DEPARTMENT OF NATIONAL DEFENCE
WORK FORCE ADJUSTMENT
PROCEDURES
2011
TABLE OF CONTENTS
PART 1 - WORK FORCE ADJUSTMENT (WFA) - GENERAL ...................................... 1
1.1 APPLICATION ...................................................................................................... 1
1.2 DEFINITION ......................................................................................................... 2
1.3 DEPARTMENTAL OBJECTIVES ......................................................................... 2
1.4 PRINCIPLES ........................................................................................................ 2
1.5 ACCOUNTABILITY ............................................................................................... 3
1.6 RESPONSIBILITIES OF THE LEVEL 1 ADVISOR ............................................... 3
1.7 RESPONSIBILITIES OF THE DELEGATED AUTHORITY .................................. 4
1.8 RESPONSIBILITIES OF THE CIVILIAN HUMAN RESOURCES SERVICE
CENTRE DIRECTOR .................................................................................................. 5
1.9 RESPONSIBILITIES OF THE DIRECTOR GENERAL CIVILIAN WORKFORCE
DEVELOPMENT (DGWD) ........................................................................................... 6
1.10 RESPONSIBILITIES OF THE DIRECTOR GENERAL WORKPLACE
MANAGEMENT (DGWM) AND THE DIRECTOR GENERAL CIVILIAN HUMAN
RESOURCES MANAGEMENT OPERATIONS (DGCHRMO) ..................................... 7
1.11 RESPONSIBILITIES OF EMPLOYEES .............................................................. 7
Part 1 Annex: ............................................................................................................... 7
DELEGATION OF AUTHORITIES FOR WFA ACTIVITIES ............................................................................ 8
PART 2 - PROCEDURES ............................................................................................. 12
2.1 HUMAN RESOURCE PLANNING ....................................................................... 12
2.2 DEPUTY MINISTER APPROVAL OF WORKFORCE ADJUSTMENT ACTIVITIES
................................................................................................................................... 12
2.3 OFFICIAL NOTIFICATION TO THE TREASURY BOARD SECRETARIAT AND
BARGAINING AGENTS OF WFA SITUATIONS ....................................................... 13
2.4 COMMUNICATION .............................................................................................. 13
2.5 UNION CONSULTATION .................................................................................... 14
2.6 GUARANTEED REASONABLE JOB OFFER (GRJO) ....................................... 14
2.7 OPTIONS AVAILABLE UNDER PART VI OF THE WFAD/WFAA's ................... 15
Option a): 12-MONTH SURPLUS PRIORITY PERIOD ........................................ 16
PAY IN LIEU OF UNFULFILLED SURPLUS PERIOD (PIL) ........................................................................ 16
Option b): TRANSITION SUPPORT MEASURE .................................................. 17
Option c): EDUCATION ALLOWANCE ................................................................ 18
2.8 COSTS ................................................................................................................ 19
2.9 DEFINING AN AREA OF ADJUSTMENT ........................................................... 20
2.10 TERM EMPLOYEES ........................................................................................ 20
2.11 REDUCING WITHIN A GROUP OF SIMILAR POSITIONS – SOLICITING
VOLUNTEERS .......................................................................................................... 21
2.12 SELECTING EMPLOYEES FOR RETENTION AND LAY-OFF....................... 22
2.13 USE OF A FORMAL AFFECTED PERIOD....................................................... 23
2.14 NOTIFYING EMPLOYEES OF THE WFAD /WFAA PROVISIONS APPLICABLE
TO THEM .................................................................................................................. 24
2.15 OPTION DECISION PERIOD ........................................................................... 25
2.16 DEPARTURE DATES ....................................................................................... 25
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2.17 SEASONAL AND PART-TIME EMPLOYEES.................................................... 26
2.18 ALTERNATION PROCESS ............................................................................... 26
2.19 EMPLOYEE COUNSELLING ........................................................................... 28
2.20 REDEPLOYMENT ACTIVITIES........................................................................ 29
2.21 APPOINTMENT ................................................................................................ 30
2.22 RETRAINING.................................................................................................... 31
2.23 MONITORING .................................................................................................. 33
2.24 IMPACT OF REORGANIZATIONS .................................................................... 34
2.25 IMPACT OF A RELOCATION OF A WORK UNIT ............................................ 34
2.26 NOTICE OF LAY-OFF ...................................................................................... 35
2.27 REIMBURSEMENT OF TSM ............................................................................ 36
2.28 REDRESS ........................................................................................................ 37
Part 2 Annexes: ......................................................................................................... 38
GUIDELINES FOR DEPUTY MINISTER APPROVAL OF WORK FORCE ADJUSTMENT
ACTIVITIES .................................................................................................................................... 39
REQUEST FOR PAY IN LIEU OF UNFULFILLED SURPLUS PERIOD ........................................ 41
SAMPLE LETTER FOR EMPLOYEES ACCEPTING OPTION C) II) .............................................. 42
SAMPLE SURPLUS LETTER FOR EMPLOYEES GUARANTEED A REASONABLE JOB OFFER
(RJO) - RJO INCLUDED ................................................................................................................ 43
SAMPLE SURPLUS LETTER FOR EMPLOYEES GUARANTEED A REASONABLE JOB OFFER
(RJO) - RJO NOT BEING MADE AT THIS TIME ............................................................................ 45
NOTE 2: SELECT THE APPROPRIATE PARAGRAPH FOR THE SITUATION. USE THE FIRST WHEN THE
EMPLOYEE IS DECLARED SURPLUS AS A RESULT OF A SELECTION PROCESS IN ACCORDANCE WITH PSER
21(1). THE SECOND PARAGRAPH IS USED WHEN AN EMPLOYEE IS IN A UNIQUE POSITION THAT IS SURPLUS
TO REQUIREMENTS OR ALL EMPLOYEES OF SIMILAR POSITIONS ARE BEING DECLARED SURPLUS. ........... 46
SAMPLE LETTER TO EMPLOYEES OFFERED OPTIONS UNDER ............................................ 47
PART VI OF THE WFAD/WFAA ..................................................................................................... 47
WORK FORCE ADJUSTMENT OPTION SELECTION FORM ...................................................... 50
SAMPLE SURPLUS LETTER FOR EMPLOYEES WHO SELECTED OPTION A) ........................ 51
SAMPLE NOTICE OF REDEPLOYMENT RESPONSIBILITIES FOR EMPLOYEES PROVIDED
WITH A GRJO ................................................................................................................................ 53
SAMPLE NOTICE OF RELOCATION OF A WORK UNIT.............................................................. 54
SAMPLE SURPLUS LETTER IN THE CASE OF A RELOCATION OF A WORK UNIT WHERE
RELOCATED JOB COULD BE THE GRJO ................................................................................... 56
SAMPLE NOTICE OF LAY-OFF .................................................................................................... 58
PART 3 - ADMINISTRATION OF EMPLOYEES ON LEAVE WITHOUT PAY (LWOP)
AND WHO ARE AFFECTED BY WORK FORCE ADJUSTMENT SITUATION ........... 59
3.1 EMPLOYEES ON LWOP FOR MORE THAN 12 MONTHS AND POSITION
STAFFED INDETERMINATELY ................................................................................ 59
3.2 EMPLOYEES ON LWOP AND POSITION NOT STAFFED INDETERMINATELY
................................................................................................................................... 59
Part 3 Annex: ............................................................................................................. 60
SAMPLE NOTIFICATION LETTER TO EMPLOYEES ON LWOP ................................................. 61
PART 4 - OTHER BENEFITS UNDER THE WFAD...................................................... 62
4.1 SALARY PROTECTION ..................................................................................... 62
4.2 RETENTION PAYMENT ..................................................................................... 62
4.3 WAIVER OF SUPERANNUATION REDUCTION ............................................... 64
Part 4 Annex: ............................................................................................................. 64
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REQUEST FOR RETENTION PAYMENT ..................................................................................... 65
PART 5 - POST EMPLOYMENT .................................................................................. 66
5.1
5.2
5.3
5.4
5.5
GENERAL .......................................................................................................... 66
RETURNING AS AN EMPLOYEE ...................................................................... 66
RETURNING AS A CONTRACTOR ................................................................... 66
RESPONSIBILITY OF MANAGERS ................................................................... 67
POST-EMPLOYMENT CONDITIONS ................................................................ 68
PART 6 SPECIAL PROVISIONS REGARDING ALTERNATIVE DELIVERY
INITIATIVES 69
6.1 GENERAL .......................................................................................................... 69
6.2 PRINCIPLES ...................................................................................................... 69
6.3 DEFINITIONS ..................................................................................................... 69
6.4 TRANSITIONAL EMPLOYMENT ARRANGEMENT TYPES .............................. 70
6.5 TYPE 1 - FULL CONTINUITY............................................................................. 71
6.6 TYPE 2 - SUBSTANTIAL CONTINUITY ............................................................. 72
6.7 TYPE 3 - LESSER CONTINUITY ....................................................................... 74
6.8 DEPARTMENTAL HR POLICY ON EMPLOYMENT CONTINUITY IN ASD
SITUATIONS ............................................................................................................. 75
6.9 CONSULTATION................................................................................................ 76
6.10 SUCCESSOR RIGHTS .................................................................................... 77
6. 11 NOTICE OF EMPLOYMENT OFFER WITH ADI PROVIDER ......................... 78
6.12 COMPARISON OF BENEFITS ......................................................................... 79
6.13 EMPLOYEES ON LWOP .................................................................................. 79
6.14 NO JOB OFFER ............................................................................................... 80
6.15 OFFICIAL NOTIFICATION TO TREASURY BOARD ....................................... 80
6.16 PRIORITY RIGHTS .......................................................................................... 80
6.17 LUMP-SUM PAYMENTS AND SALARY TOP-UPS (ACCEPTANCE OF
OFFER) ..................................................................................................................... 81
6.18 PENSION PRINCIPLES ................................................................................... 81
6.19 PENSION TRANSFER AGREEMENTS ........................................................... 81
6.20 PENSION IMPLICATIONS ............................................................................... 82
6.21 TRANSFER OF LEAVE CREDITS ................................................................... 83
6.22 EMPLOYMENT GUARANTEE ......................................................................... 83
6.23 DEFERRED SEVERANCE PAY ....................................................................... 83
6.24 EMPLOYEE CONSENT FORM ........................................................................ 84
6.25 TERMINATION AUTHORITY ........................................................................... 84
6.26 SAMPLE LETTERS .......................................................................................... 85
6.27 EMPLOYEE TAKEOVERS ............................................................................... 85
6.28 REIMBURSEMENT .......................................................................................... 85
6.29 TIMELINE ......................................................................................................... 87
6.30 MANAGERIAL RESPONSIBILITIES AND SIGNING AUTHORITIES ............... 88
6.31 EMPLOYEE RESPONSIBILITIES .................................................................... 89
6.32 HR ROLES AND RESPONSIBILITIES ............................................................. 89
6.33 INITIAL ANALYSIS PHASE .............................................................................. 89
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6.34 CASE ANALYSIS PHASE ................................................................................ 90
6.35 THE WAY AHEAD ............................................................................................ 91
6.36 MOST EFFICIENT ORGANIZATION PROCESS ............................................. 91
6.37 IMPLEMENTATION PHASE ............................................................................. 92
Competitive Contracting Process....................................................................... 93
Departmental Policy on Employment Continuity .............................................. 93
Implementation Strategy ..................................................................................... 95
6.38 VERIFICATION PHASE ................................................................................... 97
Part 6 Annexes: ......................................................................................................... 98
DESCRIPTION OF TYPES OF JOB OFFERS IN ADI SITUATIONS ............................................. 99
SAMPLE NOTICE TO EMPLOYEES OFFERED TYPE 1 EMPLOYMENT WITH NEW SERVICE
PROVIDER .................................................................................................................................. 101
SAMPLE NOTICE TO EMPLOYEES OFFERED TYPE 2 EMPLOYMENT WITH NEW SERVICE
PROVIDER .................................................................................................................................. 103
SAMPLE NOTICE TO EMPLOYEES OFFERED TYPE 3 EMPLOYMENT WITH NEW SERVICE
PROVIDER (EMPLOYEE DECLINING OFFER TO BE PROVIDED WITH GRJO) ....................................... 105
SAMPLE NOTICE TO EMPLOYEES OFFERED TYPE 3 EMPLOYMENT WITH NEW SERVICE
PROVIDER (EMPLOYEE DECLINING OFFER TO BE OFFERED THE OPTIONS UNDER PART VI) .............. 107
SAMPLE NOTICE OF TERMINATION FOLLOWING REFUSAL OF TYPES 1 & 2 JOB OFFERS
..................................................................................................................................................... 111
SAMPLE NOTICE OF TERMINATION UPON ACCEPTANCE OF JOB OFFER (TYPES 1, 2, & 3)
..................................................................................................................................................... 112
SAMPLE REQUEST FOR CONSENT TO RELEASE PERSONAL INFORMATION TO THE NEW
SERVICE PROVIDER FOR THOSE EMPLOYEES OFFERED EMPLOYMENT ......................... 113
CONSENT FORM ........................................................................................................................ 114
NOTE: This manual is available on the ADM (HR-Civ) website.
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PART 1 - WORK FORCE ADJUSTMENT (WFA) - GENERAL
1.1 APPLICATION
This manual describes the policies and procedures applicable to work force adjustment
(WFA) situations in the Department of National Defence (DND). This document
replaces the previous manual issued in 2009.
All DND indeterminate employees represented by the following bargaining agents are
subject to the National Joint Council (NJC) Work Force Adjustment Directive (WFAD):
Association of Canadian Financial Officers
Canadian Association of Professional Employees
Canadian Merchant Service Guild
Canadian Military Colleges Faculty Association
Federal Dockyard Chargehands Association
Federal Government Dockyards Trades & Labour Council (East)
Federal Government Dockyards Trades & Labour Council (West)
International Brotherhood of Electrical Workers
With the exception of the references made to unions and the NJC, the WFAD also
applies to all excluded and unrepresented employees appointed on an indeterminate
basis.
Employees represented by the Public Service Alliance of Canada (PSAC) and the
Professional Institute of the Public Service of Canada (PIPSC) are covered by the
provisions of the Work Force Adjustment Appendix (WFAA) that forms part of their
relevant collective agreement.
Note: As the contents of the WFAD and the WFAAs are basically the same, the
policies and procedures outlined in this manual apply to all work force
adjustment (WFA) situations. Any differences between the provisions of the
WFAD and the WFAAs will be noted. The WFAD and the WFAAs can be found at
the following website:
http://www.tbs-sct.gc.ca/pubs_pol/hrpubs/TB_858/siglist_e.asp
Employees in the Executive Group and certain senior excluded levels (DS 7(a), 7(b),
and 8) are subject to the Directive on Career Transition for Executives.
.
1
1.2 DEFINITION
A work force adjustment occurs when one or more indeterminate employees are no
longer required beyond a specified date because of: lack of work; discontinuance of a
function; a relocation of a work unit in which the employee does not wish to relocate; or
an Alternative Delivery Initiative (ADI). In DND, ADIs are also referred to Alternative
Service Delivery (ASD) Initiatives. A work force adjustment may result from such
circumstances as unit closures or reductions, reclassifications, reorganizations, salary
wage envelope reductions or other expenditure restraints, program or technological
change, or transfer of work outside the Core Public Administration. The nature of the
work force adjustment can be a factor in determining employees' benefits and
entitlements.
1.3 DEPARTMENTAL OBJECTIVES
It is the policy of the Department of National Defence to minimize the impact of work
force adjustment situations on indeterminate employees by providing employment
continuity in the Core Public Administration (see Note), wherever possible. This is not
to be construed as the continuity of a specific position or job but rather the continuity of
employment. To this end, every indeterminate employee who is affected by a work
force adjustment and for whom the Deputy Minister has employment available or can
predict employment availability in the Core Public Administration within the foreseeable
future (generally speaking within the next twelve months) will receive a guaranteed
reasonable job offer (GRJO). Only those employees for whom the GRJO cannot be
provided will have access to the Options available in Part VI of the WFAD/WFAA. The
Department will also make every effort to maximize employment continuity for
employees affected by Alternative Delivery Initiatives (ADI), in accordance with the
provisions of Part VII of the WFAD/WFAA.
(Note: “Core Public Administration” means that part of the public service in and under
any department or organization, or other portion of the federal public administration
specified in Schedules I and IV to the Financial Administration Act (FAA) for which the
Public Service Commission has the sole authority to appoint.
1.4 PRINCIPLES
The Department is committed to the following guiding principles in the management of
work:
a.
Preparation of human resource plans early in the planning stages of the
work force adjustment to address the civilian personnel implications of any
proposed organizational changes. DND managers will make every effort
to minimize the negative impact of the work force adjustment through
forecasting natural attrition and retirements, reducing term employees,
2
and implementing staffing freezes. In assessing the impact of work force
adjustment, managers will also consider any employment equity
implications;
b.
Decision-making based on a sound business case analysis of the costs
and benefits of the proposed actions;
c.
Development of communication strategies to ensure that all interested
parties (senior management, employees, unions, media, etc.) are provided
with timely and accurate information;
d.
Open and meaningful consultation with its unions on all work force
adjustment matters;
e.
Provision of a GRJO for employees for whom employment continuity is
available or can be predicted to be available; and
f.
Training of DND employees affected by work force adjustment to enhance
internal and external employability.
1.5 ACCOUNTABILITY
Delegated authorities are accountable for planning and managing work force
adjustment situations in accordance with departmental policy and principles, the
provisions of the WFAD/WFAA, and directives of the Treasury Board Secretariat (TBS)
and Public Service Commission (PSC). To ensure that the human resources
implications of a potential work force adjustment are given full consideration, it is
strongly recommended that managers consult their Civilian Human Resources Officer at
the earliest possible stage before any organizational decisions or actions are taken.
Attached at Annex 1-A is a chart outlining the delegation of authorities and
responsibilities for WFA activities.
1.6 RESPONSIBILITIES OF THE LEVEL 1 ADVISOR
It is the responsibility of the Level 1 to:
a.
Provide direction on the management of their civilian human resources;
b.
Ensure that managers under their responsibility are fully conversant with
the departmental policies and the WFAD/WFAA;
c.
Ensure that proper notification of WFA situations is provided to Treasury
Board in accordance with departmental policy and the provisions of the
WFAD/WFAA;
3
d.
Approve or delegate approval of certain WFA lump-sum payments in
accordance with Treasury Board and departmental policies;
e.
Approve retraining agreements for periods of six months to two years for
surplus employees and laid-off persons;
f.
Administer the relocation policy; and
g.
Consult with bargaining agents at the national level.
1.7 RESPONSIBILITIES OF THE DELEGATED AUTHORITY
It is the responsibility of the delegated authority to:
a.
Manage effectively their SWE and human resources.
b.
Ensure that any DND employee with priority status is given first
consideration when staffing vacant positions.
c.
Analyze the civilian personnel implications of any proposed or planned
changes to their organization.
d.
Consult with their Civilian Human Resources Officer early in the planning
stages.
e.
Prepare submission to obtain the approval of the Deputy Minister of any
significant work force adjustment activity in accordance with departmental
policy.
f.
Identify the area(s) of adjustment and the employees who will be affected.
g.
Carry out effective human resources planning to minimize the impact of
any work force adjustment on indeterminate employees.
h.
Forecast and budget for work force adjustment related costs such as
lump-sum payments, retraining and travel expenses.
i.
Develop a communications strategy to ensure employees, unions and
other interested parties are provided with timely and accurate information.
j.
Consult with union officials on an ongoing basis.
k.
Notify all affected employees of their entitlements under the WFAD/WFAA.
4
l.
Support and promote the use of alternates as a means to secure
continued employment for affected employees.
m.
Inform the Deputy Minister, through the Assistant Deputy Minister (Human
Resources – Civilian) (ADM(HR-Civ)) of any proposed work force
adjustment situation affecting indeterminate employees.
n.
Select employees for retention and issue surplus notices to employees
who will not be retained, where applicable.
o.
Approve the resignation of employees opting for the Transition Support
Measure (TSM) or Education Allowance options.
p.
Approve certain WFA lump-sum payments in accordance with TB and
departmental criteria, where authority has been delegated.
q.
Ensure that all efforts are made to market and redeploy surplus
employees.
r.
Authorize retraining agreements up to six months and recommend to the
Level 1 the approval of retraining agreements for periods of six months to
two years.
s.
Extend surplus period or departure dates for extenuating operational
reasons; and
t.
Issue notices of lay-off to surplus employees and employees opting
for leave without pay under the Education Allowance.
1.8 RESPONSIBILITIES OF THE CIVILIAN HUMAN RESOURCES SERVICE
CENTRE DIRECTOR
The responsibilities of the Civilian Human Resources Service Centre Director are as
follows:
a.
Provide policy and procedural guidance to management.
b.
Assist in the preparation of human resource plans and communication
strategies to implement work force adjustments.
c.
Liaise closely with bargaining agents at the local, regional and national
levels.
5
d.
Arrange financial, career, and stress counselling for affected, opting and
surplus employees, and provide them with a statement of benefits.
e.
Actively market surplus employees seeking redeployment.
f.
Provide information to the PSC on surplus employees and laid-off persons
who are seeking redeployment, as well as employees who are entitled to a
reinstatement priority.
g.
Provide continuing counselling to surplus employees and laid-off persons
for the duration of the priority period.
h.
Maintain records and provide statistical information as required for
monitoring and audit purposes, and
i.
Monitor the effectiveness of the administration of WFA policies and
procedures.
1.9 RESPONSIBILITIES OF THE DIRECTOR GENERAL CIVILIAN WORKFORCE
DEVELOPMENT (DGWD)
DGWD responsibilities are outlined below:
a.
Liaise with central agencies and other government departments with
respect to the administration of work force adjustment.
b.
Formulate departmental policy on work force adjustment and interpret its
application.
c.
Establish communication strategies in support of work force adjustment.
d.
Liaise with bargaining agents at the national level to ensure that they are
kept informed of work force adjustment issues.
e.
Prepare and distribute work force adjustment information and
management tools.
f.
Establish a framework for the provision of support services,
including counselling to affected employees, and monitor its
implementation.
g.
h.
Maintain a database on acceptance of lump-sum payments.
Develop training and briefing materials; and
6
i.
Monitor the effectiveness of the administration of WFA policies and
procedures.
1.10 RESPONSIBILITIES OF THE DIRECTOR GENERAL WORKPLACE
MANAGEMENT (DGWM) AND THE DIRECTOR GENERAL CIVILIAN HUMAN
RESOURCES MANAGEMENT OPERATIONS (DGCHRMO)
The responsibilities of DGWM and DGCHRMO are as follows:
a.
Facilitate union consultation at the national level.
b.
Provide advice and guidance on pay and benefit matters, and staff
relations issues associated with work force adjustment situations; and
c.
Respond to work force adjustment related grievances.
1.11 RESPONSIBILITIES OF EMPLOYEES
It is the responsibility of employees affected by a work force adjustment to:
a.
Be mobile if declared surplus.
b.
Know their rights, obligations and benefits under the WFAD/WFAA.
c.
Take full advantage of stress, financial and career counselling services.
d.
Advise of their decision when offered the options under Part VI of the
WFAD/WFAA.
e.
Attend appointments made for referrals;
f.
Seriously consider all job opportunities presented to them, including
retraining and relocation possibilities, specified period appointments, and
lower level appointments; and
g.
Actively seek alternative employment in co-operation with the Department
and the PSC.
PART 1 ANNEX:
Annex 1-A: Delegation of Authorities for Work Force Adjustment Activities
7
Annex 1-A
Delegation of Authorities for WFA Activities
DM
ADM
(HR-Civ)
DGWD, DGWM,
DGCHRMO
Managers in DND
at the following
levels *
1
2
3
X
X
X
GOVERNANCE
X
1
To sub-delegate powers related to work force adjustment
2
To recommend delegation within DND and the CF, monitor the exercise of
delegated authorities and ensure compliance with human resources
requirements
X
3
To develop, promulgate and monitor departmental policy, programs and
direction relating to work force adjustment
X
4
To implement approved policies in their respective areas and manage the
provision of services in all work force adjustment matters (Note 1)
X
5
To monitor the overall exercise of delegated authorities within their
organizations
X
X
X
X
NOTIFICATION OF WORK FORCE ADJUSTMENT ACTIVITIES
6
To approve work force adjustment situations [Guaranteed Reasonable Job
Offer (GRJO) or Options]
7
To notify and seek the approval of the Deputy Minister of work force
adjustment situations
8
To notify the Treasury Board Secretariat and Chief Executive Officers (CEO)
of Bargaining Agents, of any work force adjustment situations (Note 2).
8
X
X
X
X
X
Annex 1-A
SURPLUS NOTIFICATION - GRJO
9
To proceed with surplus notification with a GRJO (Note 3).
X
X
10
To sign letter of surplus status with a GRJO (Note 6)
X
X
11
To approve and issue 30 days notice of lay-off
X
X
X
X
OPTIONS UNDER PART VI OF WORK FORCE ADJUSTMENT DIRECTIVE/APPENDIX
12
To proceed with the offer of options under Part VI of Work Force Adjustment
Directive/Appendix. (Note 3)
X
X
13
To sign the letter offering the options under Part VI of Work Force Adjustment
Directive/Appendix (Note 6).
X
X
X
X
14
To sign the letter of surplus status to employees choosing Option A (Note 6).
X
X
X
X
15
To approve employee's request for pay in lieu of unfulfilled surplus status
under Option A (Note 6).
X
X
X
X
16
To approve employee's request for Transition Support Measure (Option B) or
Education Allowance (Option C) (Note 6).
X
X
X
X
17
To extend paid surplus status under Option A for retraining purposes (Note 6).
X
X
X
X
18
To issue 30 days notice of lay-off under Option A (Note 6).
X
X
X
X
X
X
RETRAINING
19
To approve retraining agreements up to six months
X
X
20
To approve retraining agreements six months to two years
X
X
(Note 4)
9
Annex 1-A
ALTERNATIVE DELIVERY INITIATIVES (ADI)
21
22
X
To provide executive authority to proceed with ADI review
To issue notice of employment offer with new Alternative Delivery provider.
(Note 6)
X
X
X
X
23
To approve lump-sum payments and salary top-ups under Part VII of the
Work Force Adjustment Directive/Appendix. (Note 6)
X
X
X
X
24
To issue notice of termination of employment pursuant to Section 12(1)(f) of
the Financial Administration Act. (Note 6)
X
X
X
X
X
X
X
X
25
To extend period of notice prior to termination for operational reasons. (Note
6)
OTHER
26
To authorize funding for work force adjustment related counselling services
X
X
X
X
27
To offer and approve retention payments
X
X
X
X
28
To issue six month notice of relocation of a work unit (Note 3)
X
X
X
X
Notes:
1. Managers must seek the advice of their HRO at the outset of any potential WFA situation and throughout the process.
2.Departments are responsible for ensuring that Treasury Board and Bargaining Agents are notified of WFA situations in accordance
with the Work Force Adjustment Directive/Appendix. Notification must be sent to ADM(HR-Civ)/DGWD, through the Level 1, for onward
transmission to Treasury Board and applicable CEO of Bargaining Agent.
3. Level 1 organizations must have prior DM approval.
10
Annex 1-A
4. Level 1s have authority to approve retraining agreements in excess of six months and up to two years or may subdelegate approval to
Level 2 or Level 3 if appropriate.
5. The DM may subdelegate to the VCDS the executive authority for ADI projects that cross environmental or group boundaries. The
DM may subdelegate to Level 1 the executive authority for ADI projects within their area of responsibility.
6. Administrative activities following DM approval and Level 1 direction to proceed.
11
PART 2 - PROCEDURES
2.1 HUMAN RESOURCE PLANNING
It is essential that an effective human resource plan be prepared early in the planning
stages of a work force adjustment to address the civilian implications of any proposed or
planned organizational changes. As an initial step, an analysis of the impact on the
work force is necessary to identify the area of adjustment, the positions affected, the
deletion dates, and the indeterminate and term incumbents of these positions. Every
effort must be made to minimize the negative impact by assessing whether the work
force adjustment can be achieved through forecasting natural attrition and retirements,
not renewing the employment of term employees, and identifying employees who may
be interested in work-sharing, part-time or seasonal employment. If it does not appear
necessary to declare any employee surplus, no further action is required except to
maintain communication with employees and their union representatives.
A number of different strategies may be followed in planning and carrying out a work
force reduction, depending on the nature of the adjustment and the lead-time available.
For example, an impact analysis can be achieved through management surveys,
meetings with employees, or informal discussions. Various strategies are discussed in
more detail in sections 2.11 and 2.12.
2.2 DEPUTY MINISTER APPROVAL OF WORKFORCE ADJUSTMENT ACTIVITIES
For any proposed workforce adjustment activity (including alternative delivery initiatives
(ADI)) where indeterminate employees could be affected, it is necessary to obtain the
Deputy Minister's approval prior to proceeding with the activity. This approval is
required before any consultation with the unions or general meetings with employees.
Although specific details may not be available at this stage of the approval process, the
following information is required, as a minimum:





Unit and geographic location;
Reason for the work force adjustment situation;
Number of affected indeterminate employees by group and level;
Union affiliation; and
Expected date of WFA announcement.
The submission to the Deputy Minister must also include an indication of whether the
employees will be provided with a GRJO or offered the options under Part VI of the
WFAD/WFAA. The rationale should be based on the following factors:

availability of job opportunities in the current location and elsewhere in
DND;
12






likelihood of finding continued employment in the Core Public
Administration, generally within a one-year period, based on the Public
Service Commission’s Priority Information Management System
skills of affected employees;
mobility of employees;
possibility of retraining;
cost analysis; and
any other pertinent information.
The submission is to be signed by the Level 1 and forwarded to the Deputy Minister for
approval, through ADM (HR-Civ). A copy of these guidelines can also be found at
Annex 2-A.
2.3 OFFICIAL NOTIFICATION TO THE TREASURY BOARD SECRETARIAT AND
BARGAINING AGENTS OF WFA SITUATIONS
Under the WFA policies, there is a requirement to officially notify Treasury Board
Secretariat (TBS) of any work force adjustment situation affecting indeterminate
employees. This notification must be received at TBS at least four working days
before the WFA situation is announced.
Once the Level 1 submission notifying of proposed WFA activities has been approved
by the Deputy Minister, ADM (HR-Civ) is responsible for notifying TBS. Following
notification to TBS, ADM (HR-Civ) will then notify the Chief Executive Officers (CEO) of
the applicable bargaining agents at least two working days before any employees are
notified of the WFA situation. Once notification requirements have been met, ADM (HRCiv) will advise Level 1s that they can now proceed with union consultation, discussions
with employees, and WFA notification.
2.4 COMMUNICATION
A good communication strategy is the key to attaining co-operation and success in
effecting a work force adjustment and must be prepared at the outset and be in place
during the entire reduction process. A communication strategy identifies the target
audiences to which information is to be communicated, such as internal and external
organizations, central agencies, unions, employees and managers, clients, and the
media. It also identifies the type of information to be communicated to each audience,
the medium to be used to communicate the information, and to schedule the necessary
events. The objectives of a communication strategy are to provide timely and accurate
information to all parties in order to alleviate the natural anxiety of employees, avoid
false rumour, maintain good productivity and morale, develop and maintain a level of
trust and confidence, and to help employees evaluate their options and make informed
decisions about their future.
13
2.5 UNION CONSULTATION
Departments are now responsible for officially notifying the Chief Executive Officer of
the applicable bargaining agent of potential work force adjustment situations that may
affect any of their members. Once Deputy Minister approval is obtained, ADM (HR-Civ)
will notify the applicable bargaining agents.
An equally important element is complete and continuing consultation with union
representatives at the national, regional, and local levels. For any work force
adjustment involving civilian indeterminate employees, the Civilian Human Resources
Service Centre must co-ordinate the consultation with the national level bargaining
agent(s) through the responsible Level 1. Such consultation should commence after
Deputy Minister approval is received and continue throughout the workforce adjustment
process.
Level 3 is responsible for consulting with the local union representatives on all work
force adjustment matters. Union officials should be included in briefings to affected
employees and their help solicited in encouraging employees to seriously consider their
options, including offers of alternative employment.
2.6 GUARANTEED REASONABLE JOB OFFER (GRJO)
The emphasis of the WFAD/WFAA is on securing employment continuity for
indeterminate employees affected by work force adjustment situations. Accordingly, the
Deputy Minister is expected to provide a guaranteed reasonable job offer (GRJO) to
employees whose positions become surplus to requirements when continuing
alternative employment within the Core Public Administration is available or expected to
be available in the foreseeable future, generally speaking, within the next twelve
months.
A reasonable job offer is an offer of indeterminate employment within the Core Public
Administration that is 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 ADI situations, a reasonable job offer is one that meets the criteria set out for a Type
1 and Type 2 job offer under Part VII of the WFAD/WFAAs.
A job offer from a FAA Schedule V Employer is also a reasonable job offer providing
that:
(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
14
date of offer.
(b) There 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.
Where employees are being provided with a GRJO, they can be declared surplus on the
approval of the delegated authority.
2.7 OPTIONS AVAILABLE UNDER PART VI OF THE WFAD/WFAA'S
In those instances where a GRJO is not available in the Core Public Administration or
management does not believe it will be possible to secure a GRJO within the next year,
the approval of the Deputy Minister must be sought to offer the options under Part VI of
the WFAD/WFAA. Such circumstances may occur when the skills of the affected
employees are very specialized and retraining would be onerous and inappropriate; or
when the Core Public Administration is no longer employing the skills of the affected
employees; or when other job opportunities in the current location and other locations
within the Core Public Administration cannot be found. These guidelines are not allinclusive but assist in the preparation of the rationale in support of offering the options.
The submission must be recommended by the Level 1 and forwarded to the Deputy
Minister, through ADM (HR-Civ), for approval.
Once Deputy Minister approval is obtained, the employee must be given a 120-day
decision window to choose from the following three options:
(a)
A 12-month surplus priority period in which to secure a reasonable job
offer, followed by lay-off if no job offer is found;
(b)
A Transition Support Measure (TSM), which is a cash payment of up to 52
weeks' pay, based on the employee' s years of service in the Core Public
Administration; or
(c)
An Education Allowance, equivalent to the TSM, plus up to $11,000
(Note – The amount of education allowance may vary. Check the wording
of the applicable WFA policy) to reimburse the costs of tuition, books and
mandatory equipment from a learning institution. The employee can
either:
(i)
Resign on the specified departure date; or
(ii)
Proceed on leave without pay for a maximum period of two years.
15
Note- Employees who are covered by the PIPSC WFAA may be eligible
for an additional $2,000 for post-graduate training.
All opting employees are entitled to up to $600 (Note – Amount may vary. Check the
wording of the applicable WFA policy) to cover the costs of counselling services. Such
counselling services may include financial and job placement counselling services. The
three options are described in more detail below. Additional information on the actual
process of notifying employees of their entitlements can be found in section 2.14.
Option a): 12-MONTH SURPLUS PRIORITY PERIOD
An employee selecting this option will be declared surplus for a period of 12 months
during which the Department and the PSC will make every effort to secure a reasonable
job offer for the employee. If the employee selects this option early in the opting period,
the time remaining in the opting period can be added to the surplus period at the
employee's request. For example, if the employee has 80 days left in the opting period,
the surplus period would be 12 months plus 80 days, if the employee so requests.
A reasonable job offer will normally be at an equivalent level but this does not preclude
a lower level appointment. If the employee refuses a reasonable job offer during the
surplus period, the employee can be laid-off with one month's notice. This lay-off,
however, cannot occur before six months of paid surplus period has passed. For
example, an employee who refuses an offer seven months into the surplus period can
be laid-off with one month's notice, whereas an employee who declines an offer after
only two months of paid surplus status cannot be given a lay-off date any earlier than
six months from the date of the surplus declaration.
If the employee has not been appointed or deployed to another position by the end of
the surplus period, he/she is to be laid-off at the end of that period having received one
month's notice. The surplus period should only be extended as a result of extenuating
operational reasons or where the employee enters into a retraining agreement that goes
beyond the end of the surplus period. If an employee secures a short-term assignment
or employment opportunity that extends beyond the end of the surplus period, the
employee must be laid-off and appointed on a specified period basis to continue to
perform the term function.
Pay in Lieu of Unfulfilled Surplus Period (PIL)
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 period, the deputy head
may authorize a lump-sum payment equal to the employee’s regular pay for the balance
of the surplus period, up to a maximum of six months' pay. This lump-sum payment,
referred to as Pay in Lieu of Unfulfilled Surplus Period (PIL), cannot exceed the value of
the TSM that the employee would have received had he or she chosen this option. A
16
sample Request for Pay in Lieu of Unfulfilled Surplus Period form is attached at Annex
2-B. The approval of a request for PIL rests with the Level 1. This authority can be
sub-delegated but not below Level 3.
The approval of PIL is at the discretion of management but shall not be unreasonably
denied. A request for PIL can only be approved where the employee's work can be
discontinued on the employee's resignation date and no additional costs will be incurred
in having the work done in any other way. If the approving authority does not agree with
a request for PIL because there is work to be performed and a replacement would be
required or other costs incurred in getting the work done, a later resignation date should
be considered. If this is not possible, the approving authority must deny the request for
PIL.
Option b): TRANSITION SUPPORT MEASURE
The TSM is a cash payment based on the employee's years of service in the public
service and is paid at the employee's substantive group and level. The TSM payment is
expressed as an equivalent to weeks of regular pay and is paid in exchange for
resignation from the Core Public Administration. The schedule of payments is as
follows:
Years of
Service
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
TSM
10
22
24
26
28
30
32
34
36
38
40
42
44
46
48
Years of
Service
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
TSM
50
52
52
52
52
52
52
52
52
52
52
52
52
52
52
Years of
Service
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
TSM
49
46
43
40
37
34
31
28
25
22
19
16
13
10
7
4
The TSM is pro-rated for seasonal and part-time employees in the same manner as
severance pay under the terms of the collective agreement. The TSM can be paid in
17
one lump sum at the time of resignation or in two lump sums over a maximum period of
two years - one at the time of resignation and other in next calendar year. Severance
pay is paid at the lay-off rate in accordance with the severance pay provisions of the
employee's collective agreement, and is in addition to the TSM.
(Text in italics is currently under review.)
Employees accepting this option must resign on the departure date specified by
management in the letter notifying them of their options. An employee accepting Option
b) is not declared surplus. Following the option decision period, the employee will
simply be awaiting the resignation date.
Option c): EDUCATION ALLOWANCE
The Education Allowance consists of the TSM plus up to $11,000 for reimbursement of
receipted expenses for tuition, mandatory books and equipment at a recognized
learning institution. (Note – The amount of Education Allowance may vary. Check the
wording in the applicable WFA policy.) Employees who are covered by the PIPSC
WFAA may be eligible for an additional $2,000 for post-graduate training. An employee
choosing the Education Allowance has two options.
The first option is to resign on the departure date specified by management. In doing
so, the employee would receive the TSM on the date of departure and be reimbursed
education expenses upon the presentation of receipts. The employee would, however,
be considered to be laid-off only for purposes of severance pay.
The second option allows the employee to delay his or her separation from the Core
Public Administration by going on leave without pay for a maximum period of two years
while attending a learning institution. Leave would begin on the departure date
specified by management in the letter notifying the employee of their options. During
the leave without pay period, the employee may continue to be a benefit plan member
by contributing both the employee and employer shares to the benefit plans and the
Public Service superannuation plan.
Under Option c) (ii), proof of registration at a learning institution is required within 12
months of the start of the leave period. If this proof is submitted, the employee will
continue on leave without pay for a maximum of two years, after which he/she will be
laid-off in accordance with the Public Service Employment Act. The employee will enjoy
priority consideration for positions in the Core Public Administration for a period of one
year from the date of lay-off. If proof of registration is not submitted by the employee
within the first 12 months of leave, the employee will be deemed to have resigned and
will be considered to be laid-off only for purposes of severance pay.
Employees accepting the Education Allowance are not declared surplus. Under
Option c)(i), the employee simply awaits his/her resignation date following the end of the
18
option decision period. Under Option c)(ii), the employee proceeds on leave without
pay and will be laid-off no later than two years after the start of leave without pay,
providing proof of registration is submitted. Attached at Annex 2-C is a sample Notice
of Lay-off for Employees Selecting Option c) (ii), which should be issued once the
employee has selected this option. While on leave, the employee does not enjoy
priority status and as such, will not be considered for redeployment opportunities until
he or she is laid-off.
The Education Allowance is available for two years from the date of departure and only
the costs incurred within this period will be reimbursed. While the funding of the
Education Allowance is the responsibility of the employee's manager, the Director
General Learning and Professional Development (DGLPD) is responsible for the
administration of the training portion. DGLPD is responsible for the approval and
reimbursement of receipted expenses in accordance with Treasury Board and
departmental guidelines. Once an employee has opted for the Education Allowance, the
responsible manager must provide his or her financial coding to DGPLD so the
employee can be reimbursed for approved expenses. Further details on the
administration of the Education Allowance can be obtained from DGLPD.
(Text in italics is currently under review.)
2.8 COSTS
It is important for managers to be aware that the home unit is now responsible for all
work force adjustment costs. This includes the cost of the TSM, the reimbursement of
receipted expenses for tuition, mandatory books and equipment under the Education
Allowance, the salary costs associated with the surplus period, and the cost of any
lump-sum payments under Part VII (Special Provisions Regarding Alternative Delivery
Initiatives). Retraining costs (temporary duty, tuition, etc), travel for interviews, and
costs for counselling services must also be absorbed by the manager. Relocation costs
are the responsibility of the applicable Level 1. Local managers are expected to absorb
the costs of salary protection. The WFA costs should be factored into the business
planning process. If the unit has closed, the Level 1 assumes this responsibility. Other
costs related to striking off strength (SOS), such as the payment of accumulated leave
credits, remain the responsibility of the manager.
Severance pay for a surplus employee who is laid-off following term employment in
another department within one year of the original scheduled lay-off date is the
responsibility of the home department. The appointing department may recover the cost
by expenditure adjustment.
Note: The TSM, the PIL and the Education Allowance cannot be combined with any
other lump-sum payment under the WFAD/WFAA.
19
2.9 DEFINING AN AREA OF ADJUSTMENT
Where it appears that one or more positions will be surplus to requirements,
management, in consultation with the Civilian Human Resources Officer, must define
the area of adjustment. It is from within this area that affected employees will be
identified and declared surplus to requirements, where necessary.
To establish an area of adjustment, management must first identify what functions or
positions are to be discontinued in order to determine the location of employees who
are potentially affected. Second, the area of adjustment should be confined to the
organizational unit and the geographical area in which the work force adjustment will
take place. The area should be as restricted as possible to ensure that any employee
who self-identifies as willing to opt for one of the work force adjustment options when
these will be available, or who is declared surplus is performing the functions that are to
be discontinued. Note that the area of adjustment may be as small as one position if
the duties are unique.
Any positions whose incumbents are on a leave without pay (of the same type of leave)
in excess of one year should be considered as deployment opportunities for affected
employees, including employees within the same working group. In staffing the position
of the employee on leave on an indeterminate basis, this employee is entitled to a leave
of absence priority in accordance with the Public Service Employment Act. This results
in the removal of the employee on leave from the area of adjustment. If further
reductions are required, all of the employees in the work unit, including those recently
deployed, are administered in accordance with the area of adjustment policy.
Where the work force adjustment is of a phased nature, separate areas of adjustment
are recommended, each restricted to the location of the functions that are being
discontinued in that phase. Again, this is to ensure that employees being declared
surplus occupy positions that are being phased out at that time.
Employees must not be moved into positions identified for deletion simply for the
purpose of qualifying for the options under Part VI.
2.10 TERM EMPLOYEES
The employment of term employees working in an area of adjustment should not be
extended beyond their current specified periods of employment, if they can be replaced
by an affected or surplus employee or a laid-off person.
Where lack of work or discontinuance of a function has an impact on term employees,
the manager should endeavour to reduce the number of such employees through
attrition and local reassignment rather than early termination of employment. Where
early termination is unavoidable, the provisions of the WFAD/WFAA, the PSC priority
20
administration system, and this manual do not apply. In accordance with the Term
Employment Policy which came into effect on 1 April 2003, where a person employed
as a term employee will be renewed, will not be renewed, or will be laid off before the
originally specified end of term, the department is required to provide one month written
notice to the employee.
2.11 REDUCING WITHIN A GROUP OF SIMILAR POSITIONS – SOLICITING
VOLUNTEERS
When management is required to reduce from within a group of similar positions,
volunteers can be solicited from within the area of adjustment. Prior to seeking
volunteers, it must first be determined whether those who come forward will be provided
with a GRJO or given access to the options. The provisions to which employees will be
subject will have an effect on the number of volunteers to come forward.
Where a GRJO is being provided, there is less likelihood of volunteers coming forward,
given that volunteers in this case will be redeployed to another position in the Core
Public Administration. If the authority of the Deputy Minister has been obtained to offer
the options to the affected employees, the process of soliciting volunteers may prove
more fruitful in identifying employees who are interested in accepting one of the options.
In soliciting volunteers, the following approaches may be considered:
(a)
A general letter can be issued to all affected employees within the area of
adjustment advising them of the impending work force adjustment and
soliciting volunteers.
(b)
Managers can review any local lists of alternates. If some of the affected
employees have already identified themselves as potential alternates,
management may target these employees' positions for elimination. Since
placing your name on the list for alternation does not constitute a
commitment, employees should be consulted before positions are
targeted. This approach may only be viable when employees will be given
access to the options.
Employees may self-identify and be treated in accordance with the WFAD/WFAA if the
following conditions are met:
a. Management can demonstrate that it is in full control of the self-identification
process.
b. Acceptance is not automatic.
c. The process occurs only within limited areas of adjustment; and
21
d. Employees who self-identify must be from within the area where functions are
being eliminated and must be the incumbents of positions to be deleted.
Employees who are willing to volunteer must come from within the area where the
functions are being eliminated since the positions of those who self-identify must be
deleted. If this is not the case, the employee must not be subject to work force
adjustment unless it is the result of the alternation process.
Should more employees volunteer than are required, management must determine how
this will be resolved, in consultation with employee representatives. The established
method must not be arbitrary, nor seen to be arbitrary and employees should be made
aware of how the selection will be made before the method is actually applied. It is
suggested that any method developed address the future needs of the organization.
This could involve a formula based on any of the following, either alone or in
combination: critical skills; experience needed to perform the continuing functions; skills
necessary to meet future organizational needs; personal suitability; years of service;
etc.
If sufficient volunteers come forward, no further action is required. However, if there
are insufficient volunteers, management must conduct an assessment process to
identify, on the basis of merit, which employees will be retained to carry out the
continuing work and which employees will be subject to work force adjustment.
2.12 SELECTING EMPLOYEES FOR RETENTION AND LAY-OFF
Where the services of some but not all of the employees occupying positions with
similar or identical duties, classified at the same group and level within the area of
adjustment are no longer required, it may be necessary to conduct an assessment
process to identify those employees who will be retained in the organization. The
objective of the selection process is to identify, on the basis of merit, those employees
who are to be retained to carry out the continuing and future work of the organization.
Those who are not selected for retention will be subject to work force adjustment and
could potentially be laid-off. The definition of merit under the Public Service
Employment Act (PSEA) includes essential qualifications, and current or future asset
qualifications, operational requirements and organizational needs.
A separate selection process based on merit is required for each classification and
distinct function within the area of adjustment. However, a selection process does not
need to be conducted in the following situations:
a. All positions in the area of adjustment are scheduled for deletion on the same
date.
22
b. The work force adjustment results in the elimination of all affected positions
that are distinguishable from the remaining positions in the area of
adjustment.
c. Sufficient employees have indicated their willingness to accept a work force
adjustment option under Part VI of the WFAD/WFAA.
d. Sufficient employees have self-identified as willing to be declared surplus for
redeployment, to work-share, or to otherwise leave the organization; or
e. All affected employees seeking redeployment can be placed elsewhere at
their current group and level.
It should be noted that Section 21(3) of the Public Service Employment Regulations
(PSER) grants authority for management to use a selection process that combines a
combination of merit and seniority factors solely for the Ship Repair Group. With the
exception of the Ship Repair Group, seniority is not a factor in merit.
Managers must be prepared to discuss and explain the results of the selection process
to the affected employees. The employees who are not selected for retention will
become subject to the provisions of the WFAD/WFAA and may be potentially laid-off.
The employees who are not selected must be informed of their right to recourse to the
Public Service Staffing Tribunal (PSST). In accordance with this redress procedure,
the employees are to be advised in writing that they have 15 days from the day they are
so notified within which they may lodge a complaint with the PSST. This notification can
be included in the surplus letter.
More detailed information can be found in the PSC’s “Guidance Series - Selecting
employees for retention or lay-off”.
2.13 USE OF A FORMAL AFFECTED PERIOD
An affected employee is an indeterminate employee who has been informed that his or
her services will likely no longer be required because of a work force adjustment
situation. It is at the discretion of the delegated authority to formally grant an affected
period as defined in the WFAD/WFAA to employees who will be declared surplus and
provided with a GRJO or who will be offered the options under Part VI.
When represented employees are formally advised of their affected status in writing, the
appropriate union must be informed of the names and business addresses of the
employees within five working days of the notification. The information may be provided
using existing communication channels.
The delegated authority will review the status of each affected employee annually, or
23
earlier, from the date of initial notification of affected status and determine whether the
employee will remain in affected status or not. The affected employee must be notified,
in writing, within five working days of the decision.
2.14 NOTIFYING EMPLOYEES OF THE WFAD /WFAA PROVISIONS APPLICABLE
TO THEM
Once it has been determined which functions are to be eliminated, what provisions
employees will be subject to in terms of a GRJO or access to the options, employees
are to be formally notified by the delegated authority of the provisions of the
WFAD/WFAA that apply in their case.
Where a GRJO is available or predicted to be available, the employees are to be
declared surplus by the delegated authority and advised that they are being provided
with a GRJO. Again, employees in receipt of this guarantee do not have access to the
options under Part VI of the WFAD/WFAA. Employees provided with a GRJO will
remain in paid surplus status indefinitely until the RJO is made or until they are
appointed or deployed to another position. Where practicable, the RJO must be within
the employee's headquarters area. The sample letter at Annex 2-D is to be used for
situations where the GRJO is included with the surplus declaration, whereas Annex 2-E
provides a sample surplus letter to use when the GRJO will be provided at a later date.
Where the Deputy Minister has agreed that a GRJO cannot be provided, the employees
are not declared surplus but are offered the three options outlined in Part VI of the
WFAD/WFAA. Annex 2-F provides a sample letter that is to be issued by the delegated
authority for this purpose. The departure date under Options b) and c) is to be specified
in this letter as described in Section 2.16. A Work Force Adjustment Option Selection
Form (Annex 2-G) must also be included with this letter.
Preferably, these notices are to be personally delivered by management. Where this is
not possible, letters should be sent by confirmed delivery or signature service where
receipt can be confirmed.
