort
to retrain such persons for:
(a) existing vacancies, or
(b) anticipated vacancies identified by management.
4.1.2 The PSC and departments shall be responsible for identifying situations
where retraining can facilitate the appointment of surplus employees and
laid-off persons, and shall cooperate in such efforts.
4.1.3 Subject to the provisions of 4.1.2, the deputy head of the home
department shall approve up to two years of retraining.
4.2 Surplus employees
4.2.1 A surplus employee is eligible for retraining providing:
(a) retraining is needed to facilitate the appointment of the individual to a
specific vacant position or will enable the individual to qualify for
anticipated vacancies in occupations or locations where there is a shortage of
qualified candidates; and
(b) there are no other available priority persons who qualify for the
position.
4.2.2 The home department is responsible for ensuring that an appropriate
retraining plan is prepared and is agreed to in writing by the employee and the
delegated officers of the home and appointing departments.
4.2.3 Once a retraining plan has been initiated, its continuation and
completion are subject to satisfactory performance by the employee.
4.2.4 While on retraining, a surplus employee continues to be employed by the
home department and is entitled to be paid in accordance with his or her current
appointment, unless the appointing department is willing to appoint the employee
indeterminately, conditional on successful completion of retraining, in which
case the retraining plan shall be included in the letter of offer.
4.2.5 When a retraining plan has been approved and the surplus employee
continues to be employed by the home department, the proposed lay-off date shall
be extended to the end of the retraining period, subject to 4.2.3.
4.2.6 An employee unsuccessful in retraining may be laid off at the end of
the surplus period, provided that the employer has been unsuccessful in making
the employee a reasonable job offer.
4.2.7 In addition to all other rights and benefits granted pursuant to this
section, an employee who is guaranteed a reasonable job offer, is also
guaranteed, subject to the employee's willingness to relocate, training to
prepare the surplus employee for appointment to a position pursuant to section
4.1.1, such training to continue for one year or until the date of appointment
to another position, whichever comes first. Appointment to this position is
subject to successful completion of the training.
4.3 Laid-off persons
4.3.1 A laid-off person shall be eligible for retraining providing:
(a) retraining is needed to facilitate the appointment of the individual to a
specific vacant position;
(b) the individual meets the minimum requirements set out in the relevant
Selection Standard for appointment to the group concerned;
(c) there are no other available persons with a priority who qualify for the
position; and
(d) the appointing department cannot justify a decision not to retrain the
individual.
4.3.2 When an individual is offered an appointment conditional on successful
completion of retraining, a retraining plan reviewed by the PSC shall be
included in the letter of offer. If the individual accepts the conditional
offer, he or she will be appointed on an indeterminate basis to the full level
of the position after having successfully completed training and being assessed
as qualified for the position. When an individual accepts an appointment to a
position with a lower maximum rate of pay than the position from which he or she
was laid-off, the employee will be salary protected in accordance with
Part V.
5.1 Lower-level position
5.1.1 Surplus employees and laid-off persons appointed to a lower-level
position under this directive shall have their salary and pay equity
equalization payments, if any, protected in accordance with the salary
protection provisions of their collective agreement, or, in the absence of such
provisions, the appropriate provisions of the Regulations Respecting Pay on
Reclassification or Conversion.
5.1.2 Employees whose salary is protected pursuant to section 5.1.1. will
continue to benefit from salary protection until such time as they are appointed
or deployed into a position with a maximum rate of pay that is equal to or
higher than the maximum rate of pay of the position from which they were
declared surplus or laid off.
6.1 General
6.1.1 Deputy heads will be expected to provide a guarantee of a reasonable
job offer for those affected employees for whom they know or can predict
employment availability. A Deputy Head who cannot provide such a guarantee shall
provide his or her reasons in writing, if requested by the employee. Employees
in receipt of this guarantee would not have access to the choice of Options
below.
6.1.2 Employees who are not in receipt of a guarantee of a reasonable job
offer from their deputy head have 120 days to consider the three Options below
before a decision is required of them.
6.1.3 The opting employee must choose, in writing, one of the three Options
of section 6.3 of this directive within the 120-day window. The employee cannot
change Options once having made a written choice.
6.1.4 If the employee fails to select an Option, the employee will be deemed
to have selected Option a), Twelve-month surplus priority period in which to
secure a reasonable job offer at the end of the 120-day window.
6.1.5 If a reasonable job offer which does not require a relocation is made
at any time during the 120-day opting period and prior to the written acceptance
of the Transition Support Measure or the Education Allowance Option, the
employee is ineligible for the TSM or the Education Allowance.
