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Work Force Adjustment

If I choose to be an opting surplus employee for the 12 months without a guaranteed reasonable job offer and am appointed to a lower level position, is my salary protected?

If an opting employee were to choose opting “surplus” priority for the 12 months without a guaranteed reasonable job offer and were appointed to a lower level, the AJC if of the view that salary protection should be available because the employee remains “surplus” as per the definition set out in the WFAD.

For more information, please refer to sections 5.1, 5.1.2and the definitions of « surplus employee » and “surplus priority” of the WFAD.

What criteria do deputy heads use when determining who is to be declared surplus? Does seniority apply when deputy heads decide who should be laid off?

Seniority may be a relevant consideration however it is up to the deputy heads to establish the criteria being used.

Article 34 of the collective agreement requires the employer to make every reasonable effort to ensure that any reduction in the work force is accomplished through attrition.

For information on the merit criteria used, please refer to the Public Service Commission´s Guidance Series: Selecting Employees for Retention or Layoff.

For more detailed information regarding the WFAD, you are encouraged to refer to the following reference materials:
What are my severance pay and other entitlements in the event I am laid off?

Depending on the option you choose from those listed in Appendix D of the WFAD, i.e. surplus priority status, transition support measure or education leave, you may be entitled to layoff priority for 1 year, severance pay at layoff rate in accordance with the terms set out in the collective agreement in addition to a lump-sum amount in accordance with the schedule set Transition Support Measure Table at Appendix C of the WFAD.  Please read Appendix D and the remainder of the WFAD carefully for details on other entitlements you may have.

Pursuant to section 22.01(a) of the collective agreement, a lawyer shall receive severance benefits calculated on the basis of his weekly rate of pay:

(i) On the first lay off after November 28, 1969, two (2) weeks´ pay for the first complete year of continuous employment and one week´s pay for each additional complete year of continuous employment and, in the case of a partial year of continuous employment, one week´s pay multiplied by the number of days of continuous employment divided by three hundred and sixty-five.

(ii) On second or subsequent layoff after November 28, 1969, one week´s pay for each complete year of continuous employment and, in the case of a partial year of continuous employment, one week´s pay multiplied by the number of days of continuous employment divided by three hundred and sixty five, less any period in respect of which he was granted severance pay under subparagraph 22.01(a)(i) above.

What happens if I have received a guarantee of a reasonable job offer and I am declared a “surplus employee”?

In such instances, you will be placed on surplus priority status when a guaranteed reasonable job offer is made (GRJO) until you receive/accept a reasonable job offer (RJO), are laid off or resign.  If a reasonable job offer is extended to you, you may choose to accept or reject the offer.   Consequences relating to the acceptance or rejection of job offers are covered under Appendix D outlining the Key Elements of the WFAD, and more specifically covered under Part I of the WFAD.
 
If for some reason, you refuse a reasonable job offer, you will be placed on lay-off but no sooner than 6 months from the beginning of the surplus period (i.e. the date you were offered a GRJO).  You would remain on lay-off priority status (unpaid) for 1 year.

What is a Work Force Adjustment (WFA) situation?

According to the Work Force Adjustment Directive, a “work force adjustment” is defined as “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.”

For a SNAPSHOT on the process, see Appendix D to the Directive outlining a summary of the Key Elements of the WFAD.

CONTACT INFORMATION

If you have additional questions, consult the Directive, your Governing Council members, or contact us at: wfa-re@ajc-ajj.ca.

Can employees who have not been identified as affected or surplus step forward and volunteer to depart?

Yes, if the department in question makes this option available.  Departments are considering various ways to reduce the impact of the required reductions on its current employees, which may include inviting employees to express their interest in volunteering to be laid-off.  It is at the discretion of management to accept an expression of interest to “volunteer”.  Accepted volunteers could then be entitled to the appropriate Workforce Adjustment (WFA) provisions whether they have received an affected status letter or not.

NEW Voluntary departure programs (6.2) - A two-prong voluntary departure program has been added to the Directive for employees who are not provided with a guarantee of a reasonable job offer. Departments and organizations must establish the program for situations involving 5 or more employees at the same group and level within a work unit. Also, the DH may establish a program for units where less than 5 employees are affected. The provision also indicates that the program must be subject to meaningful consultation through joint union-management WFA committees, must not be used to exceed reduction targets, must take place before the department or organization engages in the selection of employees for retention or lay-off (SERLO) process(es), provide for a minimum of 30 calendar days for employees to decide to participate, and allow employees to select Options 6.4.1 (b), (c)(i) or (c)(ii). Finally, when the number of volunteers is larger than the required number of positions to be eliminated, volunteers must be selected based on seniority.