Employees on leave without pay are to be administered in accordance with the
provisions outlined in Part 3 of this manual.
Employees covered by the WFAD must be given a copy of the Directive when they
offered the options or declared surplus. Those subject to the Appendix must be
reminded that the WFAA forms part of their collective agreement.
Employees remain covered by the provisions of the WFAD/WFAA that was in effect on
the day they were declared surplus or offered the options.
24
2.15 OPTION DECISION PERIOD
The employee must be provided with 120 calendar days to consider the options. At the
end of this option decision period, the employee must select one of the three options
and advise either their Civilian Human Resources Officer or their manager (as indicated
in their letter) of their choice at the latest on the day following the end of this decision
period. Those who do not select an option by the required date will be deemed to have
selected Option a) - 12-month surplus priority period in which to secure a reasonable
job offer.
Once an option has been selected, the employee cannot change his or her choice.
Similarly, once an employee has opted for the TSM or the Education Allowance, the
Department must honour these payments even if a reasonable job offer becomes
available. However, should the employee be willing to accept the position, both the
employee and management can agree to cancel the option selected in favour of
continued employment in the identified vacancy. Prior to the selection of an option in
writing, however, a reasonable job offer that is made during the decision period and that
does not require the employee to relocate invalidates the offer of the options.
Of those offered the options, only employees who select Option a) are declared surplus.
Attached at Annex 2-H is a sample surplus notice to be used for this purpose.
2.16 DEPARTURE DATES
Management is responsible for establishing the departure date of opting employees
who choose the TSM or the Education Allowance. This date is to be included with the
letter offering the options. The departure date can be as early as the day following the
end of the option decision period, or as late as 12 months from the end of the decision
period, depending on operational requirements. Only when specifically requested by
the employee and operationally feasible can the departure date be within the option
decision period. The departure date is established on the basis of when the employee
is no longer needed to continue to perform the function. As a result, the date specified
should coincide with the closure, relocation, or transfer to the new employer date for
those employees whose services are still required to that date.
Employees who have accepted Option b) or c) i) under Part VI must resign from the
Core Public Administration on the specified departure date. Under no circumstances is
this date to be delayed solely to enable the employee to receive additional benefits.
The departure date can only be extended for operational reasons and where the
employee agrees to remain.
Once resignations under Options b) and c)(i) are accepted by the responsible
departmental officer, they are binding on both parties. Notwithstanding, a resignation is
cancelled if the employee accepts other employment in the Core Public Administration
25
prior to the departure date, or if the position is no longer surplus to requirements and the
employee agrees to stay.
In the cases of PIL, Option b) and Option c) i), the employee relinquishes any priority
rights for reappointment upon acceptance of his or her resignation.
2.17 SEASONAL AND PART-TIME EMPLOYEES
Indeterminate seasonal employees can be affected by a work force adjustment during
both their on and off season. Part or all of their surplus period, therefore, can coincide
with their off season.
If an employee departs with the TSM or Education Allowance at the end of the season,
the window period during which that employee is subject to post-employment
restrictions will coincide with the off season. In other words, the period during which
repayment would be required begins immediately after the employee's departure, not
when the next season would have begun.
For seasonal and part-time employees, the TSM is pro-rated, based on the employee's
season or regularly scheduled hours of work during the 12 months prior to the
termination date. In cases where there is not a 12-month employment history at the
seasonal or part-time hours, the payment is pro-rated on the basis of the agreed upon
schedule.
2.18 ALTERNATION PROCESS
Alternation is a management controlled process that allows employees who have been
offered the options and who wish to continue working to be matched with unaffected
indeterminate employees (alternates) who are willing to resign from the Core Public
Administration in exchange for the TSM (option (b)) or the Education Allowance (option
(c)(i)). The use of alternates provides departments with the necessary flexibility to
minimize involuntary departures.
The identification of alternates can only be made during the option decision period.
Once the window is closed, no alternation is permitted. In addition, surplus notices
cannot be rescinded for the purpose of effecting an alternation. An alternation must
result in the permanent elimination of a function or a position.
In the alternation process, one individual directly replaces another. A series of
movements, or "domino effect", is not permissible. Exchanges will normally be within
DND but alternation can be across departmental lines. The receiving or hiring manager
makes the final decision as to what constitutes a match by determining whether the
affected employee is suitable for the position and whether the alternation will result in
retaining the skills required to meet the ongoing needs of the position. The opting
26
employee moving into the unaffected position must meet all the requirements for
appointment to the position, including the language requirements. If a suitable match
can be made, the employees are deployed into each other's positions. As the
incumbent of the position being eliminated, the alternate can then be offered the
options. The salary used to calculate the TSM entitlement is the salary the alternate
receives upon deployment into the surplus position. Before the alternation is finalized,
the employee must be informed on how any new salary rate will impact the TSM
received.
It must be emphasized that the placement of alternates in affected positions must result
in qualified people being retained and be consistent with the fiscal objective. There is
no guarantee that an alternate's request will be accommodated. The emphasis must
also be on the marketing of the affected employees and not on accommodating those
employees wanting to be alternates.
An alternate should be at the same or equivalent level as the affected employee.
Therefore, a person who moves into another individual's job for the purpose of
permitting an employee to continue working in the Core Public Administration is only
eligible for the TSM or the Education Allowance if:
a. The two people are deployed into each other's positions and the deployments
are effective the same day; and
b. The positions are considered equivalent. When the two positions are not of
the same group and level, alternation can still occur provided the positions
are considered equivalent for staffing purposes. Note that employees cannot
use salary-protected rates of pay to establish equivalent groups and levels for
purposes of identifying alternation opportunities.
For incumbent-based groups, where the basis for classification is not a position but the
productivity and achievement of the individual, alternation may occur between any two
individuals because the maximum rate is deemed to be the maximum of all positions.
Alternation between employees in incumbent-based and position-based systems is also
possible. In the case of a position-based affected employee and an incumbent-based
alternate, the salary maximum of the affected employee's classified position must be
within 6% of the maximum of the salary maximum of the alternate's current appointment
level, or the affected employee must be willing to request a voluntary downward
reclassification to a level that is within 6% of the maximum of that level. In the case of
an incumbent-based affected employee and a position-based alternate, the salary
maximum of the affected employee's current appointment level must be within 6% of the
maximum salary of the alternate's position in the position-based group, or the affected
employee must be willing to request a voluntary downward reclassification to a level that
is within 6% of the maximum of that position.
27
Lists of alternates can be maintained locally. Employees may be required to sign a
consent form to have their name included on alternate lists shared by various
organizations. In situations where there are no suitable alternates locally (either within
DND or other government departments) potential alternates can be considered in an
expanding geographical radius. Efforts must be made to minimize the relocation
expenses. When relocation does occur, expenses may be reimbursed to the affected
employee in accordance with the NJC Relocation Directive. However, the deployment
or transfer of the alternate is only a paper transaction and there is no intention on the
part of the Department to relocate the alternate employee. That employee is therefore
not entitled to reimbursement of relocation expenses. To avoid any misunderstanding,
the alternate employee's letter of offer on deployment or transfer should contain a
statement to this effect in cases where relocation expenses would normally be paid by
the department.
An employee on leave without pay may be an alternate only if that employee has a
position to offer. In other words, the position must not have been staffed
indeterminately in his or her absence, the leave period (of the same type of leave) must
not exceed one year; and the employee is expected to return.
When alternate situations occur within DND, the compensation and benefits specialists
are not to initiate a pay action to transfer the departing employee to the new Pay Office
and/or Pay List, although a position number change is required on the deployment date.
The calculations and the payments are to be completed by the compensation and
benefits specialist from the location of the departing employee, using the financial
coding from the position the employee is deployed to. The pay action to change the
financial coding to pay the TSM entitlements must be carefully timed in order to ensure
the salary continues to be charged to the correct salary wage envelope until the SOS
date. In other words, both specialists continue to administer their employees, using the
financial codes from the other location, until the employee staying reports to the new
place of duty.
In alternation situations involving employees from other departments, the compensation
and benefits specialists, in consultation with the other department, are to initiate a
Transfer In or Transfer Out pay action only after the SOS and the payments of the
benefits are finalized. Charges are to be transferred between the two departments.
2.19 EMPLOYEE COUNSELLING
The delegated authority is responsible for ensuring that all employees affected by a
work force adjustment are counselled throughout the process, as required by section
1.1.34 of the WFAD/WFAA. This counselling should include information on the effect of
work force adjustment on the employee, explanations and assistance concerning the
contents of the WFAD/WFAA, the role of the Department and other agencies in
28
redeployment, and assistance in preparing resumes and preparing for job interviews
etc. Support services may also include stress and career counselling sessions, and
pre-retirement seminars. It is the role of the Civilian Human Resources Officer to
provide continuing counselling for surplus employees and laid-off persons for the
duration of the priority period.
All expenditures relating to counselling services are the responsibility of the employee's
manager. For planning purposes, a figure of $1,000 per full-time-equivalent (FTE)
reduction is recommended to cover the cost of such services. This does not mean a
per person entitlement. The cost and type of counselling for each individual must be
tracked and is funded from local O & M budgets.
Employees should also be reminded of the availability of the Employee Assistance
Program (EAP). EAP Referral Agents are trained to assist employees with personal
concerns, including stress, financial, relationship or alcohol/drug problems. The
Referral Agents are familiar with local resources and can help employees find the
professional help they need. Costs to visit a community professional are the
responsibility of the employee; however, the services of health professionals may be
covered by insurance plans.
In those areas where a learning and career centre is operational, employees should be
reminded of their services. Reference to the centre may also be made in the
employee's affected and/or surplus letter.
Those employees offered the options under Part VI are to be provided with counselling
during the option decision window, including advice on the likelihood of finding
continuing employment in the Core Public Administration. Only employees who have
been offered the options are entitled to up to $600 for the purpose of obtaining financial
and job placement counselling services (section 6.3.6 of the WFAD/WFAA refers).
Fees will be reimbursed up to a maximum of $600 (including taxes) upon submission of
receipts and are the responsibility of the local manager. (Note – This amount may vary.
Check the applicable WFA policy.)
2.20 REDEPLOYMENT ACTIVITIES
Managers are responsible for ensuring that every effort is made to place affected and
surplus employees (those provided with a GRJO or who have selected Option a)) who
wish to continue working in the Core Public Administration.
The Public Service Commission (PSC) operates a priority administration system
whereby surplus employees and laid-off persons, as well as other priorities, are referred
to suitable vacancies in the Core Public Administration for which they are qualified or
could be retrained. Affected employees for whom placement is certain do not need to
29
be declared surplus unless it is necessary to facilitate the appointment, to extend the
provisions of the WFAD/WFAA in terms of retraining or salary protection, or to provide
for reinstatement priority status in the case of a lower level position.
To ensure surplus employees and laid-off persons are considered for redeployment
opportunities, the Civilian Human Resources Officer must:
a. Forward to the PSC the necessary documentation for surplus employees
and laid-off persons for inclusion in the priority administration system.
Surplus employees should be asked to sign the PSC consent form indicating
their willingness to be entered into the Priority Information Management
System (PIMS) of the PSC. The information will be used only for
redeployment and reporting purposes. Once signed, the consent form must
be maintained on the employee’s file.
b. Liaise with other federal government departments concerning employment
possibilities elsewhere in the Core Public Administration.
Surplus employees should specify to which locations they prefer to be relocated.
Efforts will be made to accommodate employees' preferences to the extent possible;
however, it is important that employees consider mobility to all locations and seriously
consider all referrals.
In order for management to secure a reasonable job offer, employees have the
responsibility to seriously consider all job opportunities presented to them. Failure to do
so can result in lay-off. Efforts will be made to try to accommodate employees' location
preferences, where possible. All cases where surplus employees refuse to be
considered for potential job opportunities presented to them, or restrict their mobility
thereby precluding redeployment, must be documented in writing. In addition,
management must counsel employees about their redeployment responsibilities to
ensure the employees are fully aware of the implications of their actions. A sample
Notice of Redeployment Responsibilities is provided at Annex 2-I. This letter should be
modified to suit the specific circumstances and should be issued as soon as it becomes
evident that an employee is not actively participating in the redeployment process.
2.21 APPOINTMENT
The appointment of a surplus employee should, wherever possible, be at a level
equivalent to that held by the employee.
To minimize lay-offs, a surplus employee can be appointed to a position with a lower
maximum rate of pay within the employee's preferred area of mobility even though
reasonable alternative employment may be available at the employee's current group
and level elsewhere. Normally, appointments to lower level positions will be restricted
30
to one or two levels lower than the position previously held by the surplus employee. A
surplus employee or a laid-off person appointed to a lower level position is entitled, for a
period of one year from the date of appointment, to a priority for reinstatement to a
position equivalent to their former group and level.
If surplus employees who are guaranteed a RJO are appointed to term positions, their
indeterminate status must be protected. This is done by making their appointment
indeterminate or by the use of a secondment or assignment rather than an appointment.
If term employment becomes available for employees who are surplus under Option a)
that extends beyond the end of the 12-month surplus period, the employee must still be
laid-off and will have to be appointed on a term basis in order to continue with the term
employment. In other words, the 12-month surplus period cannot be extended as a
result of term employment or a short-term assignment or secondment opportunity near
the end of the surplus period. If the assignment/term employment ends before the
expiry of the surplus period, the employee is to return to his or her former position for
the remainder of the surplus period.
If the term employment is for a period in excess of twelve months, attempts should be
made to have the receiving organization appoint the surplus employee on an
indeterminate basis to the term position. The indeterminate status must be protected
when appointed to the term position. This can only be done by appointing the employee
on an indeterminate basis. This means the surplus situation from the home
organization ceases and the receiving organization takes total responsibility for the
employee. This includes having to redeclare the employee surplus if necessary.
If the receiving organization is not willing to appoint the surplus employee on an
indeterminate basis, they may still appoint the employee on a term basis following the
lay-off of the employee at the end of the 12-month surplus period. Once an employee
has been laid-off, offers of term employment are treated as a separate employment
relationship that ends when the term does.
Surplus employees and laid-off persons are not excluded from meeting the language
requirements of bilingual imperative positions. As of 1 April 2004, all bilingual positions
are to be staffed on an imperative basis except where the Deputy Minister (for EX
positions) or the responsible Assistant Deputy Minister for all other positions has
approved the non-imperative staffing process.
2.22 RETRAINING
A surplus employee may be eligible for up to two years of retraining to facilitate
appointment to an alternative position identified by management. This retraining is
subject to the employee's willingness to relocate, if required. Therefore, where other
31
employment is not likely to be available, surplus employees must be considered for
retraining that will facilitate appointment to a specific position or to anticipated vacancies
where there is a shortage of qualified candidates and no other qualified persons with
priority status are available.
Most retraining will be on-the-job training, and must be conducted prior to appointment.
While on retraining, a surplus employee continues to be employed by the home unit/
department and is entitled to be paid in accordance with his or her current appointment.
For those provided with a GRJO, no extension to the surplus period is required to
accommodate a retraining plan as employees have no specified end date to their
surplus status which continues indefinitely until appointment. For those under
Option a), however, where retraining will continue beyond the scheduled lay-off date,
the surplus period is to be extended to permit continued retraining.
In addition, 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, such training to continue for one year or until
the date of appointment to another position, whichever comes first. Appointment to this
position will be subject to successful completion of the training.
A laid-off person may be eligible for up to two years of retraining where it will facilitate
appointment to a specific position, the person meets the essential qualifications for the
position, and there are no other qualified persons with a statutory priority available. As
the appointment of a laid-off person is from outside the Core Public Administration, the
employee is on probation for a period of 12 months, or the duration of the retraining,
whichever is greater. The length of the probationary period should be clearly specified
in the retraining agreement and letter of offer, including the fact that the employee will
be subject to rejection on probation if he/she is unsuccessful on retraining.
The delegated authority may authorize retraining for six months or less. Retraining for
long periods, not to exceed two years, requires the approval of the Level 1. The Level
1, however, has the authority to sub-delegate the approval of these retraining
agreements to the level deemed appropriate, but not lower than Level 3. The PSC must
be advised of any retraining proposal prior to its submission for approval, to ensure that
there are no qualified priorities available, and that the surplus employee is not referred
to other positions during the retraining period.
Before retraining commences in DND, a retraining plan should be prepared and signed
by the employee, the training supervisor, and the manager at the training and home
units. The retraining plan should include:
a. The starting date and the maximum period of retraining;
b. A breakdown of the estimated costs of the retraining (e.g. tuition, books,
32
temporary duty);
c. The learning objectives and skills to be acquired;
d. The name and title of the training supervisor;
e. The method and frequency of evaluation;
f. A commitment from the training unit to absorb the employee upon successful
completion of training;
g. In the case of a surplus employee, a statement to the effect that he/she will
not be marketed during the retraining period and should the employee be
unsuccessful in retraining, he/she will be returned to their unit/ department for
redeployment during the remainder of the surplus period and may be laid-off
at the end of the surplus period if the employer has been unable to make a
reasonable job offer.
Retraining opportunities may also be identified for employees, prior to being declared
surplus. In this case, the retraining plan should be drafted as outlined above so that it is
ready for signatures. In the case of an employee being offered the options, the
employee can be presented with the retraining opportunity as well. In the case of an
employee opting for Option a), the surplus letter is to state that the surplus period will be
extended at various intervals where the employee is performing satisfactorily under the
retraining agreement. Once the retraining plan is signed, it is forwarded to the Level 1
for approval (if in excess of six months of retraining). It is imperative that confirmation of
the plan be received during the option decision period so that if it is denied, the
employee still has the option of accepting Option b) or c).
Tuition and temporary duty costs associated with retraining are the responsibility of the
home unit and, therefore, the delegated authority must forecast retraining requirements
for his or her surplus employees and laid-off persons in the annual business plan. If the
necessary retraining funds are not available within the home unit, the Level 1 up to
which the unit is assigned is responsible for funding the retraining unless the receiving
unit is willing to assume the costs.
In accordance with Section 4.2.6 of the WFAD/WFAA, an employee who has opted for
Option a) and who has been unsuccessful in retraining may be laid-off at the end of the
surplus period, provided that the employer has been unsuccessful in finding the
employee a reasonable job offer.
2.23 MONITORING
DCEP is responsible for monitoring all work force adjustment situations and providing
33
statistical summaries to departmental senior managers and central agencies. It is
therefore critical that Civilian Human Resources Officers ensure that the names of all
surplus employees are entered into PIMS. The data will be used to monitor WFA
situations within the Department.
2.24 IMPACT OF REORGANIZATIONS
In a reorganization involving changes to the duties of a position, the manager must
determine, in consultation with Civilian Human Resource specialists, whether the
changes constitute a reclassification of an existing position or the creation of a new
position, causing a work force adjustment. To make this determination, the following
criteria need to be considered:
a.
The extent of change to the organizational context of the position.
b.
The extent of change to the essential outputs, the client services results or
key activities of the position.
c.
Whether the change in duties has caused the basic nature and/or the
purpose of the work to change.
d.
Whether job change has resulted in significantly different requirements for
education, experience or other qualifications; and
e.
Whether a position is unique or is one of a group of several positions of
the same occupational group and level.
A reorganization in which an encumbered position is abolished and a new one
established will normally be treated as a work force adjustment. Employees whose
positions are being abolished will be given prior consideration for any positions in the
new organization for which they could qualify, with or without retraining, before being
subject to a work force adjustment situation. If a suitable position is found, it may be
presented as a deployment opportunity. If the deployment is declined, the employee
may be declared surplus with the position included as a reasonable job offer at the time
of the surplus declaration. If the reorganization does result in a work force adjustment
situation with no opportunity for placement in the reorganized unit, it must then be
determined whether this employee can be provided with a GRJO elsewhere in the Core
Public Administration or offered the options.
2.25 IMPACT OF A RELOCATION OF A WORK UNIT
Where a work unit is to be physically relocated beyond what is considered to be normal
commuting distance according to local custom, the delegated authority must notify all
affected employees in writing of the relocation of their positions. In accordance with
34
Part III of the WFAD/WFAA, employees must be given six months, from the official date
of notification, to decide whether they wish to move with their position. This notification
must also advise the employee that he or she will be subject to WFA if the employee
decides not to relocate with the position. A sample Notice of Relocation of Work Unit is
provided at Annex 2-J. This notification period may be considered as an affected
period. If it is the employee's intention not to relocate with the position, this affected
period can be used to find other employment.
Nothing precludes the Department from offering the relocated position to employees in
receipt of a GRJO. The Department will endeavour to respect the employee's location
preferences by attempting to find alternative employment, other than the relocated job,
in the employee's preferred location. However, after having spent as much time as
operations permit in searching for another reasonable job offer for the employee, the
relocated position can be offered to the employee as their GRJO. Section 3.1.4 of the
WFAD/WFAA refers. When determining how long the search can continue before
offering the relocated job, consideration should be given to the time it would take to staff
the job in the new location should be employee decline this offer.
Situations where it may be appropriate not to provide a GRJO, and thereby provide
access to the options, include:

Where the position in the new location can be staffed by another employee
with priority status. In this case, the position in the new location can be
staffed without incurring relocation expenses while resolving the situation of
another priority employee.

Where a cost analysis of the situation indicates that the cost of relocating the
employee would exceed the cost of a TSM or Education Allowance, plus the
cost of recruiting/relocating someone else into the relocated position.