6.2 Alternation
6.2.1 All departments must participate in the alternation process.
6.2.2 An alternation occurs when an opting employee who wishes to remain in
the public service exchanges positions with a non-affected employee (the
alternate) willing to leave the public service under the terms of Part VI of
this directive.
6.2.3 Only an opting employee, not a surplus one, may alternate into an
indeterminate position that remains in the public service.
6.2.4 An indeterminate employee wishing to leave the public service may
express an interest in alternating with an opting employee. Management will
decide, however, whether a proposed alternation will result in retaining the
skills required to meet the ongoing needs of the position and the public
service.
6.2.5 An alternation must permanently eliminate a function or a position.
6.2.6 The opting employee moving into the unaffected position must meet the
requirements of the position, including language requirements. The alternate
moving into the opting position must meet the requirements of the position,
except if the alternate will not be performing the duties of the position and
the alternate will be struck off strength within five days of the alternation.
6.2.7 An alternation should normally occur between employees at the same
group and level. When the two positions are not the same group and level,
alternation can still occur when the positions can be considered equivalent.
They are considered equivalent when the maximum rate of pay for the higher paid
position is no more than six-per-cent higher than the maximum rate of pay for
the lower paid position.
6.2.8 An alternation must occur on a given date, i.e. two employees directly
exchange positions on the same day. There is no provision in alternation for a
"domino" effect or for "future considerations".
6.3 Options
6.3.1 Only opting employees who are not in receipt of the guarantee of a
reasonable job offer from the deputy head will have access to the choice of
Options below:
(a)
(i) Twelve-month surplus priority period in which to secure a reasonable
job offer is time-limited. Should a reasonable job offer not be made within a
period of twelve months, the employee will be laid off in accordance with the Public
Service Employment Act. Employees who choose or are deemed to have chosen
this Option are surplus employees.
(ii) At the request of the employee, this twelve (12) month surplus
priority period shall be extended by the unused portion of the 120-day opting
period referred to in 6.1.2 which remains once the employee has selected in
writing option (a).
(iii) When a surplus employee who has chosen, or who is deemed to have
chosen, Option a) offers to resign before the end of the twelve-month surplus
priority period, the deputy head may authorise a lump-sum payment equal to the
surplus employee's regular pay for the balance of the surplus period, up to a
maximum of six months. The amount of the lump sum payment for the pay in lieu
cannot exceed the maximum of that which he or she would have received had they
chosen Option b), the Transition Support Measure.
(iv) Departments will make every reasonable effort to market a surplus
employee and the Employer will ask the Public Service Commission to make every
reasonable effort to market a surplus employee within the employee's surplus
period within his or her preferred area of mobility.
or
(b) Transition Support Measure (TSM) is a cash payment, based on the
employee's years of service in the public service (see Apendix C) made to an
opting employee. Employees choosing this Option must resign but will be
considered to be laid-off for purposes of severance pay.
or
(c) Education allowance is a Transitional Support Measure (see Option b)
above) plus an amount of not more than $8,000 for reimbursement of receipted
expenses of an opting employee for tuition from a learning institution and costs
of books and mandatory equipment. Employees choosing Option c) could either:
(i) resign from the public service but be considered to be laid-off for
severance pay purposes on the date of their departure;
or
(ii) Delay their departure date and go on leave without pay for a maximum
period of two years, while attending the learning institution. The TSM shall
be paid in one or two lump-sum amounts over a maximum two-year period. During
this period, employees could continue to be public service benefit plan
members and contribute both employer and employee share to the benefits plans
and the Public Service Superannuation Plan. At the end of the two-year
leave without pay period, unless the employee has found alternate employment
in the public service, the employee will be laid off in accordance with the Public
Service Employment Act.
6.3.2 Management will establish the departure date of opting employees who
choose Option b) or Option c) above.
6.3.3 The TSM, pay in lieu of unfulfilled surplus period and the Education
Allowance cannot be combined with any other payment under the Work Force
Adjustment Directive.
6.3.4 In the cases of: pay in lieu of unfulfilled surplus period, Option b)
and c)i), the employee relinquishes any priority rights for reappointment upon
acceptance of his or her resignation.
6.3.5 Employees choosing Option c)ii) who have not provided their department
with a proof of registration from a learning institution 12 months after
starting their leave without pay period will be deemed to have resigned from the
public service, and be considered to be laid-off for purposes of severance pay.
