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1 |
PURPOSE |
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1.1 |
The purpose of this directive is to provide Compensation Advisors in departments with information regarding the signing bonus payable as a result of the Collective Agreements currently being negotiated.
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1.2 |
In this text, use of masculine is generic and applies to both men and women.
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2 |
BACKGROUND |
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2.1 |
The most current round of Collective Bargaining includes a signing bonus payable to employees in the affected bargaining group on date of signing.
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3 |
POLICY |
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3.1 |
There will be two different types of signing bonus.
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3.1.1 |
The first type of signing bonus, entitlement code 360, will be a lump sum payable to all active and temporarily struck off strength (T-SOS) employees in the affected group on the date of signing. This will include employees acting in an affected position as well as casuals, terms of less than three months and excluded employees. Part-time employees will receive the total amount of the bonus (not prorated). This will also include employees in all pay frequencies (7A, 7B, 7C and 6C).
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3.1.2 |
The second type of signing bonus , entitlement code 361, will be a lump sum payable to all active and T-SOS employees in the affected group on the date of signing. This will include employees acting in an affected position as well as casuals, terms of less than three months and excluded employees. This bonus will be prorated for part-time employees based on their assigned work week (AWW) on the date of signing. This will also include employees in all pay frequencies (7A, 7B, 7C and 6C).
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3.2 |
The lump sum payment will vary according to the amount agreed upon in the Collective Agreement. The Collective Agreement will also determine which type of signing bonus is applicable.
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3.3 |
The signing bonus is subject to income tax, Canada Pension Plan or Quebec Pension Plan and Employment Insurance Plan deductions.
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3.4 |
The signing bonus will not be considered as salary for recalculation purposes. It is not subject to Disability Insurance Plan (DI), Long-Term Disability Insurance Plan (LTD), Public Service Superannuation Act (PSSA), Supplementary Death Benefit Plan (SDB) and Public Service Management Insurance Plan (PSMIP) deductions. It is not to be used to compute the 4% gratuity or other entitlements such as premium pay in lieu of statutory holidays.
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3.5 |
Acting Pay |
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The signing bonus will be payable to employees based on the position they occupy on the date of signing of the Collective Agreement including employees who are receiving acting pay.
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3.6 |
Salary Protection |
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The signing bonus will be payable to employees in a salary protection situation based on the position they occupy on the date of the signing of the Collective Agreement.
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3.7 |
Dual Employment |
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Employees that occupy two positions within units represented at the same bargaining table and are on leave without pay (LWOP) from one of the positions will only receive one signing bonus.
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Employees that occupy two positions within units represented at two different bargaining tables will receive the signing bonus for each of the positions, if they occupy the position on date of signing.
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Example 1
Substantive position: CR-3
Secondary position: ST-SCY-2
Signing Bonus: $625 (same bargaining table)
Total bonus received: $625
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Example 2
Substantive position: TR-2
Secondary position: EC-1
| Signing Bonus: |
February 25, 2000 |
$800 as TR |
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March 8, 2000 |
$800 as EC |
| Total bonus received: |
$800 + $800 = $1,600 |
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3.8 |
Dual Remuneration |
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Employees working in two positions and receiving dual remuneration will be paid a signing bonus for each position.
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Example of a prorated bonus (code 361)
On February 25, 2000, an employee is working 30 hours in one position and 15 hours in another. For both positions, the Standard Work Week (SWW) is 37.5 hours and the amount of the signing bonus is $800.
Signing bonus for first position = $800 x (30 hours ÷ 37.5 hours) = $640
Signing bonus for second position = $800 x (15 hours ÷ 37.5 hours) = $320
Total bonus received = $640 + $320 = $960
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Example of a bonus that is not prorated (code 360)
On February 25, 2000, an employee is working 30 hours in one position and 15 hours in another.
Signing bonus for first position = $800
Signing bonus for second position = $800
Total bonus received = $800 + $800 = $1,600
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4 |
PROCEDURES |
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4.1 |
The Public Service Staff Relations Act (PSSRA) requires that each employee receive all adjustments within 90 calendar days of the signing of the collective agreement. As a result, automated payments will be issued by the Consolidated Systems Control Division (CSCD) prior to the expiry of the 90 days. You will be notified of the payment date as well as the entitlement code that will be used by Broadcast Message through the Regional Pay System (RPS).
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4.2 |
Automated payments will not be issued for employees receiving dual remuneration and employees in dual employment situations. Signing bonus payments must be input for these employees by Compensation Advisors in departments.
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The payment must be created using an entitlement commence, with an "Effective From" and an "Effective To" date corresponding to the date of signing of the Collective Agreement and a lump sum rate base.
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4.3 |
The prorated calculation of the signing bonus is paid in the same proportion as the assigned weekly hours of work compared with the normal weekly hours of work for full-time employees. Therefore, the payment formula to calculate the lump sum payment for part-time employees is: amount of signing bonus x (AWW ÷ SWW). |
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5 |
INQUIRIES |
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5.1 |
Any request for information regarding the foregoing should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office. |
R. Jolicoeur
Director General
Compensation Sector
Government Operational Service
[Print Version]