Where it is deemed unreasonable to relocate the employee in question to the
new location of the position.
Where the options have been offered, alternation is possible during the option decision
window to facilitate the placement of the employee in his/her preferred location. For
further information on the alternation process, please refer to section 2.18.
A sample surplus letter for relocation situations where it is the intent to offer the position
in the new location as the GRJO is provided at Annex 2-K. Where it has been decided
not to offer the position in the new location, either the standard surplus letters providing
a GRJO (other than the relocated position) or the letter offering the options can be used.
2.26 NOTICE OF LAY-OFF
35
Employees who are surplus as a result of accepting Option a) are provided with a
proposed lay-off date in their surplus letter in the event that no reasonable job offer is
found during the 12-month surplus period. Employees who are provided a GRJO and
who are offered a reasonable job offer at the time of their surplus declaration are also
provided with a proposed lay-off date in their surplus letter should the offer be refused.
Employees must be provided with a notice of lay-off at least one month prior to their
scheduled lay-off date. A sample Notice of Lay–off is provided at Annex 2-L.
When employees are declared surplus and provided with a GRJO on the prediction that
one will be available, there can be no proposed lay-off date stipulated in their surplus
letter because their surplus period continues indefinitely until an RJO is made or they
are appointed or deployed to another position.
Employees who refuse an RJO may be laid-off one month after the refusal (i.e. after
one month's notice) but not before six months after the surplus declaration date. In
other words, an employee who refuses a reasonable job offer two months into the
surplus period cannot be laid-off for another four months, whereas an employee who
refuses an offer after seven months of surplus can be laid-off after providing one
month's notice of lay-off. Again, the sample lay-off notice at Annex 2-L can be used for
this purpose.
Subject to operational requirements, the Level 3 may approve an employee's written
request that the scheduled lay-off date be advanced. This is referred to as accelerated
lay-off. In this instance, lay-off privileges and benefits take effect on the advanced date
of lay-off. Surplus employees with no specified lay-off date (those provided with a
GRJO) wanting to leave the Core Public Administration may also request to be laid-off
instead of resigning.
Should the employee's services in his or her position cease to be required prior to the
employee receiving an RJO, every effort must be made to provide the employee with
other work. Where the work is at a lower level, the employee must continue to be paid
at his or her current group and level and he or she must receive acting pay if performing
at a higher level. If alternative employment is not available and the employee is not
interested in accelerated lay-off, the employee must be paid until the scheduled lay-off
date. Under no circumstances can the lay-off date for those who are surplus under
Option a) be advanced without the employee's concurrence.
2.27 REIMBURSEMENT OF TSM
An employee who has received a TSM or an Education Allowance and who is
reappointed to that portion of the Core Public Administration specified in Schedules I
and IV to the Financial Administration Act may be subject to a requirement to reimburse
the Receiver General for Canada. If reappointment occurs within the period that
36
corresponds to the number of weeks on which the TSM (or TSM portion of the
Education Allowance) payment was based, the employee must reimburse an amount
equivalent to the number of weeks remaining between the date of the reappointment
and the end of the period for which the TSM was paid.
Therefore, an employee who received a TSM payment equivalent to 40 weeks of pay
will be subject to reimbursement if he or she is reappointed to the Core Public
Administration within 40 weeks from the resignation date.
The procedures for effecting recovery on any amounts due to the Crown are outlined in
the Directive on Terms and Conditions of Employment, Appendix B, Section 15. Note
that the amount of recovery is calculated on the rate of pay established on
reappointment and not the salary rate used in the lump sum calculations. The amount
of recovery must be reported as a debt due the Crown, using deduction code 540
"Other debts owing to the Crown". As the recovery must be made from the first
available monies and cannot be extended with a lower rate of recovery, it is important
that employees be made aware of the impact this will have on their take home pay.
2.28 REDRESS
The WFAD is deemed to be part of the collective agreements between the parties to the
National Joint Council (NJC). In cases of alleged misinterpretation or misapplication of
the Directive, the NJC grievance procedure will apply. The NJC has agreed to expedite
the redress process at any party's request in cases of dispute when an employee has
chosen or is deemed to have chosen Option a) of a 12-month surplus priority period in
which to secure a reasonable job offer.
The normal departmental grievance procedure applies to all employees covered by the
WFAAs and to all unrepresented and excluded employees.
In situations where some but not all of the employees will be retained in the
organization, complaints concerning the application of Section 21(1) of the Public
Service Employment Regulations (lay-off) are to be lodged with the Public Service
Staffing Tribunal (PSST). More detailed information can be found in the PSC’s
“Guidance Series - Selecting employees for retention or lay-off”.
37
PART 2 ANNEXES:
Annex 2-A
Guidelines for Deputy Minister Approval of WFA Activities
Annex 2-B
Request for Pay in Lieu of Unfulfilled Surplus Status
Annex 2-C
Notice of Lay-off for Employees Selecting Option c(ii)
Annex 2-D
Surplus Letter, GRJO included
Annex 2-E
Surplus Letter, GRJO Not Being Made at This Time
Annex 2-F
Letter Advising Employees of Options under Part VI
Annex 2-G
Option Selection Form
Annex 2-H
Surplus Notice for Employees Selecting Option a)
Annex 2-I
Notice of Redeployment Responsibilities
Annex 2-J
Notice of Relocation of Work Unit
Annex 2-K
Surplus Letter for Relocation of Work Unit (Intent to Offer Relocated Job
as GRJO)
Annex 2-L
Notice of Lay-off
38
Annex 2-A
GUIDELINES FOR DEPUTY MINISTER APPROVAL OF WORK FORCE
ADJUSTMENT ACTIVITIES
As stated in the Work Force Adjustment Directive (WFAD) and the Work Force
Adjustment Appendix (WFAA), it is the policy of the Treasury Board to maximize
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.
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 GRJO within the Core Public Administration. Only
those employees for whom the Deputy Head cannot provide the guarantee will have
access to transitional employment arrangements (as per Part VI of the WFAD and
WFAA).
For any proposed workforce adjustment activity (including alternative delivery initiatives
(ADI)) where indeterminate employees could be affected, it is necessary to obtain the
Deputy Minister's approval prior to proceeding with the activity. This approval is
required before any consultation with the unions or general meetings with employees.
Although specific details may not be available at this stage of the approval process, the
following information is required, as a minimum:





Unit and geographic location;
Reason for the work force adjustment situation;
Number of affected indeterminate employees by group and level;
Union affiliation; and
Expected date of WFA announcement.
The submission to the Deputy Minister must also include an indication of whether the
employees will be provided with a GRJO or offered the options under Part VI of the
WFAD/WFAA. The rationale should be based on the following factors:



availability of job opportunities in the current location and elsewhere in
DND;
likelihood of finding continued employment in the Core Public
Administration, generally within a one-year period, based on the Public
Service Commission’s Priority Information Management System
skills of affected employees;
39
Annex 2-A




mobility of employees;
possibility of retraining;
cost analysis; and
any other pertinent information.
The submission is to be signed by the Level 1 and forwarded to the Deputy Minister for
approval, through ADM (HR-Civ).
40
Annex 2-B
REQUEST FOR PAY IN LIEU OF UNFULFILLED SURPLUS PERIOD
DEMANDE DE RÉMUNÉRATION EN REMPLACEMENT DE LA PARTIE NON EXPIRÉE DE LA
PÉRIODE DE PRIORITÉ D'EXCÉDENTAIRE
I request your approval of my resignation, effective
. I understand that upon resignation, I will receive a
lump-sum payment equal to my regular pay from the date of my resignation to the end of my surplus period, up to a maximum of six
months and not to exceed the value of the TSM. I will be deemed to be laid off for purposes of severance pay and retroactive
remuneration only, and I will have no priority rights for reappointment. I understand that if I am subsequently appointed to a portion
of the Core Public Administration specified in Schedules I and IV to the Financial Administration Act during the period covered by
my lump-sum payment (excluding severance pay), I must inform that department that I am a former public servant in receipt of such
a payment, and that I must reimburse the Receiver General for Canada by an amount corresponding to my regular pay from the
date of re-appointment to the end of the period covered by the lump-sum payment (excluding severance pay) . I also understand
that if I subsequently enter into a service contract with a department or portion of the Public Service set out in Schedules I and II of
the Public Sector Compensation Act during the lump-sum payment period, I must inform the contracting department or agency that I
am a former public servant in receipt of such a payment. I further understand that I am subject to a potential earnings limit of
$5,000 in fees during the period represented by the lump sum.
Je vous demande d'approuver ma démission à compter du
. Je comprends qu'au moment de ma
démission, je toucherai un paiement forfaitaire correspondant à mon traitement normal pour la période allant de la date de ma
démission à la fin de ma période de priorité d'excédentaire, jusqu'à concurrence de six mois de traitement et sans excéder la valeur
de la mesure de soutien à la transition (MST). Je serai réputé(e) avoir été mis(e) en disponibilité pour les seules fins de l'indemnité
de départ et de la rémunération rétroactive et ne bénéficierai d'aucun droit de priorité pour ce qui est d'une nouvelle nomination. Il
est entendu que si, au cours de la période visée par le paiement forfaitaire (moins l'indemnité de départ), je suis employé(e) par un
ministère ou un secteur de l’administration publique centrale précisé à l'Annexe I et IV de la Loi sur la gestion des finances
publiques, je devrai, au moment de l'emploi ou avant, signaler au ministère ou à l'organisme que je suis un ancien fonctionnaire qui
a reçu un tel paiement, et rembourser au Receveur général du Canada une somme correspondant à la rémunération régulière
touchée à partir de la date de ma renomination et la date d'expiration de la période visée par le paiement forfaitaire (moins
l'indemnité de départ). Il est également entendu que si, au cours de la période visée par le paiement forfaitaire, je conclus un
marché de services avec un ministère ou un secteur de la fonction publique précisé aux Annexes I ou II de la Loi sur la
rémunération du secteur public, je devrai signaler au ministère ou à l'organisme contractuel que je suis un ancien fonctionnaire qui
a reçu un tel paiement. De plus, il est entendu que je suis assujetti(e) à la limite du salaire escompté de 5 000 $ pour les
honoraires des marchés de services que je pourrai conclure pendant la période visée par le paiement forfaitaire.
NAME and P.R.I.
NOM et C.I.D.P.
Signature
Date declared surplus
Date à laquelle le fonctionnaire a
été déclaré excédentaire
Date
Scheduled lay-off date
Date prévue de mise en
disponibilité
Proposed resignation date
Date de démission proposée
Amount:
$ _________________
Montant:
_________________ $
Period to be covered by lump-sum payment
Période visée par le paiement forfaitaire
Position Number
Numéro de poste
Group/Level
Groupe/Niveau
RECOMMENDATION FOR APPROVAL
Base/Unit
Base/Unité
RECOMMANDATION POUR APPROBATION
I agree with the above request and certify that the position will be deleted, the work has been discontinued, and no additional salary or
operating costs will be incurred in having the work done in any other way during the period covered.
Je conviens d'accepter la demande susmentionnée et certifie que le poste sera aboli, que les fonctions ont été supprimées, et
qu'aucun traitement ou frais de fonctionnement additionnels ne seront encourus pour faire exécuter le travail de quelque autre façon
pendant la période visée.
Signature: ___________________________________Position/Poste:______________________________________Date:______________
APPROVAL
APPROBATION
Signature: ___________________________________Position/Poste:_____________________________________Date:_______________
41
Annex 2-C
SAMPLE LETTER FOR EMPLOYEES ACCEPTING OPTION c) ii)
This letter is further to your notification of the options available to you and your selection
of Option c) ii) - an Education Allowance with a delay of your separation date following a
period of leave without pay.
A period of leave without pay has been approved from (date) to (maximum period of two
years) under this option. During this period of leave, you may continue to be a benefit
plan member and contribute both the employer and employee shares to the benefits
plans and the Public Service superannuation plan.
Under this option, you are required to provide proof of registration at a learning
institution within 12 months of the start of your leave without pay. Providing this
requirement is met, you will be laid-off on (day following end of LWOP period) in
accordance with the Public Service Employment Act. As a person who has been laidoff, you will be entitled to a lay-off priority for appointment to another position in the Core
Public Administration for a period of one year from the date of lay-off. The Department
of National Defence and the Public Service Commission will ensure you are considered
for suitable vacancies that become available during this period. As a result, it is your
responsibility to provide any information related to changes in your qualifications as well
as changes to your telephone number or mailing address.
Your lay-off status will cease upon indeterminate appointment or deployment to another
position in the Core Public Administration or 12 months after your lay-off date,
whichever comes first.
If proof of registration is not received within 12 months of the start of your leave without
pay period, you will be deemed to have resigned and your period of leave without pay
will be cancelled. You will be considered to be laid-off for purposes of severance pay
only. As a result, you will not be given priority consideration for positions in the Core
Public Administration.
In closing, I would like to wish you the best of luck in your scholastic endeavours.
To be signed by the delegated authority.
42
Annex 2-D
SAMPLE SURPLUS LETTER FOR EMPLOYEES GUARANTEED A
REASONABLE JOB OFFER (RJO) - RJO INCLUDED
The purpose of this letter is to notify you that due to (reason for the work force
adjustment), your position has been identified as surplus to departmental requirements.
As a result, you are being granted status as a surplus employee in accordance with the
Work Force Adjustment Appendix which forms part of your collective agreement.
(Note 1)
A selection process was conducted in order to determine which employees were to be
declared surplus. Should you wish to lodge a complaint to the Public Service Staffing
Tribunal regarding the results of this process, you must do so within fifteen days of this
notification. (Note 2)
OR
As an employee being declared surplus, you may lodge a grievance against this
decision in accordance with the terms of your applicable collective agreement (Note 2)
However, I am pleased to advise you that alternative employment has been found for
you. The attached letter of offer constitutes a reasonable job offer. If you decline this
offer and no other employment can be found for you, you will be laid-off six months from
today on (date). You will be notified one month prior to this lay-off date. As a person
who has been laid-off, you would be entitled to a lay-off priority for appointment to
another position in the Core Public Administration for a period of one year from the date
of lay-off.
Should you wish to leave the Core Public Administration before (lay-off date), you may
request that the date of your lay-off be advanced instead of resigning. Lay-off benefits
and entitlements would then take effect on the actual date of lay-off.
(Name of designated Civilian Human Resources Officer) has been identified as your
contact for all human resources matters and can be reached at (telephone number) if
you have any questions relating to your surplus declaration or this offer of employment.
Your Compensation and Benefit Specialist, (name and phone number), is also available
to provide you with information concerning your benefit entitlements. Should you have
questions in regards to your pension entitlement/options, please consult the Public
Service Pension Center at 1-800-561-7930 or by email at
pensioncentre.centredespensions@pwgsc-tpsgc.gc.ca
A number of other services are available through the Department that may prove helpful
to you as a surplus employee. These services include work force adjustment
counselling, financial and job placement counselling, and the Employee Assistance
43
Annex 2-D
Program (EAP). Your Civilian Human Resources Officer can provide you with
information on how to access these services. I would encourage you to make use of
them in making your decision.
Please sign the attached consent letter stating your willingness to have your personal
information entered into the Priority Information Management System (PIMS) of the
Public Service Commission and return it to your Civilian Human Resources Officer.
Although I sincerely regret the necessity of declaring you surplus, I trust that this offer of
continuing employment will be viewed as a favourable alternative.
To be signed by the delegated authority.
Note 1: Replace with "in accordance with the Work Force Adjustment Directive which is
enclosed”, as applicable.
Note 2: Select the appropriate paragraph for the situation. Use the first when the
employee is declared surplus as a result of a selection process in accordance with
PSER 21(1). The second paragraph is used when an employee is in a unique position
that is surplus to requirements or all employees of similar positions are being declared
surplus.
44
Annex 2-E
SAMPLE SURPLUS LETTER FOR EMPLOYEES GUARANTEED A
REASONABLE JOB OFFER (RJO) - RJO NOT BEING MADE AT THIS
TIME
The purpose of this letter is to notify you that due to (reason for the work force
adjustment), your position has been identified as surplus to departmental requirements.
As a result, you are being granted status as a surplus employee in accordance with the
Work Force Adjustment Appendix which forms part of your collective agreement. .
(Note 1)
A selection process was conducted in order to determine which employees were to be
declared surplus. Should you wish to lodge a complaint to the Public Service Staffing
Tribunal (PSST) regarding the results of this process, you must do so within fifteen days
of this notification. (Note 2)
OR
As an employee being declared surplus, you may lodge a grievance against this
decision in accordance with the terms of your applicable collective agreement (Note 2)
In accordance with the Work Force Adjustment Appendix (or Directive), the Deputy
Minister is providing you with a guarantee of a reasonable job offer. As a result, you are
guaranteed at least one reasonable job offer during your surplus period, provided you
are mobile and retrainable. The Department of National Defence, with the assistance of
the Public Service Commission, is committed to providing you with other employment.
To assist in these efforts, please submit an updated résumé and sign the attached
consent letter stating your willingness to have your personal information entered into the
Priority Information Management System (PIMS) of the Public Service Commission and
return them to your Civilian Human Resources Officer.
Without your active participation and serious consideration of opportunities presented to
you, the Department will be unable to fulfil its commitment to guarantee alternative
employment for you. If you refuse a reasonable job offer, refuse to be referred to
positions which could lead to a job offer, or restrict your mobility thereby precluding
redeployment, you can be subject to lay-off with one-month notice. This lay- off,
however, cannot occur before six months from the date of this letter. As a person who
has been laid-off, you would be entitled to a lay-off priority for appointment to another
position in the Core Public Administration for a period of one year from the date of layoff.
Should you wish to leave the Core Public Administration, you may request to be laid-off
instead of resigning from the Core Public Administration to benefit from lay-off
45
Annex 2-E
entitlements.
(Name of designated Civilian Human Resources Officer) has been identified as your
contact for all human resources matters and can be reached at (telephone number) if
you have any questions. Your Compensation and Benefit Specialist, (name and phone
number), is also available to provide you with information concerning your benefit
entitlements. Should you have questions in regards to your pension
entitlement/options, please consult the Public Service Pension Center at 1-800-5617930 or by email at pensioncentre.centredespensions@pwgsc-tpsgc.gc.ca
A number of other services are available through the Department that may prove helpful
to you as a surplus employee. These services include work force adjustment
counselling, financial and job placement counselling, and the Employee Assistance
Program (EAP). Your Civilian Human Resources Officer can provide you with
information on how to access these services.
Although I sincerely regret the necessity of declaring your present position surplus, I am
confident that an alternative position will be identified for you in the near future.
To be signed by the delegated authority.
Note 1: Replace with "in accordance with the Work Force Adjustment Directive which is
enclosed”, as applicable.
Note 2: Select the appropriate paragraph for the situation. Use the first when the
employee is declared surplus as a result of a selection process in accordance with
PSER 21(1). The second paragraph is used when an employee is in a unique position
that is surplus to requirements or all employees of similar positions are being declared
surplus.
46
Annex 2-F
SAMPLE LETTER TO EMPLOYEES OFFERED OPTIONS UNDER
PART VI OF THE WFAD/WFAA
I regret to inform you that your position has been identified as surplus to requirements
due to (reason for the work force adjustment).
A selection process was conducted in order to determine which employees were to be
offered the options. Should you wish to lodge a complaint to the Public Service Staffing
Tribunal (PSST) regarding the results of this process, you must do so within fifteen days
of this notification. (Note 1)
OR
As an employee being declared surplus, you may lodge a grievance against this
decision in accordance with the terms of your applicable collective agreement. (Note 1)
As there is no other employment currently available for you, nor can we predict
employment availability for you within the foreseeable future, the Department cannot
provide you with a guarantee of a reasonable job offer. In accordance with the Work
Force Adjustment Appendix which forms part of your collective agreement, the following
options are therefore available to you: (Note 2)
(a)
A 12-month paid surplus priority period in which to secure a reasonable job offer
within the Core Public Administration, followed by lay-off if you have not been
appointed or deployed to another position during that period. If you refuse a
reasonable job offer, you can be laid-off one month after the refusal, but not
before six months after you are declared surplus. If you wish to resign before
the end of the 12-months surplus period, you can request Pay in Lieu of
Unfulfilled Surplus Period (PIL) for the balance of the surplus period, up to a
maximum of 6 months' pay. Please note that the amount of PIL cannot exceed
the value of the Transition Support Measure (TSM) that you would have
received had you chosen this option. A request for PIL can only be approved if
your work can be discontinued on your resignation date and no additional costs
will be incurred in having your work done in any other way.
OR
(b)
A Transition Support Measure (TSM) which is a cash payment based on your
years of service and paid at your substantive level, in exchange for your
resignation from the Core Public Administration. The TSM can be paid in one or
two lump-sum amounts over a maximum period of two years.
47
Annex 2-F
OR
(c)
An Education Allowance which is a TSM plus an amount of not more than
$11,000 (Note 3) for reimbursement of receipted expenses for books,
mandatory equipment and tuition at a recognized learning institution.
Employees who are represented by the Professional Institute of the Public
Service of Canada (PIPSC) may be eligible for an additional $2,000 for postgraduate training. The allowance is payable in one or two lump-sum payments
over a maximum two-year period. In choosing this option, you may opt to either:
i)
resign on the specified departure date but be considered to be laid-off for
purposes of severance pay; or
ii)
delay your separation date and go on Leave Without Pay for a maximum
period of two years while attending a learning institution. During this
period, you may continue to be a benefit plan member and contribute both
the employer and employee shares to the benefit plans and the Public
Service superannuation plan. Following the period of leave, you would be
laid-off, and as a result, enjoy priority consideration for positions in the
Core Public Administration for a period of one year. If you do not submit
proof of registration within 12 months after starting your leave, you will be
deemed to have resigned and be considered to be laid-off for purposes of
severance pay only.
You have a 120-day decision period to consider these options. During this time,
counselling and advice on redeployment opportunities will be provided to help you make
your decision. You are also entitled up to $600 (Note 3) for the purpose of obtaining
financial and job placement counselling services. I must inform you, however, that
should you receive a reasonable job offer prior to selecting an option, the options will no
longer be available to you.
Your decision in writing, using the attached form, must be submitted to (Civilian Human
Resources Officer or Manager) no later than (day following the end of the decision
period). Once you make your choice, you cannot change options. If you fail to select
an option, you will be deemed to have selected Option a) – a 12-month surplus priority
period in which to secure a reasonable job offer.
You will only be declared surplus if you accept Option a). If you decide to accept Option
b) or c)i), you must resign on a date determined by management. Your departure date
if you select either of these two options will be (date determined by management). This
date will also be the date of commencement of your Leave Without Pay period if you
select Option c)ii).
Should you have questions in regards to your pension entitlement/options, please
48
Annex 2-F
consult the Public Service Pension Center at 1-800-561-7930 or by email at
pensioncentre.centredespensions@pwgsc-tpsgc.gc.ca
If it is your wish to remain in the Core Public Administration you may be able to
exchange positions with another employee who is not affected by work force reductions
but who wants to take advantage of one of the options as an alternate. This exchange,
however, can only occur during the option decision period and if you meet the qualifying
criteria of the alternate's position. It is, therefore, important for you to inform your
Civilian Human Resources Officer or your Manager as soon as possible if you wish to
continue working in the Core Public Administration so that attempts may be made to
locate a suitable alternate.
You are the person who will ultimately know which option is best for you, based on your
personal circumstances. However, your Civilian Human Resources Officer, (name and
phone number), can assist you in making your decision by providing more information
on all the options and addressing any questions or concerns you may have. Your
Compensation and Benefit Specialist, (name and phone number), is also available to
provide you with information concerning your benefit entitlements. A number of other
services are available through the Department that may prove helpful to you during this
period. These services include work force adjustment counseling, financial and job
placement counseling services and the Employee Assistance Program (EAP). Your
Civilian Human Resources Officer can provide you with information on how to access
these services. I would encourage you to make use of them in making your decision.
Once again, I would like to express my sincere regret for the necessity of this action.
I hope, however, the options presented to you will be of value and assistance to you.
To be signed by the delegated authority.
Note 1: Select the appropriate paragraph for the situation. Use the first when the
employee is declared surplus as a result of a selection process in accordance with
PSER 21(1). The second paragraph is used when an employee in a unique position
that is surplus to requirements or all employees of similar positions are being declared
surplus.
Note 2: Replace with "in accordance with the Work Force Adjustment Directive which is
enclosed”, as applicable.
Note 3: Amount may vary. Check the wording of the applicable WFA policy.
49
Annex 2-G
WORK FORCE ADJUSTMENT OPTION SELECTION FORM
EMPLOYEE INFORMATION
Name:
PRI:
Group/Level:
Command/Group:
Base/Directorate:
Unit:
Position No:
I select the following option:

a) 12-month surplus priority period in which to secure a reasonable job offer within the Core Public Administration, followed by lay-off if I
have not been appointed or deployed to another position during that period
OR

b) Transition Support Measure - a cash payment based on my years of service and paid at my substantive level, in exchange for my
resignation from the Core Public Administration. In accepting this option, I agree to resign on the following departure date as specified by
management ____________________.
OR

c) Education Allowance - a Transition Support Measure plus an amount of not more than $11,000 for reimbursement of receipted
expenses for books, mandatory equipment and tuition at a recognized learning institution. In selecting this option, I further opt to:
 (i) resign on the following departure date as specified by management ____________________.
OR
 (ii) go on leave without pay on the departure date specified by management for a maximum period of two years, after which I will be
laid-off in accordance with the Public Service Employment Act and given priority consideration for positions in the Core Public Administration for
which I am qualified for a period of one year. If I fail to submit proof of registration at a learning institution 12 months after starting my leave without
pay period, I will be deemed to have resigned but be considered to be laid-off for purposes of severance pay.
TERMS AND CONDITIONS
 If you fail to submit your choice of option, in writing, by the date specified in the letter notifying you of your options, you will be deemed to have
selected Option a).
 You are entitled to counseling and advice on redeployment opportunities to help you with your decision.
 Once you select an option, you will not be able to change your choice.
 If a reasonable job offer is made to you prior to you submitting your selection in writing, the options are no longer available to you.
 If you opt for Option b) or c) and are subsequently reappointed to that portion of the Core Public Administration specified in Schedules I and IV
of the Financial Administration Act, you must reimburse the Receiver General for Canada by an amount corresponding to the period from the
effective date of such reappointment to the end of the original period for which the TSM or Education Allowance was paid.
Employee's signature:
Date signed:
MANAGEMENT CERTIFICATION
I hereby certify that this employee:
 Is an indeterminate employee whose position has been identified as surplus to requirements within the meaning of the Work Force Adjustment
Directive or Work Force Adjustment Appendix ;
 Is not in receipt of a guarantee of a reasonable job offer;
 Has not received a reasonable job offer prior to written selection of an option;
 Has selected this option within the specified decision period;
 Has not accepted an offer of contiguous employment with the new service provider in the case of an alternative delivery initiative;
 Is not on leave without pay in excess of 12 months; and
 Is not a member of the Executive Group (EX) or a DS 7(a), 7(b) or 8.
Responsible Manager – Signature will also signify acceptance of resignation for Option b) and c)(i)
Signature:
Date:
Delegated Authority Authorization
Signature:
Date:
2011
50
Annex 2-H
SAMPLE SURPLUS LETTER FOR EMPLOYEES WHO SELECTED
OPTION a)
Further to the letter notifying you of your options and your selection of Option a) 12-month surplus priority period in which to secure a reasonable job offer, you are being
granted status as a surplus employee for a period of 12 months from (date) to (date) in
accordance with the Work Force Adjustment Appendix (or Directive). (Note)
Since you have selected a 12-month surplus priority period in which to secure a
reasonable job offer, the Department and the Public Service Commission (PSC) will
endeavor to find alternative employment for you during your surplus period. To assist
the Department and the PSC in their efforts to identify employment opportunities for
you, please submit to your Civilian Human Resources Officer an updated résumé as
soon as possible. As a surplus employee seeking redeployment, you have the
responsibility of seriously considering any job opportunity presented to you and to
actively search for other employment.
Please sign the attached consent letter stating your willingness to have your personal
information entered into the Priority Information Management System (PIMS) of the
Public Service Commission and return it to your Civilian Human Resources Officer.
If you are not appointed or deployed to another position during your 12-month paid
surplus period, you will be laid-off on (day following end of surplus period) in
accordance with the Public Service Employment Act. If you refuse a reasonable job
offer, you can be laid-off one month after the refusal, but not before six months from the
date of this letter. As a person who has been laid-off, you would be entitled to a lay-off
priority for appointment to another position in the Core Public Administration for a period
of one year from the date of lay-off. If you are successful in obtaining employment
outside the Core Public Administration before (lay-off date), you may request that the
date of your lay-off be advanced instead of resigning. Lay-off benefits and entitlements
would then take effect on the actual date of lay-off.
If you wish to resign before the end of the 12-month surplus period, you can request
Pay in Lieu of Unfulfilled Surplus Period (PIL) for the balance of your surplus period, up
to a maximum of 6 months' pay. Please note that the amount of PIL cannot exceed the
value of the Transition Support Measure that you would have received had you chosen
this option. A request for PIL can only be approved if your work can be discontinued on
your resignation date and no additional costs will be incurred in having your work done
in any other way.
(Name of designated Civilian Human Resources Officer) has been identified as your
contact for all human resources matters and can be reached at (telephone number) if
you have any questions. Your Compensation and Benefit Specialist, (name and phone
number), is also available to provide you with information concerning your benefit
51
Annex 2-H
entitlements. Should you have questions in regards to your pension
entitlement/options, please consult the Public Service Pension Center at 1-800-5617930 or by email at pensioncentre.centredespensions@pwgsc-tpsgc.gc.ca
A number of services are available through the Department that may prove helpful to
you as a surplus employee. Your Civilian Human Resources Officer can provide you
with information on how to access these services.
Please accept my best wishes for success in your search for alternative employment.
To be signed by the delegated authority.
Note: If the employee fails to select an option by the end of the option decision period,
this paragraph is to be amended as follows:
"Further to the letter notifying you of your options and your failure to select one of the
options offered within the specified decision window, you have been deemed to have
selected Option a) - a 12-month surplus priority period in which to secure a reasonable
job offer. As a result, you are being granted status as a surplus employee for a period
of 12 months from (date) to (date) in accordance with the Work Force Adjustment
Appendix (or Directive)."
52
Annex 2-I
SAMPLE NOTICE OF REDEPLOYMENT RESPONSIBILITIES FOR
EMPLOYEES PROVIDED WITH A GRJO
Further to my letter of (date) advising you of your surplus status, I would like to remind
you of certain provisions of the Work Force Adjustment Appendix (or Directive, as
applicable) that apply and directly affect your situation.
In accordance with the Work Force Adjustment Appendix (or Directive), you have been
provided with a guarantee of a reasonable job offer. Your surplus status will continue
until one such offer is made, provided you are mobile and retrainable. While the
Department is committed to its redeployment efforts on your behalf, the ultimate
responsibility for success rests with you. The Work Force Adjustment Appendix (or
Directive) places upon you the responsibility to demonstrate interest in available
positions and to seriously consider job opportunities presented. Without your
participation, management cannot fulfil its obligation to guarantee alternative
employment for you.
Our departmental records indicate that (you were not interested in being considered for
a specific employment opportunity and/or your mobility is restrictive), thereby limiting the
likelihood of obtaining alternative employment within the Department of National
Defence or other government departments. I would encourage you to participate more
actively in the redeployment process. Failure to seriously consider alternative
employment opportunities presented to you could lead to your lay-off from the Core
Public Administration.
I trust you will understand that my position is to see you successfully appointed to
another position for which you are qualified and to that end, I hope that you will take
advantage of every opportunity made available to you in the future.
To be signed by the delegated authority.
53
Annex 2-J
SAMPLE NOTICE OF RELOCATION OF A WORK UNIT
The purpose of this letter is to notify you of the relocation of your work unit to (location)
effective (relocation date). As required by Part III of the Work Force Adjustment
Appendix, which forms part of your collective agreement (see Note), you must indicate
by (six months from date of this letter) whether you wish to move with the position or
be treated as if you were subject to a work force adjustment situation.
If you decide to relocate with your unit, you will be eligible to entitlements described in
the National Joint Council Relocation Directive which can be found at http://www.njccnm.gc.ca/directive/index.php?did=6&lang=eng&merge=2.
If you decide not to relocate to (location), management, after having considered all
relevant factors, will either proceed with a guarantee of a reasonable job offer in the
Core Public Administration, or offer access to the options outlined in Part VI of the
Appendix (or Directive, as applicable). This decision will be based on the likelihood of
alternative employment being available for you.
Should you receive a guaranteed reasonable job offer, the Department will try and
accommodate your preference for possible work locations. However, if no reasonable
job offer can be found in your preferred locations, your relocated position may
eventually be offered to you as a reasonable job offer under the [WFAA or WFAD].
Should you refuse a reasonable job offer, you will be laid off in accordance with the
Public Service Employment Act.
If you do not receive the guarantee of a reasonable job offer, you will have a choice of
the following three options:
a) a 12-month paid surplus period to find another position in the public service. If
unsuccessful, you are laid-off at the end of your surplus period.
b) a Transition Support Measure (TSM) that is a lump-sum payment based on years of
service in the public service.
c) an Education Allowance equivalent to the TSM plus up to $11,000 to cover the costs
of tuition, books and mandatory equipment.
You are the person who will ultimately know whether to relocate with your unit or not
based on your personal circumstances. However, your Manager or Civilian Human
Resources Officer, and your union representative can assist you in making your
decision by addressing your questions. Please indicate your decision by completing the
section at the bottom of this letter and return it to (Name of designated Civilian
Human Resources Officer) by (date).
I regret the necessity of this action and trust that the above information will help you in
54
Annex 2-J
making your decision.
To be signed by the delegated authority
(Name and position number of employee)