Once my position has been declared surplus, might I be assigned different work?

Yes, you may be asked to perform duties that are different from the ones you have usually performed.

What can I do if I disagree with management´s decision to lay me off? What happens if I disagree with the selection criteria for retention and lay-off?

Generally, disputes relating to the hiring and laying off of public servants fall under the exclusive jurisdiction of the Federal Public Sector Labour Relations and Employment Board pursuant to the Public Service Employment Act (“PSEA”).   As staffing policies are not subject to collective bargaining, your available remedies may be limited to the PSEA, which provides for limited recourse in the case of certain predefined types of complaints.  More specifically, section 65(1) of the PSEA states:
 
“Where some but not all of the employees in a part of an organization are informed by the deputy head that they will be laid off, any employee selected for lay-off may make a complaint to the Tribunal, in the manner and within the time fixed by the Tribunal´s regulations, that his or her selection constituted an abuse of authority.” (Emphasis added.)

Section 65(2) of the PSEA prevents complaints against the actual decision to layoff employees, the determination of the part of the organization impacted or the number of employees to be laid off from that part.

For more information on the evaluation criteria used in determining who should be laid off, you may consult the Public Service Commission´s Guidance Series: Selecting Employees for Retention or Layoff.

For union advice on whether or not you may have other avenues available to you on account of your particular situation which may bring other collective agreement provisions into play, you may contact the AJC by completing an InTake form outlining your details and forwarding it to admin@ajc-ajj.com .  

What is the impact on my pension if I am laid off?

The Public Service Superannuation Act governs pension benefits.   Effective your date of layoff, your service ceases to accrue.  You may contact your Pension Benefits Administrator regarding your pension-related questions.

What happens if I refuse a reasonable job offer if I am given a guarantee of a reasonable job offer?

If you refuse a reasonable job offer, you will be laid off, in which case you will be paid until you are laid off.

If you are an opting employee, you will continue to be paid until you are laid off or choose to resign from the Public Service.

Who may be affected by a WFA?

A Work Force Adjustment applies to indeterminate employees upon being informed in writing that his or her services may no longer be required beyond a specified date. See Appendix D outlining a summary of the Key Elements of the WFAD.  

The Work Force Adjustment Directive does not apply to term employees, whose contracts are expected to terminate at the end of their term, unless otherwise renewed.

10. What is Alternation?

Alternation allows an Opting or Surplus employee to exchange positions with an unaffected employee who wishes to leave the core public administration and accept a TSM (Option B) or Education Allowance (Option C). The Alternation must occur within the 120-day opting period or 12-month surplus period under Option A. The date of Alternation must be specified, and employees must exchange positions on that same day.

If an unaffected employee alternates, they can only select Option B or C(i). If alternation is during Surplus A period, alternate’s TSM will be reduced by 1 week for each completed week between beginning of employee surplus period and date of alternation.

Please refer to section 6.3 Alternation of the WFAD.

If I initially decide to volunteer, may I withdraw?

It is our understanding that it will be possible to withdraw an initial offer to “volunteer”.

The voluntary departure process in no way abridges any rights of employees to participate in the alternation process provided for by their collective agreements.

Once my position is declared surplus, what kind of support should I expect from my department in relation to my search for alternate employment?

You and your manager are encouraged to discuss this to determine what is appropriate.  Generally, the departments do provide a certain level of assistance in support of your search for alternate employment.  

What are the Department or Agency’s notice obligations?

For official notification obligations relating to employees being declared surplus, consult section 1.1.6. of the WFAD.

For all other notification obligations, see Part II of the WFAD.

What happens to my benefits under the Public Service Health Care Plan (“PSHCP”) while on layoff?

Your benefits continue while a surplus employee and extend for up to one year or until you are entitled to an ongoing pension benefit, whichever is shorter. For more details, please refer to the PSHCP.

Will I still get paid even though I am in a surplus situation?

If you have been given a guarantee of a reasonable job offer, you will continue to be paid until you are offered and accept a reasonable job offer.

What happens if I am away on leave? Am I subject to the WFAD or is my position protected?

You may be the subject of the Work Force Adjustment Directive.  In other words, you may receive notice from your department regarding possible workforce adjustment while you are on official leave, provided that you have not been on leave for a period in excess of one year or where your position has not been permanently backfilled.

Are the transition support measure and the education allowance pensionable earnings?

No, they are not pursuant to the provisions of the Public Service Superannuation Act and Regulations (PSSA).