6.3.6 All opting employees will be entitled to up to $400.00 for financial
planning advice.
6.3.7 An opting employee who has received pay in lieu of unfulfilled surplus
period, a TSM or an Education Allowance and is re-appointed to that portion of
the public service of Canada specified from time to time in Schedules I and IV
to the Financial Administration Act shall reimburse the Receiver General
for Canada by an amount corresponding to the period from the effective date of
such re-appointment or hiring, to the end of the original period for which the
TSM or Education Allowance was paid. (revised April 1, 2005)
6.3.8 Notwithstanding section 6.3.7, an opting employee who has received an
Education Allowance will not be required to reimburse tuition expenses, costs of
books and mandatory equipment, for which he or she cannot get a refund.
6.3.9 The deputy head shall ensure that pay in lieu of unfulfilled surplus
period is only authorised where the employee's work can be discontinued on the
resignation date and no additional costs will be incurred in having the work
done in any other way during that period.
6.3.10 If a surplus employee who has chosen, or is deemed to have chosen,
Option a) refuses a reasonable job offer at any time during the twelve-month
surplus priority period, the employee is ineligible for pay in lieu of
unfulfilled surplus period.
6.3.11 Approval of pay in lieu of unfulfilled surplus period is at the
discretion of management, but shall not be unreasonably denied.
6.4 Retention payment
6.4.1 There are three situations in which an employee may be eligible to
receive a retention payment. These are total facility closures, relocation of
work units and alternative delivery initiatives.
6.4.2 All employees accepting retention payments must agree to leave the
public service without priority rights.
6.4.3 An individual who has received a retention payment and, as applicable, is
either reappointed to that portion of the public service of Canada specified
from time to time in Schedules I and IV to the Financial
Administration Act, or is hired by the new employer within the six
months immediately following his or her resignation, shall reimburse the
Receiver General for Canada by an amount corresponding to the period from the
effective date of such re-appointment or hiring, to the end of the original
period for which the lump sum was paid. (revised April 1, 2005)
6.4.4 The provisions of 6.4.5 shall apply in total facility closures where
public service jobs are to cease, and:
(a) such jobs are in remote areas of the country, or
(b) retraining and relocation costs are prohibitive, or
(c) prospects of reasonable alternative local employment (whether within or
outside the public service) are poor.
6.4.5 Subject to 6.4.4, the deputy head shall pay to each employee who is
asked to remain until closure of the work unit and offers a resignation from the
public service to take effect on that closure date, a sum equivalent to six
months' pay payable upon the day on which the departmental operation ceases,
provided the employee has not separated prematurely.
6.4.6 The provisions of 6.4.7 shall apply in relocation of work units where
public service work units:
(a) are being relocated, and
(b) when the deputy head of the home department decides that, in comparison
to other options, it is preferable that certain employees be encouraged to stay
in their jobs until the day of workplace relocation, and
(c) where the employee has opted not to relocate with the function.
6.4.7 Subject to 6.4.6, the deputy head shall pay to each employee who is
asked to remain until the relocation of the work unit and offers a resignation
from the public service to take effect on the relocation date, a sum equivalent
to six months' pay payable upon the day on which the departmental operation
relocates, provided the employee has not separated prematurely.
6.4.8 The provisions of 6.4.9 shall apply in alternative delivery
initiatives:
(a) where the public service work units are affected by alternative delivery
initiatives;
(b) when the deputy head of the home department decides that, compared to
other options, it is preferable that certain employees be encouraged to stay in
their jobs until the day of the transfer to the new employer; and
(c) where the employee has not received a job offer from the new employer or
has received an offer and did not accept it.
6.4.9 Subject to 6.4.8, the deputy head shall pay to each employee who is
asked to remain until the transfer date and who offers a resignation from the
public service to take effect on the transfer date, a sum equivalent to six
months pay payable upon the transfer date, provided the employee has not
separated prematurely.
Preamble
The administration of the provisions of this part will be guided by the
following principles:
(a) fair and reasonable treatment of employees;
(b) value for money and affordability; and
(c) maximization of employment opportunities for employees.
7.1 Definitions
For the purposes of this part, an alternative delivery initiative
(diversification des modes d'exécution) is the transfer of any work,
undertaking or business of the public service to any body or corporation that is
a separate employer or that is outside the public service;
For the purposes of this part, a reasonable job offer (offre
d'emploi raisonnable) is an offer of employment received from a new employer
in the case of a Type 1 or Type 2 transitional employment arrangement, as
determined in accordance with section 7.2.2;
For the purposes of this part, a termination of employment (licenciement
du fonctionnaire) is the termination of employment referred to in paragraph
11(2)(g.1) of the Financial Administration Act (FAA).