I wish to relocate to ______________________ with my work unit.
I do not wish to relocate to ______________________ and I understand that I
will be treated as if I am subject to a work force adjustment situation.
_________________________________
Signature
______________
Date
Note: Replace with "As required by Part III of the Work Force Adjustment Directive
which is enclosed”, as applicable.
55
Annex 2-K
SAMPLE SURPLUS LETTER IN THE CASE OF A RELOCATION OF A
WORK UNIT WHERE RELOCATED JOB COULD BE THE GRJO
The purpose of this letter is to notify you that due to your decision not to relocate to
(location) with your position, you are being granted status as a surplus employee in
accordance with the Work Force Adjustment Appendix (or Work Force Adjustment
Directive).
As an employee being declared surplus, you may lodge a grievance against this
decision in accordance with the terms of your applicable collective agreement
In accordance with the Work Force Adjustment Appendix which forms part of your
collective agreement, you are being provided with a guarantee of a reasonable job offer
(Note). The Department of National Defence, with the assistance of the Public Service
Commission, is committed to providing you with other employment. To assist in these
efforts, please submit an updated résumé to your Civilian Human Resources Officer by
(date).
Please sign the attached consent letter stating your willingness to have your personal
information entered into the Priority Information Management System (PIMS) of the
Public Service Commission and return it to your Civilian Human Resources Officer.
As an employee affected by a relocation of a work unit, we do have alternative
employment for you in the form of your current position in the new location. As you
have already indicated that you do not wish to relocate with this position, the
Department will endeavour to respect your location preferences by attempting to find
alternative employment in your location preference area. It is our intention, however,
should no other redeployment opportunities be available, and having spent as much
time as operations permit searching for another redeployment opportunity, to offer you
the position in the new location as your guaranteed reasonable job offer. As a result,
should other employment not be found for you by (date), your current position in the
new location will be offered to you as your reasonable job offer.
As a surplus employee, you have the responsibility to seriously consider any job
opportunity presented to you and to actively search for other employment. If you refuse
a reasonable job offer, refuse to be referred to positions that could lead to a job offer, or
restrict your mobility thereby precluding redeployment, you will be subject to lay-off with
one month's notice. This lay-off, however, will not occur before six months from the
date of this letter. As a person who has been laid-off, you would be entitled to a lay-off
priority for appointment to another position in the Core Public Administration for a period
of one year from the date of lay-off.
56
Annex 2-K
Should you wish to leave the Core Public Administration, you may request to be laid-off
instead of resigning to benefit from lay-off entitlements.
(Name of Civilian Human Resources Officer) has been identified as your contact for
all human resources matters and can be reached at (telephone number) if you have
any questions. Your Compensation and Benefit Specialist, (name and phone
number), is also available to provide you with information concerning your benefit
entitlements. Should you have questions in regards to your pension
entitlement/options, please consult the Public Service Pension Center at 1-800-5617930 or by email at pensioncentre.centredespensions@pwgsc-tpsgc.gc.ca
A number of other services are available through the Department that may prove helpful
to you as a surplus employee. These services include work force adjustment
counselling, career counselling, and the Employee Assistance Program (EAP). Your
Civilian Human Resources Officer can provide you with information on how to access
these services.
Although I sincerely regret the necessity of declaring you surplus, I am hopeful that
suitable alternative employment will be located for you in the near future.
To be signed by the delegated authority.
Note : Replace with "In accordance with the Work Force Adjustment Directive, which is
enclosed”, as applicable.
57
Annex 2-L
SAMPLE NOTICE OF LAY-OFF
Further to my letter of (date) in which you were granted status as a surplus employee,
this will advise you that your services will not be required beyond (date one month
from date this notification is received).
OR
Further to my letter of (date) in which you were granted status as a surplus employee
for a period of 12 months following your selection of Option a) under Part VI of the Work
Force Adjustment Appendix (or Directive, as applicable, this will confirm that your
services will not be required beyond (date one month from date of this notification
and one month prior to end of 12-month priority period).
If all efforts to redeploy you to another position in the Core Public Administration before
this date prove unsuccessful, you will be laid-off on that date. For one year from the
date on which you are laid-off, you will be entitled to a statutory priority for consideration
for appointment to any position in the Core Public Administration for which, in the
opinion of the Public Service Commission (PSC), you are qualified. The PSC and the
Department will ensure you are considered for suitable vacancies during this one-year
period. For this reason, it is important that you advise the PSC and (name of Civilian
Human Resources Officer) of any change in your telephone number or mailing
address. You will also be eligible to enter any competition for which you would have
previously been eligible as an employee.
Your lay-off status will cease upon indeterminate appointment to another position in the
Core Public Administration, or one year from your lay-off date, whichever comes first.
Failing reappointment, your personal file and records will remain with the Department
for a period of two years, after which time they will be forwarded to the National
Archives in Ottawa for retention. Should you require any assistance or information in
relation to your employment in the Core Public Administration in the future, please
contact (name and number).
I can assure you that the Department of National Defence and the PSC will continue to
assist you in finding a suitable position prior to your lay-off date. Of course, should our
combined efforts be successful between now and then, lay-off measures will not be
necessary.
In closing, I would like to thank you for your service to the Department and this unit and
assure you that you will continue to receive all possible assistance.
To be signed by the delegated authority.
58
PART 3 - ADMINISTRATION OF EMPLOYEES ON LEAVE WITHOUT
PAY (LWOP) AND WHO ARE AFFECTED BY WORK FORCE
ADJUSTMENT SITUATION
3.1 EMPLOYEES ON LWOP FOR MORE THAN 12 MONTHS AND POSITION
STAFFED INDETERMINATELY
Employees on LWOP for more than one year whose jobs have been staffed
indeterminately on or after June 1, 1993, are entitled to a leave of absence priority
under Section 41(1) of the Public Service Employment Act (PSEA). If the employees
are not appointed during the priority period, their employment is terminated in
accordance with the PSEA and there is no need to invoke the provisions of the
WFAD/WFAA. If the position becomes surplus to requirements, only the current
incumbent is subject to the WFAD/WFAA, not the employee on LWOP.
3.2 EMPLOYEES ON LWOP AND POSITION NOT STAFFED INDETERMINATELY
Employees on LWOP whose jobs have not been staffed indeterminately and who are
affected by a work force adjustment situation should be notified at the same time as all
other affected employees in the unit. In this notification, the employees should be
advised that upon their return to work at the end of their scheduled leave, a
determination will be made as to whether a GRJO is available or not. If the end of the
scheduled leave is after the expiry date of the WFAD/WFAA, they will be treated in
accordance with the terms of the WFAD/WFAA in effect at that time. Enclosed at
Annex 3-A is a sample letter of notification that should be modified to suit the
circumstances of the case.
In situations where an employee is incapable of returning to work (e.g. for medical
reasons), other methods of termination should be pursued such as medical retirement
or release for cause under the Financial Administration Act (FAA).
Requests from employees to return to work immediately or prior to the end of the
scheduled leave should only be approved by the manager where there is work and the
necessary funds, or where there is another job available to which the employee can be
redeployed. Requests must not be granted for the sole purpose of giving the
employees access to the options under Part VI of the WFAD/WFAA.
While employees do have the right to return to work at the end of their scheduled leave,
they must be physically fit to do so, and they should return to the unit from which they
took the leave. Where the unit or base has closed, or where the position no longer
exists, alternate arrangements will have to be made to absorb the employee back into
59
the workforce, pending the determination of whether a GRJO is available or not.
Once the Level 3 has notified employees on LWOP that they are affected, it is important
that their situations be monitored closely. The employees should be contacted prior to
the end of the scheduled leave (at least six months prior to the end of the leave, where
possible) to confirm whether they intend to return to work, or will be capable of returning
to work if the leave is for medical reasons. If the employees intend to return, efforts
should commence immediately to identify alternate employment for them. In situations
where a GRJO will not be available, or is not expected to be available during the
foreseeable future, the procedures in effect at that time must be followed for obtaining
approval to offer the options under Part VI. The submission should only be made once
the employee has actually returned from leave.
Every effort should be made to place employees on LWOP for relocation of spouse
during the relocation priority period. The employees should only be declared surplus
during the actual leave period to facilitate retraining or effect salary protection. If
placement efforts are unsuccessful and the employees have not found alternate
employment in the Core Public Administration by the end of the scheduled leave, the
employees can either resign or be treated under the WFAD/WFAA upon returning to the
work unit from which they took the leave.
PART 3 ANNEX:
Annex 3-A
Sample Notification Letter to Employees on LWOP
60
ANNEX 3-A
SAMPLE NOTIFICATION LETTER TO EMPLOYEES ON LWOP
The purpose of this letter is to notify you that due to (reason for the work force
adjustment), your position has been identified as surplus to departmental requirements.
Under the terms of the current Work Force Adjustment Appendix which forms part of
your collective agreement (Note 1), you must either be provided with a guaranteed
reasonable job offer (GRJO) within the Core Public Administration, or where this is not
feasible, Deputy Minister approval must be obtained to offer you the options under Part
VI of the WFAA (or WFAD, as applicable). As you are currently on extended leave
without pay, the determination of whether a GRJO is available or not will be made when
you return to work at the end of your scheduled leave. If the end of your leave extends
beyond the expiry date of the current WFAA (or WFAD), you will be treated in
accordance with the terms of the WFAA (or WFAD) in effect at that time.
A selection process was conducted in order to determine which employees were to be
identified declared surplus and provided with a guarantee of a reasonable job offer, or
offered the options. Should you wish to lodge a complaint to the Public Service
Staffing Tribunal (PSST) regarding the results of this process, you must do so within
fifteen days of this notification. (Note 2)
OR
As an employee whose position has been identified as surplus to requirements, you
may lodge a grievance against this decision in accordance with the terms of your
applicable collective agreement (Note 2)
(Name of Civilian Human Resources Officer) has been identified as your contact for all
human resources matters and can be reached at (telephone number) if you have any
questions.
To be signed by the Commanding Officer/Director.
Note 1: Replace with "In accordance with the Work Force Adjustment Directive which is
enclosed”, as applicable.
Note 2: Select the appropriate paragraph for the situation. Use the first when the
employee is declared surplus as a result of a selection process in accordance with
PSER 21(1) where some but not all of the employees are to be retained. The second
paragraph is used when an employee in a unique position that is surplus to
requirements or all employees of similar positions are being declared surplus.
61
PART 4 - OTHER BENEFITS UNDER THE WFAD
4.1 SALARY PROTECTION
Surplus employees and laid-off persons appointed to lower level positions have their
salary and pay equity equalization payments, if any, protected in accordance with their
collective agreements, or, in the absence of such provisions, the appropriate provisions
of the Regulations Respecting Pay on Reclassification or Conversion. Accordingly, their
salary is protected until such time as they are appointed to a position equivalent to the
maximum rate of pay of their former group and level, or until they refuse an offer of
appointment equivalent to the maximum of their former group and level within the same
geographical area.
Employees who are salary protected as a result of a work force adjustment situation
continue their salary protection even if they leave the position voluntarily to accept an
equivalent or higher level position that is not yet at their former level. For example, an
employee salary protected at the CR-05 level in a CR-03 position can now compete for
a CR-04 position and still be salary protected at the CR-05 level. Previously, salary
protection ceased once the employee vacated the CR-03 position. Section 5.1.2 of the
WFAD/WFAA refers.
In a case involving two departments, the appointing department is responsible for
administering the higher salary; however, the home department is responsible for the
difference in cost between the two salaries for a period of one year from the date of
appointment. For appointments within DND, the home unit is responsible for the
difference in cost between the two salaries for a period of one year from the date of
appointment unless the appointing unit is willing to absorb the cost.
4.2 RETENTION PAYMENT
In accordance with Part 6.4 of the WFAD/WFAA, there are three situations in which an
employee may be eligible to receive a retention payment: a total facility closure, the
relocation of a work unit, and an alternative service delivery initiative.
A retention payment can be offered to an employee who is asked, in writing, to remain
until the date of closure, relocation, or transfer to the new employer for operational
reasons. A retention payment is payable in an Alternative Delivery Initiative situation to
employees who have not received a job offer from the new employer or who have
received an offer and turned it down. If the employee agrees to stay and offers a
resignation from the Core Public Administration to take effect on that date, a sum
equivalent to six months' salary is payable on the day on which the departmental
operation ceases, relocates, or transfers to the new employer. All employees accepting
a retention payment must agree to leave the Core Public Administration without priority
62
rights.
Where it is deemed appropriate to offer a retention payment, the delegated authority
must determine which employee(s) is (are) essential to operational requirements and
should be offered this payment. Retention payments are a managerial tool, not an
employee right, and should only be offered when it is impossible to replace the
employee. This payment cannot be received in combination with any other lump-sum
payment, including the TSM.
The request for retention payment form at Annex 4-A must be submitted to the Level 1
for approval. Level 1s have the authority to sub-delegate the approval of this lump-sum
payment to the level they deem appropriate, but not lower than Level 3. If the approval
authority rests at a higher level, the Level 3 must recommend the payment and submit
the request, through the Civilian Human Resources Officer, to the approval authority. If
the Level 3 has been delegated this approval authority, the approved form is to be
forwarded to the Civilian Human Resources Officer.
The request must be accompanied by a description of the activity which has led to the
employee's being declared surplus; assurance that the employee is ineligible for pay in
lieu of unfulfilled surplus period; certification that the work cannot be done in any other
way and that it is impossible to replace the individual employee during the surplus
period; and assurance that the employee's work is being discontinued on the
resignation date.
Those with the delegated authority for the approval of lump-sum payments are
responsible for ensuring that requests for lump-sum payments are justified and within
the spirit and intent of the WFAD/WFAA. .
An employee who receives a retention payment and who, during the period to be
covered by the lump sum, is reappointed to that portion of the Core Public
Administration specified in Schedules I and IV of the Financial Administration Act, must
reimburse the Receiver General for Canada by an amount corresponding to the period
from the effective date of reappointment to the end of the original period for which the
lump sum was paid. Reimbursement must also be made if the new employer hires the
employee within the period covered by the payment.
The procedures for effecting recovery on any amounts due to the Crown are outlined in
the Directive on Terms and Conditions of Employment, Appendix B, Section 15. Note
that the amount of recovery is calculated on the rate of pay established on
reappointment and not the salary rate used in the lump-sum calculations. The amount
of recovery must be reported as a debt due the Crown, using deduction code 540
"Other debts owing to the Crown". As the recovery must be made from the first
available monies and cannot be extended with a lower rate of recovery, it is important
63
that employees be made aware of the impact this will have on their take home pay.
4.3 WAIVER OF SUPERANNUATION REDUCTION
On November 5, 1998, the Treasury Board provided authority to waive the reduction in
the annual allowance payable under the Public Service Superannuation Act (PSSA) to
an employee who has involuntarily ceased to be employed and who is age 55 to 59 and
has at least 10 years of employment in the Public Service.
Only an employee who has chosen the 12-month surplus priority period and who is
unsuccessful in finding new employment, or who has opted for the TSM, or in special
circumstances, an employee who has received a retention payment, may be considered
for a waiver. As the focus of the WFAD and the WFAA is on a guarantee of a
reasonable job offer, the Treasury Board does not expect significant utilization of the
waiver provision.
In addition, the Treasury Board has granted the authority to certify waiver eligibility to
deputy heads or their designated representatives. In DND, this authority has been
delegated to the Assistant Deputy Minister (Human Resources – Civilian), with
DGCHRMO as the alternate. Retirement documents for all surplus employees
requesting the waiver should be forwarded to Superannuation Branch, Public Works
and Government Services Canada (PWGSC). In addition, the following information for
each employee must be forwarded to Director Civilian Compensation Services (DCCS),
through the Civilian Human Resources Service Centre Director:
a) a copy of the PWGSC 2011 "Notice of Termination and Option for Benefit" form
showing the employee's first option for an unreduced annual allowance and a
second option for a reduced allowance;
b) a statement from the Civilian Human Resources Officer confirming that the
employee has 10 years of employment in the Public Service;
c) the completed form "Request For Certification of Eligibility for an Unreduced Annual
Allowance".
The employee will receive a reduced annual allowance subject to the approval of the
waiver from the delegated authority.
(Text in italics is currently under review.)
PART 4 ANNEX:
Annex 4-A
Request for Retention Payment
64
REQUEST FOR RETENTION PAYMENT
DEMANDE DE PRIME DE MAINTIEN EN FONCTIONS
In accordance with Section 6.4.5 of the WFAD/WFAA, I agree to remain in my position until the __________________
(closure/relocation/alternative delivery initiative) of the work unit on _____________ (date). Subject to the approval of the delegated
authority specified by the Deputy Minister, I hereby tender my resignation from the Core Public Administration to take effect on that date
on the understanding that I will receive a lump-sum payment equivalent to six months' pay.
I will be deemed to be laid off for purposes of severance pay and retroactive remuneration only, and I will have no priority rights for
reappointment. I understand that if I am subsequently appointed to a portion of the Core Public Administration specified in Schedules I
and IV of the Financial Administration Act during the period covered by my lump-sum payment (excluding severance pay), I must inform
that department that I am a former public servant in receipt of such a payment, and that I must reimburse the Receiver General for
Canada by an amount corresponding to my regular pay from the date of re-appointment to the end of the period covered by the lumpsum payment (excluding severance pay) . I also understand that if I subsequently enter into a service contract with a department or
portion of the Public Service set out in Schedules I and II of the Public Sector Compensation Act during the lump-sum payment period, I
must inform the contracting department or agency that I am a former public servant in receipt of such a payment. I further understand
that I am subject to a potential earnings limit of $5,000 in fees during the period represented by the lump sum.
Conformément à l'alinéa 6.4.5 de la DRE/ARE, je consens à rester en fonction jusqu'à la ____________
(fermeture/réinstallation/diversification de mode de prestation de service) de l'unité de travail le ____________ (date). Par la présente,
sous réserve de l'approbation de l'autorité déléguée spécifiée par le sous-ministre, je vous offre ma démission de la fonction publique
qui entrera en vigueur à cette date et à condition que je touche un paiement forfaitaire équivalente à six mois de traitement.
Je serai réputé(e) avoir été mis(e) en disponibilité pour les seules fins de l'indemnité de départ et de la rémunération rétroactive et ne
bénéficierai d'aucun droit de priorité pour ce qui est d'une nouvelle nomination. Il est entendu que si, au cours de la période visée par le
paiement forfaitaire (moins l'indemnité de départ), je suis employé(e) par un ministère ou un secteur de l’administration publique
centrale précisé aux annexes I et IV de la Loi sur la gestion des finances publiques, je devrai, au moment de l'emploi ou avant, signaler
au ministère ou à l'organisme que je suis un ancien fonctionnaire qui a reçu un tel paiement, et rembourser au Receveur général du
Canada une somme correspondant à la rémunération régulière touchée à partir de la date de ma renomination et la date d'expiration de
la période visée par le paiement forfaitaire (moins l'indemnité de départ). Il est également entendu que si, au cours de la période visée
par le paiement forfaitaire, je conclus un marché de services avec un ministère ou un secteur de la fonction publique précisé aux
Annexes I ou II de la Loi sur la rémunération du secteur public, je devrai signaler au ministère ou à l'organisme contractuel que je suis
un ancien fonctionnaire qui a reçu un tel paiement. De plus, il est entendu que je suis assujetti(e) à la limite du salaire escompté de 5
000 $ pour les honoraires des marchés de services que je pourrai conclure pendant la période visée par le paiement forfaitaire.
Name/Nom
Signature
Date
Date Declared Surplus
Date à laquelle le fonctionnaire a été déclaré
excédentaire
Scheduled lay-off date
Date prévue de mise en disponibilité
Base/Unit
Base/Unité
Position Number
Numéro du poste
P.R.I.
C.I.D.P.
RECOMMENDATION FOR APPROVAL
Group/Level
Groupe/Niveau
Amount:
$ _________________
Montant :
_________________$
RECOMMANDATION POUR AUTORISATION
I certify that the work cannot be done in any other way and the employee cannot be replaced during the surplus period; and the
employee's work is being discontinued on the resignation date.
Je certifie que les fonctions ne peuvent être remplies d'une autre façon et il est impossible de remplacer ce fonctionnaire pendant sa
période de priorité d'excédentaire, et que ses fonctions seront supprimées à la date de sa démission.
Signature
Position/Poste
APPROVAL (Delegated authority)
Signature
Date
AUTORISATION (pouvoir délégué)
Position/Poste
Date
65
PART 5 - POST EMPLOYMENT
NOTE: Part 5 is currently under review by TBS.
5.1 GENERAL
Generally speaking, the intention of the Government of Canada is that when functions
have ceased to exist as a result of downsizing, the positions of the incumbents of those
functions should be abolished too. However, it is recognized that individuals are free to
apply for any jobs for which they are qualified. It is also recognized that the Core Public
Administration may need the services of some employees after they have left. As a
result, terms, limitations and conditions have been developed under which persons in
receipt of a departure incentive may return to work, whether as an employee or a
contractor.
5.2 RETURNING AS AN EMPLOYEE
For those seeking to return as employees, the first issue is one of reimbursement.
Anyone returning within the number of weeks represented by the non-severance pay
portion of their lump-sum payment would have to pay back that payment on a pro rata
basis. For example, a person whose TSM payment excluding severance pay equated
to 38 weeks and who returned to employment as a term or indeterminate employee 10
weeks later would have to pay back the remaining 28 weeks (i.e. 140 days).
Employees are subject to reimbursement if they are in receipt of a TSM, a retention
payment, or a lump-sum payment or salary top-up in accordance with the alternative
delivery initiatives provisions of the WFAD/WFAA. If re-employment begins after the
time equivalency period has expired, no lump-sum money would have to be repaid.
The second issue is one of potential pension suspension and waiver loss. Persons who
accept any position where they again become contributors under the Public Service
Superannuation Act could be adversely affected and could automatically have their
pensions suspended. To determine the implication as it relates to the pension
entitlement, employees are strongly advised to contact the Public Service Pension
Centre.
5.3 RETURNING AS A CONTRACTOR
For those returning in a contractual relationship, limits are placed on the amount that
can be earned from the contract. Specifically, the former employee will only be
permitted to earn up to $5,000 during the window period (number of weeks represented
by the non-severance portion of the payment) immediately after employment. The
$5,000 ceiling is cumulative for the window period; therefore any single contract that
would put the recipient in the position of receiving more than $5,000 during the window
66
period requires Treasury Board approval. The $5,000 rule applies where the former
employee undertakes a contract as an individual, as a sole proprietorship corporation,
or as a partnership in where that individual has a major interest in the contracting entity.
Generally, where the former employee has the right to exercise directing or governing
influence over the contracting entity, or has the right to order the business and financial
affairs of that entity, then the contractor may be subject to the post-employment regime
set out in the Contracting Policy. If the former employee goes to work as an employee
of, or sub-contractor to, an established firm contracting with the government, these
restrictions do not apply.
After the window period expires, those receiving pensions under the Public Service
Superannuation Act will be subject to the Treasury Board's fee abatement (reduction)
policy on contracts for personal services for a further 12-month period. During this
additional period, the reduction applies only to non-competitive contracts and is
established by setting the contract fee so that the former employee's pension payment
plus the contract fee cannot exceed his or her former salary.
5.4 RESPONSIBILITY OF MANAGERS
In addition to the restrictions and onus placed on former employees, managers are
reminded of the rules of probity and proper conduct in dealings with former employees.
There are activities that lie within the grey area between the specific prohibitions and
restrictions of the post-employment regime and definite illegality. While not technically
illegal, these activities are considered improper as they would enable former Public
Service employees to get around the restrictions that have been put in place. Since no
reappointment can occur, nor a contract let without the manager as the initiator or
approver, the onus is placed on managers to ensure that relations with former
employees can bear the closest scrutiny as being in accordance with the spirit as well
as the letter of the rules.
Examples of unacceptable practices include the deliberate rehiring of a former
employee as a term employee for less than 6 months to avoid contributing to the Public
Service Superannuation Fund; granting a contract to a private sector firm only if a
specific former employee, who is now a member of the firm, would be assigned the
tasks of the contract; or bringing back an individual in receipt of a lump-sum payment
immediately after the termination of employment in order for the former employee to
undertake or finalize work that should clearly have been done before departure. While
not an exhaustive list, these activities are illustrative of improper conduct on the part of
managers. Any manager found violating the post-employment instructions will be
subject to disciplinary action.
67
5.5 POST-EMPLOYMENT CONDITIONS
In signing a Work Force Adjustment Option Selection Form, the employee
acknowledges that returning as an employee to the Core Public Administration may
entail the reimbursement of lump sums.
Completion of a standard Employee Declaration Document (form TBS/SCT 3258(1995/10)) is also mandatory for all former employees offered reemployment with the
Core Public Administration and letters of offer are to include the following paragraph:
May I remind you that if you have previously left a department or portion of the Core
Public Administration specified in Schedules I and IV of the Financial Administration
Act and received a benefit under a work force reduction program applicable in that
organization (e.g. Work Force Adjustment Directive, Work Force Adjustment
Appendix, RCMP Work Force Adjustment Directive, Directive on Career Transition for
Executives), you are obligated to comply with the terms and conditions of that
program. This means that if you have received a lump-sum payment other than the
normal payments related to termination of employment (such as severance), you are
obligated to reimburse the amount covering the period from the effective date of
reappointment to the end of the original period for which the lump sum was paid.
Every employee is required to complete an Employee Declaration Document
certifying whether or not (he/she) left (his/her) previous employment according to the
work force reduction programs. This declaration will be retained on file during your
appointment.
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PART 6 - SPECIAL PROVISIONS REGARDING ALTERNATIVE
DELIVERY INITIATIVES
NOTE: Part 6 is currently under review.
6.1 GENERAL
The provisions of this section and Part VII of the WFAD/WFAA apply only in the case of
alternative delivery initiatives (ADI). (Note - In DND, ADI situations are also referred to
as alternative service delivery (ASD) initiatives.) Employees affected by Alternative
Delivery Initiatives and who receive job offers from the new employer are to be treated
in accordance with the provisions of this Part of the WFAD/WFAA and, only where
specifically indicated, will other provisions of the WFAD/WFAA apply to them. These
provisions apply to all ADI initiatives, including those situations that are not governed by
the Departmental Alternative Service Delivery Policy, issued by the VCDS.
6.2 PRINCIPLES
The administration of ADI situations must 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.
These principles place a significant onus on the Department to secure employment
continuity for employees affected by an ADI.
6.3 DEFINITIONS
For the purposes of Part VII of the Directive/Appendix, the following definitions apply:
a.
Alternative Delivery Initiative - is the transfer of any work, undertaking or
business of the Core Public Administration to any body or corporation that
is a separate employer or that is outside the Core Public Administration.
b.
Reasonable job offer - is an offer of employment received from a new
employer in the case of a Type 1 or Type 2 transitional employment
arrangement, resulting from an alternative service delivery initiative. An
offer of employment from a Schedule V Employer is also a reasonable job
offer, providing that:
69
(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 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.
c.
Termination of employment - is the cessation of employment pursuant
to paragraph 12 (1)(f) of the Financial Administration Act (FAA), meaning
the termination of employment of an employee to whom an offer of
employment is made as the result of an alternative delivery initiative.
d.
Remuneration - includes pay + equal pay adjustments, if any +
supervisory differential, if any.
6.4 TRANSITIONAL EMPLOYMENT ARRANGEMENT TYPES
There are three types of transitional employment arrangements (job offers) resulting
from ADI situations:
a.
Type 1 - Full Continuity
b.
Type 2 - Substantial Continuity
c.
Type 3 - Lesser Continuity
Each provides for employment continuity to some degree and determines the
entitlements the employees will receive, either in accepting or refusing the job offer. The
delegated authority determines what constitutes the transfer group and what type of job
offer applies to the transfer group.
An offer of employment from the new employer which meets the criteria for a Type 1 or
Type 2 job offer is deemed to a reasonable job offer (RJO) for the purposes of the
WFAD/WFAA. However, a Type 3 job offer is not considered to be an RJO. The
criteria for each type of job offer are described below. For ease of reference, the chart
at Annex 6-A briefly describes the criteria for each type of job offer and specifies the
employee's entitlements in accepting or refusing each type of job offer.
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6.5 TYPE 1 - FULL CONTINUITY
For an offer of employment from the new employer to constitute a Type 1 reasonable
job offer, all of the following criteria must be met:
a.(i)
Legislated successor rights apply. The specific conditions for successor
rights will be determined by the labour legislation governing the new
employer.
a.(ii)
In the case of unrepresented and excluded employees, the Public Service
Terms and Conditions of Employment Regulations, the terms of the
collective agreement referred to in these Regulations, and/or the
applicable compensation plan will continue to apply until modified by the
new employer.
b.
Continuous employment in the public service is recognized, as defined in
the Public Service Terms and Conditions of Employment Regulations.
c.
Pension arrangements according to the statement of Pension Principles
are in existence, or, if the test of reasonableness is not met, the payment
of a three-month lump sum is made to employees.
d.
There is a transition employment guarantee of 2-years minimum
employment with the new employer.
e.
There is coverage in each of the following core benefits: health benefits,
long term disability (LTD) insurance and a dental plan. (Note that this is a
check for coverage, not a comparison of the federal and new benefit
packages.)
f.
There is short-term disability bridging recognizing the employee's earned
but unused sick leave credits, up to the maximum of the new employer's
LTD waiting period.
The employee must be given 60 calendar days to consider the offer.
Where the employee accepts the Type 1 offer, the following apply:

No lump-sum payments, except for a lump-sum payment equivalent to three
months of current (federal) salary if the pension standard is not met.

No access to the options under Part VI of the WFAD/WFAA.
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
Severance pay is deferred where successor rights apply and the collective
agreement carries over to the new employer, unless there is agreement
between the parties to extract the severance pay provisions from the
collective agreement prior to the transfer date.

No priority rights for appointment to another position in the Core Public
Administration.

An option for the carry over of annual leave upon agreement by the new
employer.

Unused sick leave credits (up to the new employer's LTD insurance waiting
period) are carried over.
If the employee refuses the Type 1 offer, the following apply:

No access to the options under Part VI of the WFAD/WFAA.

Severance is paid at the lay-off rate.

Priority rights, namely priority status as if the employee had been laid-off in
accordance with section 46 of the PSEA.

Four months' notice of termination under section 12 (1)(f) of the FAA.

Section 6.4.8 (retention payment) of the WFAD/WFAA may apply. Note this
payment may not be combined with any payment under Part VII. Refer to
section 4.2 of this manual.
6.6 TYPE 2 - SUBSTANTIAL CONTINUITY
For an offer of employment received from the new employer to constitute a Type 2
reasonable job offer, all of the following criteria must be met:
a.
The average new hourly salary (= rate of pay + equal pay adjustments +
supervisory differential) offered by the new employer for the group moving
is 85% or greater of the group's current federal hourly remuneration
(=
pay + equal pay adjustments + supervisory differential), when the hours of
work are the same.
b.
The average annual salary (= rate of pay + equal pay adjustments +
supervisory differential) offered by the new employer for the group moving
is 85% or greater of the group's current federal annual remuneration
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(= pay + equal pay adjustments + supervisory differential), when the hours
of work are different.
Note: It is the salary for the whole group moving that is used in this calculation,
and that the employees are not separated by occupational group and level. It is
also the salary being received by each employee and not necessarily the
maximum salary of a salary range. Acting pay cannot be used for this
calculation. However, if the employee is salary protected, the salary level of the
salary protection will constitute salary for purposes of the calculation.
The distinction made in paragraphs a. and b. is to ensure fairness in the
calculation of salaries. For example, if the new employer were to offer the same
hourly salary but only half the hours of work, the employees would end up with
only 50% of their public service salary with the new employer.
c.
Pension arrangements according to the statement of Pension Principles
are in existence, or, if the test of reasonableness is not met, the payment
of a lump sum equivalent to three months' salary is made.
d.
There is a transition employment guarantee of 2-years minimum
employment with the new employer or employment tenure equivalent to
that of the permanent work force in the receiving organization.
e.
There is coverage in each of the following core benefits: health benefits,
long term disability (LTD) insurance and a dental plan.
f.
There is short-term disability arrangement.
The employee must be given 60 calendar days to consider the offer.
Where the employee accepts the Type 2 RJO, the following apply:

A lump-sum payment equivalent to three months of current (federal) salary,
plus an 18-month salary top-up allowance, paid as a lump sum.

An additional six-month salary top-up allowance, paid as a lump sum, if an
individual's new salary is less than 80% of his or her former federal salary, for
a total of 24 months salary top-up allowance. (Note: Because the average for
the group is used to determine whether an offer is a Type 2, an individual can
receive an offer for less than 85% of present salary and it is still deemed to be
a Type 2.)

A lump-sum payment equivalent to three months of current (federal) salary if
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the pension standard is not met.

No access to the options under Part VI of the WFAD/WFAA.

Severance pay is deferred if the new employer recognizes service and
provides a similar severance package, or severance is paid at the lay-off rate.

No priority rights for appointment to another position in the Core Public
Administration.

An option for the carry over of annual leave upon agreement by the new
employer.
If the employee refuses the Type 2 offer, the following apply:

No access to the options under Part VI of the WFAD/WFAA.

Severance is paid at the lay-off rate.

Priority rights, namely priority status as if the employee had been laid-off in
accordance with section 46 of the PSEA.

Four months' notice of termination under section 12 (1)(f) of the FAA.

Section 6.4.8 (retention payment) of the WFAD/WFAA may apply. Note this
payment may not be combined with any payment under Part VII. Refer to
section 4.2 of this manual.
6.7 TYPE 3 - LESSER CONTINUITY
Any employment offer resulting from an alternative delivery initiative that does not meet
the criteria applying in Type 1 and Type 2 job offer is a Type 3 offer. The differences
may be in salaries, benefits, and/or pensions. Such a job offer is not considered to be
an RJO for the purposes of this Part of the Directive/Appendix. The employee must be
given 60 days to consider the offer (Note – The amount of time may vary. Check the
wording in the applicable WFA policy.) In DND, it is recommended that this period also
be considered as the option decision period for those who decline the employment offer
and who will, as a result, be offered the options under Part VI. In other words, the
decision period for considering the job offer from the new service provider and the
period to consider the options may overlap. It will, therefore, be important for those
employees who will want to find an alternate to notify their designated Civilian Human
Resources Officer of their decision as soon as possible to allow for the search for
alternates prior to being declared surplus.
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Where the employee accepts the Type 3 job offer, he or she is entitled to the following:

A lump-sum payment equivalent to six months of the current (federal) salary,
plus a 12-month salary top-up allowance, paid as a lump sum, to a combined
maximum of one year's salary.

No access to the options under Part VI of the WFAD/WFAA.

Severance is paid at the lay-off rate.

Priority rights, namely priority status as if the employee had been laid-off in
accordance with section 46 of the PSEA.
Where the employee refuses the Type 3 job offer, the following apply:

Entitlements of Parts I through VI of the WFAD/WFAA.

Either a GRJO within the Core Public Administration or access to the options
under Part VI (with Deputy Minister approval).

Where applicable, severance is paid at the lay-off rate.
6.8 DEPARTMENTAL HR POLICY ON EMPLOYMENT CONTINUITY IN ASD
SITUATIONS
As the norm, the Department is seeking enhanced Type 2 job offers in ASD situations
involving 10 or more indeterminate employees. The following minimum requirements
must be specified in all Statements of Work and Requests for Proposal:

Average salary of group of employees moving to be at least 85% of
current salary;

There must be pension arrangements according to the Statement of
Pension Principles found in Annex A of Part 7 of the WFAD/WFAA. If the
pension arrangements do not meet the test of reasonableness as set out
in that Statement, then the employees are entitled to receive a three
month lump-sum payment pursuant to section 7.7.3 of the WFAD/WFAA.