Are severance monies or amounts paid on account of Transition Support Measure or Education Allowance taxable?

All of these amounts are considered income.   For tax advice, the AJC recommends that you consult a tax professional or the Canada Revenue Agency.

What are my options if I am declared surplus and I have not received a guarantee of a reasonable job offer (“opting employee”)?

See Appendix D Chart outlining the Key Elements of the WFAD, including options.  
For more details regarding your options if you declared a surplus and have not received a guarantee of a reasonable job offer, consult Part VI, section 6.4 of the WFAD.

Is the Transition Support Measure based on years of cumulative or continuous years of employment?

The Transition Support Measure is based on years of service, both discontinuous and continuous.  For more information please see Appendix C of the WFAD.

9. What are the three options for Opting employees?

If an employee receives an Opting letter from the department notifying them that their services are no longer required and that they are not guaranteed a position or continued employment, they have 120 days to pick one of three options: 

  1. Option A: 12 Month Surplus Period to Secure a Reasonable Job Offer (RJO)
  2. Option B: Transitional Support Measure (TSM)
  3. Option C: Educational Allowance

Option A: What is the 12 Month Surplus Priority List?

An Opting employee who chooses Option A, will receive a letter giving them surplus priority rights for appointment to other positions in the Core Public Administration for 12 months; effectively allowing them to be considered ahead of unaffected employees for open positions. During this period, they have 12 months to find a reasonable job offer or else they will be laid-off. They would be entitled to the following:

  • qualify for a pension Waiver if they are 55-59 years of age with at least 10 years of service;
  • receive pay in lieu of unfulfilled surplus period for a surplus employee who offers to resign before the end of the 12-month surplus period;
  • receive a lump-sum payment equal to the surplus regular pay for the balance of the surplus period, up to a maximum of 6 months (the amount cannot exceed the maximum that would have been received under Option B).

When choosing this option, the employee discontinues working as of the resignation day and is considered to have been laid-off for purposes of severance pay entitlement. 

Option B: What is the Transition Support Measure (TSM)?

When choosing this option, the employee receives a taxable cash payment based on years of service in the Public Service.

Under this option, the Employee:

  • resigns and receives a lump-sum amount ranging from 4 to 52 weeks salary.
  • is considered laid-off for severance pay purposes;
  • is entitled to $1,200 for financial and job placement counselling services;
  • relinquishes any priority rights for reappointment;
  • receives a pension waiver if 55-59 years of age with at least 10 years of service (not in receipt of a reasonable job offer (RJO) and is laid-off)

With this option, the employee receives a pension waiver allowing the employee to receive an unreduced pension provided they are at least 55 years old and have at least 10 years of service.

Information on exact TSM payments in weeks’ pay by year of service can be found in the WFAD (Appendix C).

Option C: What is the Educational Allowance?

When choosing this option, the employee receives a cash payment equivalent to Option B plus reimbursement of up to $17,000 as an Educational Allowance for receipted expenses for tuition fees, costs of books and relevant equipment.

The Employee effectively resigns and receives a lump-sum amount ranging from 4 to 52 weeks salary and $1,200 for financial and job placement counselling services in exchange for pursuing this option. In turn, the employee relinquishes any priority rights for reappointment and is considered to have been laid-off for purposes of severance pay entitlement. 

When picking this option, the employee has the option of taking Leave Without Pay (LWOP) for up to two years to study.

If no proof of registration is provided within 12 months, resignation is assumed and considered a laid-off for severance pay purposes.

At the end of the 2 years, the employee is laid off unless alternate employment is found and during this time, the employee remains on the lay-off priority status for 12 months.

8. What is an Opting employee?

An Opting employee is an indeterminate employee who does not receive a GRJO. In writing, they are offered three options under Section 6.4 of the WFAD. The employee must select one of the options in writing within 120 days of notification. Once one of the options is picked and submitted in writing, the employee cannot change their option.

If no option is selected, Option A is deemed selected by default.

If a reasonable job offer (not requiring relocation) is made before the employee selects an option, they become ineligible for Options A, B, or C.

You may find details on the three options in the WFAD key elements flowchart (Appendix D).

7. What is a Surplus employee?

An indeterminate employee is declared a Surplus employee when their position is being eliminated and they are eligible for a GRJO. In such instances, the employee will be placed on Surplus Priority Status allowing them to be appointed to other positions within the public service until:

  • They accept or refuse a reasonable job offer,
  • Are laid off, or
  • Resign.

Details and consequences of job offer decisions are provided in Appendix D of the WFAD.