7.2 General
Departments will, as soon as possible after the decision is made to proceed
with an ASD initiative, and if possible, not less that 180 days prior to the
date of transfer, provide notice to the Bargaining Agents.
The notice to the Bargaining Agents will include: 1) the program being
considered for ASD, 2) the reason for the ASD and 3) the type of approach
anticipated for the initiative.
In cases of ASD initiatives, the parties will conduct meaningful consultation
on human resource issues related to the ASD initiative in order to provide
information to the employee which will assist him/her in deciding on whether or
not to accept the job offer.
7.2.1 The provisions of this Part apply only in the case of alternative
delivery initiatives and are in exception to other provisions of this directive.
Employees who are affected by alternative delivery initiatives and who receive
job offers from the new employer shall be treated in accordance with the
provisions of this part and, only where specifically indicated will other
provisions of this directive apply to them.
7.2.2 There are three types of transitional employment arrangements resulting
from alternative delivery initiatives:
(a) Type 1 (Full Continuity)
Type 1 arrangements meet all of the following criteria:
(i) legislated successor rights apply. Specific conditions for successor
rights applications will be determined by the labour legislation governing the
new employer;
(ii) the Public Service Terms and Conditions of Employment Regulations,
the terms of the collective agreement referred to therein and/or the
applicable compensation plan will continue to apply to unrepresented and
excluded employees until modified by the new employer;
(iii) recognition of continuous employment in the public service, as
defined in the Public Service Terms and Conditions of Employment
Regulations, for purposes of determining the employee's entitlements under
the collective agreement continued due to the application of successor rights;
(iv) pension arrangements according to the Statement of Pension Principles
set out in Appendix A, or, in cases where the test of reasonableness set out
in that Statement is not met, payment of a lump-sum to employees pursuant to
section 7.7.3;
(v) transitional employment guarantee: a two-year minimum employment
guarantee with the new employer;
(vi) coverage in each of the following core benefits: health benefits, long
term disability insurance (LTDI) and dental plan;
(vii) short-term disability bridging: recognition of the employee's earned
but unused sick leave credits up to maximum of the new employer's LTDI waiting
period.
(b) Type 2 (Substantial Continuity)
Type 2 arrangements meet all of the following criteria:
(i) the average new hourly salary offered by the new employer (= rate
of pay + equal pay adjustments + supervisory differential) for the group
moving is 85 per cent or greater of the group's current federal hourly
remuneration (= pay + equal pay adjustments + supervisory differential),
when the hours of work are the same;
(ii) the average annual salary of the new employer (= rate of pay +
equal pay adjustments + supervisory differential) for the group moving is 85
per cent or greater of federal annual remuneration (= per cent or greater
of federal annual remuneration (= pay + equal pay adjustments +
supervisory differential), when the hours of work are different;
(iii) pension arrangements according to the Statement of Pension Principles
as set out in Appendix A, or in cases where the test of reasonableness set out
in that Statement is not met, payment of a lump-sum to employees pursuant to
section 7.7.3;
(iv) transitional employment guarantee: employment tenure equivalent to
that of the permanent work force in receiving organizations or a two-year
minimum employment guarantee;
(v) coverage in each area of the following core benefits: health benefits,
long-term disability insurance (LTDI) and dental plan;
(vi) short-term disability arrangement.
(c) Type 3 (Lesser Continuity)
A Type 3 arrangement is any alternative delivery initiative that does not
meet the criteria applying in Type 1 and 2 transitional employment arrangements.
7.2.3 For Type 1 and Type 2 transitional employment arrangements, the offer
of employment from the new employer will be deemed to constitute a reasonable
job offer for purposes of this part.
7.2.4 For Type 3 transitional employment arrangements, an offer of employment
from the new employer will not be deemed to constitute a reasonable job offer
for purposes of this part.
7.3 Responsibilities
7.3.1 Deputy heads will be responsible for deciding, after considering the
criteria set out above, which of the Types applies in the case of particular
alternative delivery initiatives.
7.3.2 Employees directly affected by alternative delivery initiatives are
responsible for seriously considering job offers made by new employers and
advising the home department of their decision within the allowed period.
7.4 Notice of alternative delivery initiatives
7.4.1 Where alternative delivery initiatives are being undertaken,
departments shall provide written notice to all employees offered employment by
the new employer, giving them the opportunity to choose whether they wish to
accept the offer.
7.4.2 Following written notification, employees must indicate within a period
of 60 days their intention to accept the employment offer, except in the case of
Type 3 arrangements, where home departments may specify a period shorter than 60
days, but not less than 30 days.
7.5 Job offers from new employers
7.5.1 Employees subject to this directive (see Application) and who do not
accept the reasonable job offer from the new employer in the case of Type 1 or 2
transitional employment arrangements will be given four months notice of
termination of employment and their employment will be terminated at the end of
that period or on a mutually agreed upon date before the end of the four month
notice period except where the employee was unaware of the offer or incapable of
indicating an acceptance of the offer as provided for in subsection 11(2.02) of
the Financial Administration Act (FAA).
7.5.2 The deputy head may extend the notice of termination period for
operational reasons, but no such extended period may end later than the date of
the transfer to the new employer.
7.5.3 Employees who do not accept a job offer from the new employer in the
case of Type 3 transitional employment arrangements may be declared opting or
surplus by the deputy head in accordance with the provisions of the other parts
of this directive. For greater certainty, those who are declared surplus will be
subject to the provisions of section 29 of the Public Service Employment Act
(PSEA) and section 39 of the Public Service Employment Regulations
(PSER).
7.5.4 Employees who accept a job offer from the new employer in the case of
any alternative delivery initiative will have their employment terminated on the
date on which the transfer becomes effective, or on another date that may be
designated by the home department for operational reasons provided that this
does not create a break in continuous service between the public service and the
new employer.
7.6 Application of other provisions of the directive
7.6.1 For greater certainty, the provisions of Part II, Official
Notification, and section 6.4, Retention Payment, will apply in the case of an
employee who refuses an offer of employment in the case of a Type 1 or 2
transitional employment arrangement. A payment under section 6.4 may not be
combined with a payment under the other section.
7.7 Lump-sum payments and salary top-up allowances
7.7.1 Employees who are subject to this directive (see Application) and who
accept the offer of employment from the new employer in the case of Type 2
transitional employment arrangements will receive a sum equivalent to three
months pay, payable upon the day on which the departmental work or function is
transferred to the new employer. The home department will also pay these
employees an 18-month salary top-up allowance equivalent to the difference
between the remuneration applicable to their public service position and the
salary applicable to their position with the new employer. This allowance will
be paid as a lump-sum, payable on the day on which the departmental work or
function is transferred to the new employer.
7.7.2 In the case of individuals who accept an offer of employment from the
new employer in the case of a Type 2 arrangement whose new hourly or annual
salary falls below 80 per cent of their former federal hourly or annual
remuneration, departments will pay an additional six months of salary top-up
allowance for a total of 24-months under this section and section 7.7.1. The
salary top-up allowance equivalent to the difference between the remuneration
applicable to their public service position and the salary applicable to their
position with the new employer will be paid as a lump-sum payable on the day on
which the departmental work or function is transferred to the new employer.
7.7.3 Employees who accept the reasonable job offer from the successor
employer in the case of a Type 1 or Type 2 transitional employment arrangement
where the test of reasonableness referred to in the Statement of Pension
Principles set out in Annex A is not met, that is, where the actuarial value
(cost) of the new employer's pension arrangements are less than 6.5 per cent of
pensionable payroll (excluding the employer's costs related to the
administration of the plan) will receive a sum equivalent to three months pay,
payable on the day on which the departmental work or function is transferred to
the new employer.
7.7.4 Employees who accept an offer of employment from the new employer in
the case of Type 3 transitional employment arrangements will receive a sum
equivalent to six months pay payable on the day on which the departmental work
or function is transferred to the new employer. The home department will also
pay these employees a 12-month salary top-up allowance equivalent to the
difference between the remuneration applicable to their public service position
and the salary applicable to their position with the new employer. The allowance
will be paid as a lump-sum, payable on the day on which the departmental work or
function is transferred to the new employer. The total of the lump-sum payment
and the salary top-up allowance provided under this section will not exceed an
amount equivalent to one year's pay.
7.7.5 For the purposes of 7.7.1, 7.7.2 and 7.7.4, the term
"remuneration" includes and is limited to salary plus equal pay
adjustments, if any, and supervisory differential, if any.