6. How is it determined who is declared Unaffected, Surplus, or Opting?

Deputy heads are responsible for identifying which positions are considered Affected, based on organizational needs. They have the authority to determine the merit criteria, evaluate positions and essential qualifications to decide which roles will be retained and which will be affected, in alignment with both current and anticipated operational and organizational needs, as well as the broader requirements of the public service. This process may taken weeks to years before it is complete and an employee notified of their Official Status.

WFA exercises are focused on positions and the nature of the work performed—not on the individuals occupying those roles. As a result, it is common for all employees performing similar duties within the same team to be affected by the WFA.

5. What happens after receiving the Official Notification of WFA Status?

After receiving the initial Notification of Affected Status letter, the department will review the status of each affected employee and determine whether the employee will remain on Affected Status or not. After the review, the employee will receive an Official Notification of WFA Status letter. The letter will outline which of the possible scenarios applies to the employee:   
 

  1. DECLARED SURPLUS – the department will notify the employee that their position is eliminated and will be declared Surplus with the Guarantee of a Reasonable Job Offer (GRJO);
  2. DECLARED AN OPTING EMPLOYEE (NO GRJO) – the department will notify the employee that their position is eliminated and they are declared an Opting employee, where they will have 120 days to choose one of the three options found in Appendix D of the WFAD; or
     
  3. DECLARED UNAFFECTED - the department has decided the employee is no longer affected and that they will be retained within the public service either in their current or new position.
4. What is SERLO and what happens as a result?

After the Volunteer Departure Programs, a Selection of Employees for Retention and Lay-off (SERLO) process is one of the ways in which the department can select employees for retention or lay-off based on merit, in line with organizational requirements in a WFA situation. The process is outlined in the Public Service Commission’s Guide on the Selection of Employees for Retention and Lay-off.

3. What is a Voluntary Departure?

Departments may offer Voluntary Departure Programs to mitigate WFA impacts. These allow employees to express interest in being laid off (only if no Guarantee of a reasonable job offer (GRJO) is available). It is at the discretion of management to accept an expression of interest to volunteer.

For WFA situations involving five (5) or more affected employees in the same group, level, and work unit, departments are required to establish Voluntary Departure Programs. Employees will have at least 30 calendar days to decide whether they wish to participate.

To learn more about these programs, including the benefits and consequences of participation, please refer to Sections 6.4.1 (B), (C)(i), and (C)(ii) of the Directive.

2. What happens after receiving a Notification of Affected Status?

Receiving a Notification of Affected Status means that the department has initiated a WFA process and has identified the position as potentially impacted in accordance with the WFAD.

However, this does not mean the employee will automatically be declared Surplus or an Opting employee. It signals that the department is conducting further analysis of the work unit to determine how they can address the workforce adjustment situation.

Affected employees should continue performing their duties.

The department will review the status of each affected employee annually, or earlier, from the date of initial notification of affected status and determine whether the employee will remain on affected status or not. After the review, the employee will receive an Official Notification of WFA Status letter. In the meantime, the employee may be asked to participate in a Selection of Employees for Retention and Lay-off (SERLO) process or Voluntary Departure Program.

1. What is a Workforce Adjustment (WFA) situation?

A Workforce Adjustment (WFA) situation arises when a deputy head determines that the services of one or more indeterminate employees will no longer be required beyond a specific date. This may result from a lack of work, the discontinuance of a function, a relocation where the employee chooses not to move, or an alternative delivery initiative. These situations are governed by the National Joint Council (NJC) Workforce Adjustment Directive (referred to as the “WFAD” or “Directive”).

The key elements of the WFAD are depicted in Appendix D of the Directive.

WFA applies to indeterminate employees who are informed in writing that their services may no longer be required for one of the reasons outlined in the WFAD. This includes lack of work, the discontinuation of a function, a relocation the employee does not accept, or an alternative delivery initiative.

Below, please find key terms relating to WFA as defined in the NJC Directive:

“Affected employee (employé 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.

Guarantee of a reasonable job offer (garantie d’une offre d'emploi raisonnable) – is a guarantee of an offer of indeterminate employment within the core public administration 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 core public administration. Surplus employees in receipt of this guarantee will not have access to the options available in Part VI of this Directive.

Reasonable job offer (offre d'emploi raisonnable) – is an offer of indeterminate employment within the core public administration, normally at an equivalent level. 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:

  1. 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;
  2. It is a seamless transfer of all employee benefits including 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.

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.”


 


1 National Joint Council, Work Force Adjustment Directive, Definitions