7.8 Reimbursement
7.8.1 An individual who receives a lump-sum payment and salary top-up
allowance pursuant to subsection 7.7.1, 7.7.2, 7.7.3 or 7.7.4 and who is
reappointed to that portion of the public service of Canada specified from time
to time in Schedules I and IV to the Financial Administration Act at any
point during the period covered by the total of the lump-sum payment and salary
top-up allowance, if any, shall reimburse the Receiver General for Canada by an
amount corresponding to the period from the effective date of re-appointment to
the end of the original period covered by the total of the lump-sum payment and
salary top-up allowance, if any. (revised April 1, 2005)
7.8.2 An individual who receives a lump-sum payment pursuant to subsection
7.6.1 and, as applicable, is either reappointed to that portion of the public
service of Canada specified from time to time in Schedules I and IV to the Financial
Administration Act or hired by the new employer at any point covered by the
lump-sum payment, shall reimburse the Receiver General for Canada by an amount
corresponding to the period from the effective date of the reappointment or
hiring to the end of the original period covered by the lump-sum payment.
(revised April 1, 2005)
7.9 Vacation leave credits and severance pay
7.9.1 Notwithstanding the provisions of the employee's collective agreement
concerning vacation leave, an employee who accepts a job offer pursuant to this
part may choose not to be paid for earned but unused vacation leave credits,
provided that the new employer will accept these credits.
7.9.2 Notwithstanding the provisions of the employee's collective agreement
concerning severance pay, an employee who accepts a reasonable job offer
pursuant to this part will not be paid severance pay where successor rights
apply and/or, in the case of a Type 2 transitional employment arrangement, when
the new employer recognizes the employee's years of continuous employment in the
public service for severance pay purposes and provides severance pay
entitlements similar to the employee's severance pay entitlements at the time of
the transfer.
7.9.3 Where:
(a) the conditions set out in 7.9.2 are not met,
(b) the severance provisions of the collective agreement are extracted from
the collective agreement prior to the date of transfer to another non-federal
public sector employer,
(c) the employment of an employee is terminated pursuant to the terms of
section 7.5.1, or
(d) the employment of an employee who accepts a job offer from the new
employer in a Type 3 transitional employment arrangement is terminated on the
transfer of the function to the new employer
the employee shall be deemed, for purposes of severance pay, to be
involuntarily laid off on the day on which employment in the public service
terminates.
1. The new employer will have in place, or Her Majesty in right of Canada
will require the new employer to put in place, reasonable pension arrangements
for transferring employees. The test of "reasonableness" will be that
the actuarial value (cost) of the new employer pension arrangements will be at
least 6.5 per cent of pensionable payroll, which in the case of defined-benefit
pension plans will be as determined by the Assessment Methodology developed by
Towers Perrin for the Treasury Board, dated October 7, 1997. This Assessment
Methodology will apply for the duration of this agreement. Where there is no
reasonable pension arrangement in place on the transfer date or no written
undertaking by the new employer to put such reasonable pension arrangement in
place effective on the transfer date, subject to the approval of Parliament and
a written undertaking by the new employer to pay the employer costs, Public
Service Superannuation Act (PSSA) coverage could be provided during a
transitional period of up to a year.
2. Benefits in respect of service accrued to the point of transfer are to be
fully protected.
3. Her Majesty in right of Canada will seek portability arrangements between
the Public Service Superannuation Plan and the pension plan of the new employer
where a portability arrangement does not yet exist. Furthermore, Her Majesty in
right of Canada will seek authority to permit employees the option of counting
their service with the new employer for vesting and benefit thresholds under the
PSSA.
Association of Public Service Financial Administrators
Canadian Air Traffic Controllers Association
Canadian Federal Pilots Association
Canadian Association of Professional Radio Operators
Canadian Merchant Service Guild
Canadian Military Colleges Faculty Association
Canadian Union of Professional and Technical Employees
Council of Graphic Arts Union of the Public Service of Canada
Federal Dockyard Chargehands Association
Federal Government Dockyards Trade & Labour Council (East)
International Brotherhood of Electrical Workers
Professional Association of Foreign Service Officers
Social Science Employees Association
Years of Service in the Public Service
|
Transition Support Measure (TSM)
(Payment in weeks' pay)
|
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
|
10
22
24
26
28
30
32
34
36
38
40
42
44
46
48
50
52
52
52
52
52
52
52
52
52
52
52
52
52
52
49
46
43
40
37
34
31
28
25
22
19
16
13
10
07
04
|
For indeterminate seasonal and part-time employees, the TSM will be pro-rated
in the same manner as severance pay under the terms of the collective agreement.
Severance pay provisions of the collective agreement are in addition to the
TSM.
|