Coverage in core benefits: health, LTD, dental, short term disability;

Minimum employment guarantee of two years;
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
No individual salary to be less than 100% of the public service rate of pay
for comparable work;

Job offers to be made to 50% of the existing indeterminate civilian
workforce or to a number equivalent to 70% of the contractor's new civilian
workforce, whichever is greater; and

Additional evaluation points are to be awarded if minimums are exceeded
with respect to length of employment guarantee and number of job offers.
Any exceptions to the departmental norm must be the subject of consultation between
the unions and departmental management at the national joint WFA-ASD committees.
VCDS, CLS and ADM (HR-Civ) represent management of the Department at these
committees. Consequently, their concurrence is necessary before consultation can take
place.
For ASD activities involving less than 10 indeterminate employees, departmental
management may consult with unions locally on the quality and quantity of any job
offers to be made by external service providers.
All Statements of Work and Request for Proposals must also require bidders to exercise
due diligence with respect to the existence of successor rights. Under no
circumstances should the Department agree to assume any additional costs to the
successful contractor associated with the granting of successor rights (see Section
6.10).
6.9 CONSULTATION
Consultation with the unions in its fullest and broadest sense, from the very beginning of
any ASD exercise, is an integral part of the departmental ASD policy. Human
resources issues, for both employees who may be moving to the new service provider
and those who will not, must be an integral component of this consultation. Successful,
smooth and timely implementation of new initiatives can be dependent upon the degree
to which the employees and their representatives have been engaged in the process.
Responsibility for consultation rests with the level responsible for the alternative delivery
activity, with support from the corresponding level in the civilian human resources
community.
Consultation should take place as soon as an activity is contemplated for alternative
service delivery analysis and should continue for the duration of the process. More
specifically, both the WFAD and the WFAAs require departments to provide notice to
the Bargaining Agents as soon as possible after the decision is made to proceed with
an ASD initiative, and if possible, not less than 180 days prior to the date of transfer.
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The notice to the Bargaining Agents will include the program being considered for ASD;
the reason for the ASD; and the type of approach anticipated for the ASD initiative. In
addition, section 7.2 of the WFAAs requires that a joint WFA-ASD committee be created
for ASD initiatives with equal representation from the department and the component.
By mutual agreement, the committee may include other participants.
6.10 SUCCESSOR RIGHTS
Successor rights are provisions in labour codes that preserve union bargaining rights
from being extinguished when there is continuation of the same business after it is sold,
leased, transferred or otherwise disposed of to another employer who is subject to
those labour codes. In other words, successor rights allow a bargaining agent to
continue to represent employees in a bargaining unit and for collective agreements (less
National Joint Council agreements except the WFAD) to remain in effect until their
expiry. The new employer therefore becomes responsible for the predecessor's
obligations toward the employees under the collective agreement.
It must be noted, however, that successor rights do not refer to employees. The new
employer is not obligated to hire the employees of the previous employer. What the
new employer is obligated to do is apply the terms and conditions of the collective
agreement that was in place (until its expiry) to whoever performs the work that is sold,
leased, or transferred.
The application of successor rights varies across Canada and is dependent on federal
and provincial legislation. The legislation which could apply to DND's alternative service
delivery initiatives are the Public Service Labour Relations Act (PSLRA), the Canada
Labour Code and the labour legislation in Saskatchewan and British Columbia, the only
two provinces where successor rights are present for entities transferring from federal
jurisdiction. Therefore, a bargaining agent has successor rights when the function
performed by employees represented by that bargaining agent is transferred:
a.
From a department listed in Schedule I, Part I of the PSLRA to a separate
employer listed in Schedule I, Part II of the PSLRA;
b.
To an employer subject to the Canada Labour Code (CLC). The CLC
applies to functions that are within the legislative authority of Parliament
such as interprovincial transportation, banks, aerodromes and shipping;
c.
To an employer subject to provincial labour codes which include specific
provisions for the transfer of businesses from federal to provincial
jurisdictions. Currently, the only two provinces with such legislation are
Saskatchewan and British Columbia.
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The determination of the applicability of successor rights can only be made by the
labour board of the jurisdiction to which the function is transferring. The parties to that
determination are the new employer, the union, and the Labour Board. DND is only an
interested party to these proceedings and may or may not seek or be granted standing
at any hearings. However, because of the implications on the benefits to employees
who are offered positions with the new employer, and because DND needs to know
what costs it may be facing, this question can be an important one.
The complexity of successor rights makes it imperative that Director General Workplace
Management (DGWM) be contacted at the beginning of the screening stage in all
alternative delivery initiatives so that legal counsel may examine the issue.
6. 11 NOTICE OF EMPLOYMENT OFFER WITH ADI PROVIDER
To facilitate making offers of employment to departmental employees, bidders may
request specific personal information on affected employees. However, due to privacy
related concerns, the Department is limited in the information it is able to provide. Once
an employee has accepted employment with the new service provider, consent can be
obtained to permit the transfer of personal information to the new employer (see section
6.21). However, before employment is accepted, only the following information may be
provided to bidders: name, job title, group and level, business phone number, salary
range for the group and level, work description and organizational chart (with names
removed) of affected employees. Bidders must not be provided with access to the
personnel file nor copies of performance evaluations. Privacy issues do not, however,
prevent a supervisor from providing reference checks to perspective employers,
including the new service provider. Once the contract has been awarded, the new
service provider may choose to hold an on-site "Job Fair" to provide affected employees
with an opportunity to either submit more detailed information on them or to specifically
apply for employment opportunities. These fairs may be a useful part of the new
service provider's hiring process, particularly when there is a requirement to provide a
minimum number of employment offers to affected employees.
The delegated authority must provide written notice to all employees who are offered
employment by the new employer, giving them the opportunity to consider the offer. In
the case of Type 1 and Type 2 offers, employees must be given 60 calendar days
following the written notification to indicate their intention to either accept or reject the
job offer. If the job offer is a Type 3, the CO/Director may specify a period shorter than
60 days, but not less than 30 days, for employees to consider the offer (NoteEmployees covered by the PIPSC WFAA and the WFAD must be given 60 days to
consider a Type 3 offer. As the amount of time may vary, check the applicable WFA
policy.) Ideally, there will be two distinct letters going to employees at the same time:
the job offer from the new employer and the notice from the Department. In order for
the employee to make an informed decision, the notice from the Department, must
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indicate whether the employee will be provided with a GRJO or offered the options if the
job offer is refused. The prior approval of the Deputy Minister will have to be obtained
before the letter is issued to the employee if the employee is to be offered the options.
Under the FAA, TB has the authority to deem an employee to have accepted an offer of
employment with the new employer in instances where the employee is unaware or
incapable of accepting the offer before the transfer date. This authority prevents
employees in these instances, who establish to the satisfaction of TB that they were
unaware or incapable of indication an acceptance, from being left out of the transfer
process. In these cases, the delegated authority may extend the notice period for that
employee.
6.12 COMPARISON OF BENEFITS
Human Resources Compensation Bulletins, dated 7 February and 15 February 2000,
provide a comparison of benefits listing to be given to employees being offered a
position with the new service provider. Employees can use this list, which explains the
various benefits currently available to them, to compare the benefits being offered by
the new service provider. Benefits listed include Superannuation, Supplementary Death
Benefit, Public Service Health Care Plan, Public Service Dental Care Plan, Disability
Insurance, Long-Term Disability, and the Public Service Management Insurance Plan.
This same bulletin also provides a summary of available benefits and their related costs
for distribution to bidders to assist them in the preparation of their bids and the details of
the job offers they will be making.
(Text in italics is currently under review.)
6.13 EMPLOYEES ON LWOP
It is the decision of the new employer whether an offer of continuing employment will be
made to those employees who are on LWOP at the time of the transfer. As such, the
new employer will determine the reporting date and other terms and conditions attached
to any offer made to these employees. However, the new service provider should be
encouraged to be flexible and offer employment to as many of our employees on LWOP
as possible.
Employees on LWOP who decline a Type 1 or Type 2 offer of employment with the new
employer will be subject to the four months notice of termination period. Employees on
LWOP who do not receive an offer of continuing employment will be treated in
accordance with Part 3 of this manual.
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6.14 NO JOB OFFER
For those employees who do not receive a job offer from the new employer, the normal
provisions of the WFAD/WFAA apply. Where a guarantee of a reasonable job offer
within the Core Public Administration cannot be provided and Deputy Ministerial
approval is obtained, the employees not in receipt of a job offer with the new service
provider will have access to the options under Part VI.
6.15 OFFICIAL NOTIFICATION TO TREASURY BOARD
The requirement for Official Notification in accordance with Part II of the
Directive/Appendix also applies to alternative service delivery. Following the 60 day
decision period, the CO/Director must advise Director Civilian Employment Policies
(DCEP) of the nature of the ADI, the identity and location of the work unit(s) affected,
the anticipated date(s) of issuance of termination of employment notices, and provide
the number of employees, by group and level, who have refused a Type 1 or Type 2
offer of employment. This information is required for the Department to officially notify
the Treasury Board at the earliest possible date, but under no circumstances less than
four working days before the notices of termination of employment are issued.
In the case of employees who refuse Type 3 offers, or who do not receive an offer of
employment with the new employer, official notification in accordance with section 2.12
of this manual is required.
6.16 PRIORITY RIGHTS
An employee who does not accept an offer from the new employer that is deemed to be
an RJO (Type 1 or 2) is granted priority rights in accordance with section 46 of the
PSEA following the termination of their employment under Section 12 (1)(f) of the FAA,
as if the employee had been laid-off. However, since these employees are not declared
surplus, they have no entitlement to a surplus priority period prior to employment
termination. In a Type 3 situation, an employee who accepts the offer from the new
employer (not an RJO) is also granted priority rights under the PSEA as if he or she had
been laid-off. This priority entitles employees who have not accepted a reasonable job
offer to priority rights for reappointment to the Core Public Administration as if they had
been laid-off. An employee who refuses a Type 3 transitional employment
arrangement, however, is treated under the normal work force adjustment provisions. If
such an employee is declared surplus, he or she will be granted surplus and lay-off
priority rights in accordance with the PSEA.
A lay-off priority may, therefore, be accorded pursuant to section 46 of the PSEA. This
entitles those employees whose employment has been terminated under Section 12
(1)(f) of the FAA to the same entitlement for reappointment in the Core Public
80
Administration and to enter competitions that are available to employees who are laidoff. Extending these rights to these employees recognizes that they have not moved to
a reasonable job and is consistent with the treatment of employees who refuse an RJO
within the Core Public Administration.
6.17 LUMP-SUM PAYMENTS AND SALARY TOP-UPS (ACCEPTANCE OF OFFER)
ADI lump-sum payments are payable upon the day the departmental work or function is
transferred to the new employer.
Salary top-up allowances are also payable as a lump sum upon the day on which the
departmental work or function is transferred to the new employer. A salary top-up
allowance is equivalent to the difference between an employee's public service
remuneration (at the substantive level) and the remuneration applicable to the position
with the new employer.
All ADI lump-sum payments are pro-rated for seasonal and part-time employees. On
the other hand, if a full-time employee accepts seasonal or part-time employment with
the new service provider, the lump-sum payments and salary top-up will be based on
the employee's full-time position. Codes for these payments have been created in the
pay system.
6.18 PENSION PRINCIPLES
Pension arrangements must exist for a job offer from the new employer to meet the
Type 1 or Type 2 criteria. The employer's costs must be at least 6.5% of straight time
payroll (excluding the costs related to the administration of the plan) to meet the "test of
reasonableness". If the pension arrangements do not meet the test of reasonableness,
employees who accept the RJO will receive a sum equivalent to three months' pay.
This sum is payable upon the day on which the work or function is transferred to the
new employer. Both the WFAD and WFAA specify that the methodology to be used to
determine the test of reasonableness is the Assessment Methodology developed by
Towers Perrin for the Treasury Board, dated October 7, 1997.
In Type 3 transitional employment arrangements where there are no pension
arrangements in place, PSSA coverage could be provided during a transitional period of
up to one year, subject to the approval of Parliament and a written undertaking from the
new employer to pay the employer costs.
6.19 PENSION TRANSFER AGREEMENTS
In any alternative delivery initiative, a pension transfer agreement may be negotiated
with the new service provider. Director Civilian Compensation Services (DCCS) is the
81
liaison with Treasury Board for these agreements. Since the negotiation of a pension
transfer agreement can be a lengthy process, it is important that the formal request be
submitted to Treasury Board as early as possible.
Where a pension transfer agreement is struck with the new service provider, employees
have the choice of transferring their pension or keeping the accumulated pension
entitlement in the Public Service Superannuation Plan.
6.20 PENSION IMPLICATIONS
An employee's pension options upon accepting a position with the new service provider
will depend on whether the employee has been adversely affected by the ADI. In other
words, employees accepting a job offer with the new employer may not be entitled to
the pension options normally available to those leaving the Core Public Administration.
The transfer of an employee's superannuation to a new employer's pension plan is not
compulsory. The employee has the option to transfer the pension if a transfer
agreement exists or to choose another pension option such as an immediate annuity,
an annual allowance or transfer value. However, Treasury Board has determined that
only those employees who are adversely affected are able to exercise their normal
pension options (such as immediate annuity, annual allowance or transfer value) under
the Public Service Superannuation Act (PSSA) at the time that they are struck off
strength (SOS).
Employees who are not adversely affected will only have the option of transferring their
pension to the new employer under a transfer agreement. All other options will be put
on hold until the employment with the new employer has terminated. For example, an
employee who is 60 years of age with 20 years of pensionable service will not be given
the option of receiving an immediate annuity upon accepting a position with the new
service provider if Treasury Board determines employees are not adversely affected by
the ADI. This employee will only start receiving the annuity when the employment with
the new employer is terminated. However, the benefits in respect of service accrued to
the point of transfer are fully protected. Although the pension options are not made
available to the employee at the time of leaving the Core Public Administration, all the
normal options will be made available when the employee leaves the service of the new
employer.
The compensation arrangement proposed in each bid must be looked at independently
by Treasury Board to determine if an adverse effect is created or not for the affected
employees. The effect will be based on employees as a group, not on each individual
employee's situation. It is imperative that the Human Resources component of all the
bids be made available in a timely fashion to Treasury Board, through the Director
Civilian Compensation Services (DCCS), to expedite the review process. In situations
82
where there are no bids, Treasury Board will review the compensation arrangements
proposed by the new service provider. Having this review completed by the time the
contract is awarded is necessary to properly counsel employees on their options when
employment offers are made.
6.21 TRANSFER OF LEAVE CREDITS
An employee who accepts a job with the new employer may choose not to be paid for
earned but unused vacation leave credits, provided the new employer will accept such
credits. The transfer of funds to the new employer for unused sick leave credits (in a
Type 1) and vacation leave credits are the subject of bilateral arrangements with the
new employer and must be clearly spelled out in any transfer agreement. The fact that
bridging arrangements for sick leave are criteria should not automatically result in an
assumption of financial liability for sick leave funding. In other words, the transfer of the
credits does not imply the transfer of funds to finance the use of these credits once the
employee has transferred to the new employer. The transfer of any such funds must
also be clearly outlined in the transfer agreement. Please contact DCCS for further
clarification on the transfer of leave credits.
6.22 EMPLOYMENT GUARANTEE
A two-year minimum employment guarantee is a criterion for both Type 1 and Type 2
transitional employment arrangements. In the case of Type 2 employment
arrangements, the two-year guarantee may be replaced by indeterminate tenure
equivalent to that of the permanent work force in the receiving organization. This
means that the new employer can choose to offer the same term of employment that
the permanent work force has, which will not necessarily consist of a two-year
guarantee. The department and the new employer are to sign a "transfer agreement"
contract which will stipulate all the terms and conditions for the sale or transfer of
assets, liabilities and the rights and obligations of each party, including this guarantee.
This agreement is legally binding.
More importantly, the two-year employment guarantee should be stated in the letter of
offer received by the employee from the new employer. This letter is a formal
employment contract that is binding on the new employer. The Department's obligation,
however, is to ensure the criterion is satisfied on the date of transfer.
6.23 DEFERRED SEVERANCE PAY
In a Type 1 situation, an employee who accepts a reasonable job offer with the new
employer will not be paid severance pay since his or her years of continuous
employment are recognized for severance purposes. In a Type 2 situation, severance
is not paid where the employee's years of continuous employment are recognized for
83
severance pay purposes and severance pay entitlements similar to the employee's
current entitlements are provided. The transfer of funds to the new employer for
deferred severance pay is the subject of bilateral arrangements with the new employer
and should be clearly spelled out in the transfer agreement.
Paragraph 10(d.1) of the FAA provides TB with the regulatory power to assume, on a
case by case basis, an on-going liability for the portion of severance pay accrued under
federal service such that this amount is protected for pay-out to transferred employees
in the event of a bankruptcy or wind-up of the new employer. This is done by
transferring the actuarial value of severance funds to the new employer for payment to
the employees on their termination of employment from the new employer.
In Type 3 situations and in Type 2 situations where the new employer does not
recognize the years of continuous employment, the employee will receive severance
pay at the lay-off rate.
6.24 EMPLOYEE CONSENT FORM
The employee's consent must be obtained to release personal information relating to
his/her employment with the Core Public Administration to the new employer to facilitate
the administration of pay, benefits, and/or pension as applicable. It is suggested that
this consent be obtained once the employee has accepted employment with the new
service provider. A sample request for consent to release personal information to the
new service provider for those employees offered employment is included at Annex 6-I,
and a sample consent form at Annex 6-J.
6.25 TERMINATION AUTHORITY
Employees who receive an offer of continuing employment that is considered to be an
RJO (Type 1 or Type 2) are not laid-off from the Core Public Administration. Whether
the RJO is accepted or not, the employee's employment is terminated in accordance
with section 12 (1)(f) of the FAA. Similarly, employees who accept Type 3 transitional
employment offers are terminated under the FAA. Employees who accept the offer of
employment with the new employer will have their employment terminated on a date on
which the transfer becomes effective, or on another date designated for operational
reasons, provided there is no break in continuous service between the Public Service
and the new employer.
If a Type 1 or 2 offer from the new employer is refused, the employee is given a fourmonth period of notice of termination. During this period, an employee does not have
priority status for referral to other positions in the Core Public Administration. This
notice of termination simply refers to a period of continued employment prior to
termination at the end of the notice period, or on a mutually agreed upon date prior to
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the end of the notice period.
The authority to extend the notice of termination period for operational reasons has
been delegated to Level 1s but such an extension cannot extend beyond the date of the
transfer.
Those who refuse a Type 3 offer of employment, which is not considered to be an RJO,
are treated in accordance with the other parts of the WFAD/WFAA. Employees who do
not receive an offer of employment with the new service provider are also treated in
accordance with the normal workforce adjustment provisions.
6.26 SAMPLE LETTERS
Sample letters applicable to ADI situations are attached as Annexes 6-B to 6-H to this
section. These letters should be amended to suit the specific circumstances of the work
force adjustment.
6.27 EMPLOYEE TAKEOVERS
Treasury Board's Employee Takeover (ETO) policy permits employees to leave the
Core Public Administration and provide the same or similar service as previously
provided, from the private sector, through either a competitive or non-competitive
contract for a period of three years. An ETO is one of the alternative service delivery
initiatives options available to the Department.
With an ETO, the employees forming the ETO company bid to provide the service on a
contract basis. If the ETO bid is successful, the principals of the ETO company
(persons who own and control the employee takeover company through significant
influence, i.e. own more than 20% of the voting shares) must resign from the Core
Public Administration and are not entitled to any departure incentives. As for the nonprincipal employees who will be working for the ETO, their entitlements will depend on
whether their employment with the ETO is considered to be a Type 1, 2 or 3.
For more information, refer to the departmental ASD policy, issued by VCDS. If
managers are faced with a possible ETO, it is recommended that advice be sought from
DCEP early in the review process with respect to the human resources strategy.
6.28 REIMBURSEMENT
An individual who receives a lump-sum payment and salary top-up allowance pursuant
to Part VII of the Directive and who is reappointed to an organization listed in
Schedules I and IV of the FAA during the period covered by the total of the lump-sum
payment and salary top-up must reimburse the Receiver General for Canada by an
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amount corresponding to the period from the effective date of reappointment to the end
of the original period covered by the total of the lump-sum payment and salary top-up
allowance. Note that when an alternative delivery initiative involves the transfer of a
function to an organization listed in Part II of Schedule I of the PSLRA, the employees
accepting the offer of employment with the new employer are not subject to payback. It
is only if these employees leave this employment and later wish to return to employment
in an organization listed in Schedule I that they will be subject to these reimbursement
provisions.
The dollar amount of the top-up received must be converted into time for the purpose of
determining the period during which any lump-sum payment must be reimbursed. In
other words, an employee in receipt of a salary top-up allowance for 18 months is not
necessarily subject to an 18-month pay-back period.
For example:
An employee making $20/hour in the Core Public Administration who accepts a
job with the new employer for $17/hour will receive a salary top-up allowance of
$9360 ($3/hour x 40 hours/week x 18 months (78 weeks)) as a lump sum. If,
after having worked 25 weeks with the new employer, the employee is
reappointed to the Core Public Administration in a job paying $18/hour, the
number of weeks payback that apply to the salary top-up allowance will be based
on the following:
-
the top-up entitlement for the 25 weeks with the new employer is $3000
($3/hour x 40 hours/week x 25 weeks)
-
the recoverable portion of the top-up is therefore $6360 ($9360 - $3000)
-
the $6360 equates to 8.8 weeks ($6360 divided by $18/hour = 353.3 hours
divided by 40 hours/week).
An individual who receives a retention payment after having refused employment with
the new employer and who is either reappointed to an organization listed in Schedule I
and IV to the FAA or hired by the new employer at any point during the period covered
by the lump-sum payment must reimburse the Receiver General for Canada by an
amount corresponding to the period from the effective date of reappointment or hiring to
the end of the original period covered by the total of the lump-sum payment.
An employee who received the TSM after refusing a Type 3 job offer, or who did not
receive a job offer with the new employer at the time of the transfer, who later accepts
employment with that same employer (during the period covered by the lump-sum
payment) may be subject to a requirement in the Government of Canada's contract with
the new employer to reimburse a portion of the lump sum.
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6.29 TIMELINE
It is assumed that most of the employees performing the functions to be transferred to
the ADI provider will be required to continue in their positions until the transition date. If
this is the case, events must be timed in accordance with the transition date.
In Type 1 and Type 2 situations, employees who accept an offer of continuing
employment with the new employer work until the transition date. Termination of
employment under the FAA must still occur, but no specific notice period is required for
employment to transfer from the Core Public Administration to the new employer. In the
case of refusal of the offer, however, a four-month notice of termination must be given.
It is important to remember that employees who do not receive offers of employment
with the new employer are to be provided with either a guarantee of a reasonable job
offer or access to the options under Part VI. In the event that employees select Option
a), employees not offered employment should be notified of their options as soon as
possible so that the end of the 12-month surplus period may approach the transition
date as much as possible.
In Type 3 situations, employees who accept an offer of employment with the new
employer will work until the transition date, and those who refuse such an offer will
either be guaranteed a reasonable job elsewhere in the Core Public Administration or
offered the options. Employees must be given 60 days to consider the offer (Note the
amount of time may vary. Check the wording of the applicable WFA policy). It is
recommended that this period run concurrently with the option decision period for those
who decline the employment offer and who will not be guaranteed a reasonable job
offer. As a result, the employee will be considering all his or her options at the same
time. The employee will have 60 days to respond to the offer of employment and until
the end of option decision period to select an option in the event that the offer is
declined. As a result, it is important for those employees who will want to alternate
during the decision period to notify the designated personnel officer of their decision as
soon as possible, to allow for the search for alternates during this period.
Ideally, Type 3 offers should be made well enough in advance of the transition date to
provide for a 12-month surplus period in the event that employees decline the offer and
select Option a). However, it is recognized that in many ADI situations it will be difficult
to ensure that the end of a 12-month surplus period coincides with the transition date.
Offers of to employment from the new service provider will most likely not be
forthcoming 16 months (120 day option decision window, plus 12-month surplus period)
prior transition. The timeline illustrates the timing of events that will avoid a paid surplus
period extending beyond the transition date. Where it is not possible for the end of the
surplus period to coincide with the transition date, every attempt should be made to find
87
other meaningful work for the employee during the surplus period until either a
reasonable job offer is made, or the employee is laid-off.
For those employees selecting Option b) or c), the transition date should be specified as
their departure date.
6.30 MANAGERIAL RESPONSIBILITIES AND SIGNING AUTHORITIES
In accordance with current departmental policy, the Executive Authority to proceed with
an ASD review is the Vice Chief of the Defence Staff (VCDS) for projects that crossenvironmental or group boundaries or the applicable Level 1 manager for projects that
fall completely within the Level 1's area of responsibility. Level 1 may delegate
executive authority powers to Level 2 managers for initiatives affecting fewer than 10
indeterminate employees. For projects where the VCDS or Level 1 manager is the
Executive Authority, formal consultations between the Executive Authority and union
representatives take place through the UMCC Sub-Committee on ASD. When a Level
2 manager is the Executive Authority, formal consultations can take place through the
steering committee (which may include union representation), Labour-Management
Relations Committees or other local structures as appropriate.
Authorities under the special provisions regarding ASD situations specified in Part VII of
the WFAD/WFAA, and the authority to terminate employment pursuant to Section 12
(1)(f) of the FAA have been delegated to the decision authority for a particular
alternative delivery initiative, namely Level 1 and CO/Director as applicable. This
includes the authority to decide the type of transitional employment arrangement
applicable to particular ASD initiatives as per Section 7.3.1 of the WFAD/WFAA, to
approve lump-sum payments and salary top-up allowances pursuant to Sections 7.7.1,
7.7.2, 7.7.3 and 7.7.4 of the WFAD/WFAA, to extend the period of notice prior to
termination of employment for operational reasons as per Section 7.5.2 of the
WFAD/WFAA, to deem an employee to have accepted an offer of employment from the
new employer, and to terminate the employment of employees to whom an offer of
employment is made as the result of an ASD initiative pursuant to Section 12 (1)(f) of
the FAA.
These authorities would be exercised by the Level 1 or by the CO/Director, depending
on which is the decision authority for a given ASD initiative. In a case where the
management decision to proceed with an ASD initiative rests with the Level 1, the Level
1 has the prerogative to further delegate the authorities under the ASD provisions of the
WFAD/WFAA to the CO/Director. Where sub-delegation does occur, it is to be
specified, in writing, by the Level 1.
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6.31 EMPLOYEE RESPONSIBILITIES
Employees are responsible for seriously considering job offers made by the new
employers and advising management of their decision within the allowed period.
6.32 HR ROLES AND RESPONSIBILITIES
The following sections provide information on the HR roles and responsibilities for those
involved in an ASD review. It follows the various stages outlined in the Guide to ASD
Methodology issued by VCDS. ASD is but one of several performance enhancement
solutions available within the continuous improvement framework. The information
provided is intended to highlight some of the more important HR activities expected at
certain stages of the review, not a comprehensive explanation of the ASD methodology
itself. More detailed information on the ASD policy and methodology is available at the
VCDS website:
http://vcds.mil.ca/dgsp/pubs/stratchange/asd/00native/asd_guide_e.pdf
6.33 INITIAL ANALYSIS PHASE
This is the first phase of an ASD review. If the initial analysis of an activity identifies an
ASD-like option as a potential performance enhancement solution, then the manager
must obtain the appropriate authority to proceed with the ensuing ASD review. In
addition, if six or more indeterminate civilian employees could potentially be affected by
the ASD review, the Deputy Minister must be notified and approval obtained to proceed
with the ASD review. It is critical at this stage that managers seek the advice of their
HR advisors so that they can become familiar with the contents of the WFAD/WFAA
and the Departmental Policy on Employment Continuity in ASD Initiatives.
It is also important for management to advise the union(s) as soon as an activity is
being considered for an ASD review and consult with them throughout the ASD
process. Ideally, unions should be involved as full participants in discussions with
management and employees. Union representatives are, however, excluded from
participating in specific steps of the ASD process such as the evaluation of proposals or
bids. Unions have a vital role to play in trying to do the best for their membership.
It is also important to remember that several unions represent DND employees and it is
not appropriate to ask one union to speak on behalf of members of other unions.
Management should therefore consider inviting all unions whose members are affected
to participate in the ASD process.
Keeping employees informed of what is going on is critical to the success of an ASD
initiative. Employees should be informed at the outset that their functions are being
89
reviewed, even though the result of the analysis may be a decision not to proceed with
ASD.
Given the complexity of the issue of successor rights, management should initiate
discussions with DGWM at this stage to examine the possibility of successor rights
applying in the ASD initiative and the effect it would have on employment continuity
issues. Civilian Human Resources Officers can assist in facilitating these preliminary
discussions.
6.34 CASE ANALYSIS PHASE
Having confirmed that an opportunity for an ASD initiative exists, various delivery
options are reviewed during the case analysis phase and a recommendation is made to
the Executive Authority on which option to pursue. The case analysis phase is
structured to allow for the thorough comparison of all available viable options and
provide justification for the selection of the best option. During this phase, management
is defining the activity in detail, doing baseline costing, setting success objectives,
developing and analyzing the feasibility of options, comparing and assessing risks, and
preparing a business case. As part of the case analysis, the ASD review team will also
be considering employment continuity requirements, transition costs, and
implementation issues such as compliance with the WFAD/WFAA. An important role of
the Civilian Human Resources Officer is to brief management on the HR and labour
relations implications of the options being considered, including associated sensitive
issues and timeframe considerations. Information for the baseline costing of human
resources may also be requested.
Again, keeping unions and employees informed is an ongoing responsibility for which
management should be seeking the assistance of their Civilian Human Resources
Officer. In developing a communication strategy, the following should be considered:

What are the purposes of communication (transmit information
and facts, clarify misunderstanding, mitigate the rumour mill,
celebrate or underline achievement, etc.);

Who is the audience(s) and what are their needs (those directly
or indirectly affected, those involved or in support, stakeholders,
etc.);

What messages and information will be communicated;

When should communication activities take place;

What type of communication means should be used;
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
Who should be the official spokesperson; and,

Who can provide required information
6.35 THE WAY AHEAD
The case analysis phase results in a recommended course of action being presented by the
ASD Review Team Leader to the Responsible Manager for a Way Ahead decision. There are
three possible courses of action that can be recommended:
(a) The implementation of a specific ASD option;
(b) The development of an improved internal option; or
(c) The retention of the current internal delivery mechanism.
The best option is the one that offers the best mix of acceptable risk and potential rewards.
The Executive Authority approves or rejects the recommendation resulting from the case
analysis and approves the next steps of the review. HR responsibilities in this stage are
limited to assisting with the announcement of the result and keeping the lines of
communication open.
6.36 MOST EFFICIENT ORGANIZATION PROCESS
As a means of demonstrating its commitment to the workforce, DND has developed a
Most Efficient Organization (MEO) process for use in ASD projects where appropriate.
When a business case analysis points to contracting out of programs to the private
sector or non-profit sector as the best solution, and when the department has not made
a strategic decision to preclude an MEO arrangement, the responsible manager will
invite the incumbent service provider to prepare an MEO proposal.
The MEO process, as described in the Guide to ASD Methodology, is intended to give
every opportunity to affected DND organizations to demonstrate that they would be able
to provide the service levels and economies equivalent to those expected from private
sector providers. In this case, the contracting process is suspended and the affected
organization is given an opportunity to prepare a proposal that meets or exceeds the
same Statement of Work prepared to solicit contractor bids. The organization is held to
the same standard as any prospective private sector bidder. If the MEO proposal is
accepted, the affected organization proceeds with the implementation of its proposal. If
the proposal is rejected, the contracting process resumes.
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The following are examples of occasions when it may not be appropriate for management to
invite the submission of MEO proposals:
a. Base or unit is to be closed;
b. Private sector capability or expertise is needed;
c. Extensive internal continuous improvement has already taken place without meeting
the desired standards; or
d. Lack of interest from the current workforce.
Should an MEO opportunity not be afforded to the current organization, an interested
employee or employee group can create an Employee Take-Over (ETO) Corporation for the
purpose of preparing a proposal to provide some or similar service in competition with private
sector bidders, or on a sole source basis as recommended by the ASD Review Team case
analysis. Specific guidance on ETO procedures can be found in the Guide to ASD
Methodology.
The role of the Civilian Human Resources Officer is to provide advice to the responsible
manager who will be preparing the MEO proposal and to the ASD review team who will be
assessing the MEO proposal.
6.37 IMPLEMENTATION PHASE
In the Way Ahead decision, the Executive Authority approved the development of an ASD
option based on the Case Analysis. The main activities in this stage include:

Promulgation of the option development and implementation plan;

Preparation of documents required to implement the approved ASD option. If the
approved option involves contracting-out, this stage includes the search for an
adequate service provider to deliver the required service(s) and, if there is more
than one service provider, the selection of a successful bidder through a
competitive process. It is important to note that any contracted solutions must
abide by the departmental policy on Employment Continuity in ASD situations.

Ensuring that the delivery agent is ready to provide the required services;

Winding down the existing DND service provider (if necessary).
The final result of this stage is the selection of a qualified ASD provider, or the rejection of all,
none having been deemed qualified to provide the service.
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Competitive Contracting Process
Once a decision has been made to pursue the contracting out option, the Statement of Work
(SOW) is developed and the Request for Proposals (RFP) is written. A SOW defines, in
unequivocal terms, every aspect of the work that must be performed by a new service provider
to satisfy a requirement. It could include detailed descriptions of the work tasks to be
performed, deliverables/expected results, security or other special requirements, a milestones
schedule, and the standard for measuring contractor performance. The SOW forms part of the
legally binding agreement between the government and the contractor. Therefore, if a task is
omitted, a contractor is not obligated to perform it.
An RFP is a document used to advertise bidding opportunities to potential contractors. The
RFP is a means of asking contractors to propose various configurations that will meet our
basic requirements, as stated in the SOW. The RFP also specifies how bids will be evaluated
and selected.
Departmental Policy on Employment Continuity
From an HR perspective, this is the most important stage. It is critical that the issue of
employment continuity be defined in the RFP as stipulated in the Departmental Policy
on Employment Continuity in ASD Situations.
The evaluation methodology should also include an assessment of the HR transition
costs. It may be advisable for Civilian Human Resources Officers to participate in the
evaluation of employment continuity proposals and they may also be required to
participate in the final negotiation of the details of the job offers with the new employer.
The principles guiding alternative service delivery initiatives place significant onus on
management to secure employment continuity for affected employees. Consequently,
DND is committed to requiring new service providers to make Type 2 job offers to
affected employees as the norm. In assessing whether this norm can be met, the
following factors may be considered:

The external market can support compensation levels reasonably comparable to
those currently enjoyed by affected employees;

The ability to provide RJOs from within the Core Public Administration;

The political climate in which the ASD decision is being taken;

When there is a likelihood that affected employees will end up working for that
employer anyway;
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
The affected employees' skills are not easily found in the external market;

The marketability of affected employees elsewhere;

The community's social and economic situation.
Where the norm of requiring Type 2 job offers from the new service provider cannot be
met, management must seek an exemption from the departmental policy. There must
be consultation between the departmental unions and management at the national joint
consultative committees.
In addition to a requirement for bidders to provide a certain quality of job offer (e.g. Type
2 RJOs) to those affected employees they wish to hire, RFPs must also specify
minimum requirements in terms of the quantity of offers to be made. Any such
requirement would be determined on a case-by-case basis by the ASD review team,
based on the factors discussed under employment continuity above. Whatever these
minimum requirements may be, it is important to pay particular attention to the wording
of these statements (i.e. the use of "shall", "should", or "every effort to" in specifying the
requirement). It is recommended that the requirement be specified in terms of offers to
be made to affected employees versus a requirement to hire a certain number of
affected employees. Depending on the wording used, subsequent offers in the event of
a refusal may have to be made, which could compromise the timelines established for
meeting the transition date. For example, in a Type 3 situation, it is expected that some
employees will refuse the offer of employment with the new service provider. If the
minimum hiring requirement in the RFP is stated as hiring a specified number of
employees or a certain percentage of the work force being comprised of affected DND
employees, the bidder would have to go back and make subsequent offers for each
refusal, unless it is specifically stated that offers made in good faith will count towards
this goal, even if refused. Since each offer includes a 60 day decision period, having to
make subsequent offers could cause problems in having the necessary work force in
place by the transition date. (Amount of time may vary. Check the applicable WFA
policy). By specifying the number of offers to be made to affected employees, whether
as a percentage of the current work force or a specific number, subsequent offers would
not be imposed because attempts to hire employees have been made in good faith.
This does not, however, prevent subsequent offers from being made.
To be an RJO, an offer must, as a minimum, meet the definition of a Type 1 or 2 offer.
The Deputy Head, however, has the discretion to further define an RJO by adding more
conditions. In DND, other factors are taken into consideration, namely the type of job
and the location of the job. If the job offered is in the same location as the employee's
current job, the new job, while it may not be exactly the same, must be similar and
require essentially the same skills as the job currently performed by that employee. For
94
example, while a job as a kitchen helper offered to an electrician could not be
considered an RJO, a job as a cleaner on the base (GS-BUS) offered to a hospital
cleaner (HS-HDO) would.
If the job is in a different geographical location, it can be considered an RJO if the
functions/duties are the same and the job is in support of the activity being contracted
out and provided the new service provider is prepared to offer relocation benefits
comparable to what is available in the Core Public Administration. This requirement
must be clearly specified in the RFP. For example, consider a base cook's position.
The new service provider has operations in different localities and it is more economical
to prepare all the food in one central location and transport the meals to the various
locations being serviced. If the job offered the affected employee is in that central
location where all the food is prepared (including the food for the contracted-out base
service), it could be considered an RJO. If, on the other hand, the food is still prepared
on base but the new service provider offers the employee a job in a kitchen in a different
location, this would not be considered an RJO.
In a case where the job offer is not deemed to be reasonable, the employee would be
advised of this fact by the Department at the time of the offer and informed that should
he/she refuse the offer, he/she would either be guaranteed an RJO or afforded access
to the three options under Part VI.
Implementation Strategy
In addition to assisting with the contracting process, work should begin on an
implementation strategy that will include a human resources strategy and a
communication strategy, if not already developed. An HR strategy includes:

Proposed detailed changes to classification levels, numbers,
tenure, etc;

Confirmation of work force adjustment and complementary
benefits and their costs;

Identification of personnel who will experience a change in
employment status and who may be moving to the new entity;

Identification of employees for whom there will not be continuing
work and who will leave the organization, the Department or the
Public Service;

Identification of employees not part of the transfer to a new alternative
delivery organization but affected by it who may need help in dealing
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with the possible additional work load and their reactions to the
changes; and

A training strategy, training requirements and related costs.
Once the successful bidder is identified, more detailed HR plans can be made. Another
element of the implementation strategy could be to conduct an employee survey to determine
the preferences of those affected in order to maximize the number of "win/win" situations. The
appropriateness of such a survey will depend on the extent to which employee preferences
could be accommodated by the ASD option selected. The timing of the survey between this
stage and the next will also depend on the individual ASD situation.
Having secured an agreement/contract with a new service provider, the implementation
stage consists of finalizing the details of the implementation plans, implementing the
option and completing the transition to the new entity. The result of this stage is a fully
operational ASD provider.
It is during this stage that the new service provider will make offers of employment to
our affected employees. This will require finalization and implementation of the HR
strategy. At this point, many of the details of the HR strategy can now be filled in to
specify what needs to happen when. For example, the options available to individual
employees and the specific details related to each can now be determined, including
dates.
An employee transfer agreement (ETA) is a document prepared subsequent to the
competitive contracting process or negotiations between the parties, which contains
specific details relating to the transfer of employees from the Core Public Administration
to the new employer. A formalization of what the successful bidder proposed, the ETA
could be attached as an Annex to the contract, or contained within the contract itself.
Essentially, the ETA is what needs to be included in the contract from an HR point of
view. An ETA could include details on the type of employment offered including
numbers and timing of offers, salary and other terms and conditions of employment,
recognition of continuous employment, probation, health, dental, and long-term disability
insurance and other benefits, recognition and carry-over of vacation leave credits,
pension plans, etc. This information should also be outlined in the letter of offer from
the new service provider as the offer forms a binding employment contract between the
employee and the new employer.
One role of the Civilian Human Resources Officer during this stage will be in the
coordination of job offers from the new employer. This will include assisting with the
provision of notice in conjunction with the new service provider's offer, counselling
employees on their options, processing terminations under the FAA, and actioning
transition payments. Employees who do not receive offers of continuing employment
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with the new service provider will either be guaranteed a reasonable job offer in the
Core Public Administration or offered the options under Part VI of the WFAA/WFAD.
6.38 VERIFICATION PHASE
Work at this phase verifies the results of the ASD implementation against the expected
success objectives. The ASD review team will monitor both the technical and the HR
components of the contract for compliance. This will include a review of all the terms
and conditions relating to offers of employment made by the new service provider that
are stipulated in the contract and /or the Employee Transfer Agreement. The means by
which the contract will be monitored and any consequences for non-compliance will be
determined by the ASD review team.
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PART 6 ANNEXES:
Annex 6-A
Description of Types of Job Offers in ADI Situations
Annex 6-B
Sample Notice to Employees Offered Type 1 Employment with New
Service Provider
Annex 6-C
Sample Notice to Employees Offered Type 2 Employment with New
Service Provider
Annex 6-D
Sample Notice to Employees Offered Type 3 Employment with New
Service Provider (Employees declining offer to be provided with GRJO)
Annex 6-E
Sample Notice to Employees Offered Type 3 Employment with New
Service Provider (Employees declining offer to be offered the Options
under Part VI)
Annex 6-F
Sample Notice of Termination Following Refusal of Type 1 & 2 Job Offers
Annex 6-G
Sample Notice of Termination Upon Acceptance of Job Offer (Types 1, 2,
&3)
Annex 6-H
Sample Request for Consent to Release Personal Information to the New
Service Provider for Those Employees Offered Employment
Annex 6-I
Consent Form
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Annex 6-A
DESCRIPTION OF TYPES OF JOB OFFERS IN ADI SITUATIONS
OFFER
Accept
ENTITLEMENTS
Refuse
TYPE 1
 Considered an RJO
 Carry over of collective agreements and
unions (successor rights - without NJC
directives and policies)
 Continuous employment recognized
 Reasonable pension arrangements
 Core benefits coverage: health benefits,
long term disability and dental
 Recognition of unused sick leave credits
up to a maximum LTDI waiting period
 Minimum 2 year employment guarantee
 60 calendar days to consider job offer
 3 month lump sum if pension standard not
met
 No entitlements to Options (including TSM)
 Deferral of severance pay
 No priority rights
 Option to carry-over annual leave (if new
employer agrees)
TYPE 2
 60 calendar days to consider offer
 3 month lump sum + 18 mo. salary top-up
 Additional 6 mo. salary top-up if individual
salary less then 80%
 3 month lump sum if pension standard not
met
 No entitlement to Options (including TSM)
 No Priority rights
 Deferral of severance if new employer
recognizes service and provides similar
severance entitlement or else paid out at layoff rate
 Option to carry-over annual leave (if new
employer agrees)




Considered an RJO
Avg. Salary for group moving > or = 85%
Reasonable pension arrangements
Core benefits coverage: health benefits,
long term disability and dental
 Short term disability arrangement
 Minimum 2 year employment guarantee or
indeterminate tenure with new employer
TYPE 3
 Not an RJO
 Avg. Salary for group moving < 85% and/or
one element missing from Type 2
 60 calendar days to accept offer (NoteAmount of time may vary. Check applicable
WFA policy.)
 6 mo. lump sum + 1 yr. Salary top-up to a
combined maximum of 1 yr. Salary
 No entitlements to Options (including TSM)
 Severance pay at lay-off rate
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 4 month notice of termination
 No entitlements to Options (including
TSM)
 Lay-off priority rights
 Severance pay at lay-off rate
 Possibility of 6 month retention payment
 4 month notice of termination
 No entitlements to Options (including
TSM)
 Lay-off priority rights
 Severance pay at lay-off rate
 Possibility of 6 month retention payment
 GRJO or Options (including TSM)
applicable to surplus employees
Annex 6-A
 Lay-off priority rights
100
Annex 6-B
SAMPLE NOTICE TO EMPLOYEES OFFERED TYPE 1
EMPLOYMENT WITH NEW SERVICE PROVIDER
This is to advise you that the offer of continuing employment you have received from
(Name of ADI Provider) is deemed to be a Type 1 reasonable job offer for the purposes
of the Work Force Adjustment Appendix (or Work Force Adjustment Directive, as
applicable). You must decide within the next 60 calendar days whether you wish to
accept this offer. Should you choose to accept the offer, your employment with the
Core Public Administration will be terminated on (transfer date) in accordance with
paragraph 12 (1)(f)of the Financial Administration Act. As the pension arrangements
included with this offer do not meet the test of reasonableness as defined in the
Statement of Pension Principles, you are entitled to a lump-sum payment
equivalent to three months' salary, payable on the date of transfer. (Note)
If you decide not to accept the offer, you will be given four months' notice of termination
in accordance with Section 12 (1)(f) of the Financial Administration Act. Once your
employment is terminated, you will be entitled to a priority for appointment without
competition to any position in the Core Public Administration for which, in the opinion of
the Public Service Commission (PSC), you are qualified. Your priority will cease upon
indeterminate appointment to another position in the Core Public Administration, if you
refuse an indeterminate appointment without sufficient reason, or one year from your
termination of employment date, whichever comes first.
(Name of Civilian Human Resources Officer) has been identified as your contact for all
human resources matters and can be reached at (telephone number), if you have any
questions or concerns.
Please indicate your intentions below and return to (Name of Civilian Human Resources
Officer) no later than _____________. If you have not responded by that date, it will be
deemed that you have refused the offer of employment.
In closing, I would like to thank you for your service to the Department and I encourage
you to give serious consideration to this offer of continuing employment.
To be signed by the delegated authority
101
Annex 6-B
___
I am accepting/have accepted the offer of employment.
___
I am declining/have declined the offer of employment.
_____________________________
Signature
____________
Date
Note: Include this sentence only if the pension standard is not met
102
Annex 6-C
SAMPLE NOTICE TO EMPLOYEES OFFERED TYPE 2 EMPLOYMENT
WITH NEW SERVICE PROVIDER
This is to advise you that the offer of continuing employment you have received from
(Name of ADI Provider) is deemed to be a Type 2 reasonable job offer for the purposes
of the Work Force Adjustment Appendix (or Work Force Adjustment Directive, as
applicable). You must decide within the next 60 calendar days whether you wish to
accept this offer.
Should you choose to accept the offer, your employment with the Core Public
Administration will be terminated on (transfer date) in accordance with paragraph 12
(1)(f) of the Financial Administration Act. By accepting the offer, you will receive a
lump-sum payment equivalent to three months of your current salary, plus an 18 month
salary top-up allowance equivalent to the difference between the salary of your current
and new positions, also paid as a lump sum, payable on the day of transfer to the new
employer. You will also receive an additional six-month salary top-up allowance,
paid as a lump sum on the date of transfer, due to the fact that your new salary is
less than 80% of your current salary with the Core Public Administration (Note 1).
As the pension arrangements included with this offer do not meet the test of
reasonableness as defined in the Statement of Pension Principles, you are also
entitled to a lump-sum payment equivalent to 3 months' salary, again payable on
the date of transfer (Note 2).
If you decide not to accept the offer, you will be given four months' notice of termination
in accordance with Section 12 (1)(f) of the Financial Administration Act. Once your
employment is terminated, you will be entitled to a priority for appointment without
competition to any position in the Core Public Administration for which, in the opinion of
the Public Service Commission (PSC), you are qualified. Your priority will cease upon
indeterminate appointment to another position in the Core Public Administration, if you
refuse an indeterminate appointment without sufficient reason, or one year from your
termination of employment date, whichever comes first.
(Name of Civilian Human Resources Officer) has been identified as your contact for all
human resources matters and can be reached at (telephone number), if you have any
questions or concerns.
Please indicate your intentions below and return to (Name of Civilian Human Resources
Officer no later than _____________. If you have not responded by that date, it will be
deemed that you have refused the offer of employment.
In closing, I would like to thank you for your service to the Department and I encourage
you to give serious consideration to this offer of continuing employment.
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Annex 6-C
To be signed by the delegated authority
___
I am accepting/have accepted the offer of employment.
___
I am declining/have declined the offer of employment.
_____________________________
Signature
____________
Date
Note 1: Include this sentence only if the individual's salary with the new employer
is less than 80% of his or her federal salary.
Note 2: Include this sentence only if the pension standard is not met.
104
Annex 6-D
SAMPLE NOTICE TO EMPLOYEES OFFERED TYPE 3 EMPLOYMENT
WITH NEW SERVICE PROVIDER (Employee declining offer to be
provided with GRJO)
This is to advise you that the offer of continuing employment you have received from
(Name of ADI Provider) is classified as a Type 3 offer and as such, does not meet the
definition of a reasonable job offer for the purposes of the Work Force Adjustment
Appendix (or Work Force Adjustment Directive, as applicable). You must decide
within the next 60 calendar days whether you wish to accept this offer.
Should you choose to accept the offer, your employment with the Core Public
Administration will be terminated on (transfer date) in accordance with Section 12 (1)(f)
of the Financial Administration Act. By accepting the offer, you will receive a lump-sum
payment equivalent to six months of your current salary, plus a 12-month salary top-up
allowance equivalent to the difference between the salary of your current and new
positions, also paid as a lump sum, to a combined maximum of 1 year's salary, payable
on the day of transfer to the new employer. Once your employment is terminated, you
will also be entitled to a priority for appointment without competition to any position in
the Core Public Administration for which, in the opinion of the Public Service
Commission (PSC), you are qualified. Your priority will cease upon indeterminate
appointment to another position in the Core Public Administration, if you refuse an
indeterminate appointment without sufficient reason, or one year from your termination
of employment date, whichever comes first.
If you decide not to accept the offer, you will be declared surplus and provided with a
guarantee of a reasonable job offer elsewhere in the Core Public Administration. As a
surplus employee, you will be granted priority rights for reappointment within the Core
Public Administration until a reasonable job offer is made to you. You will be
guaranteed at least one reasonable job offer during your surplus period, provided you
are mobile and retrainable. If you refuse a reasonable job offer, you will be subject to
lay-off with one month's notice. This lay-off, however, would not occur before six
months from the date you are declared surplus.
(Name of Civilian Human Resources Officer) has been identified as your contact for all
human resources matters and can be reached at (telephone number), if you have any
questions or concerns.
Please indicate your intentions below and return to (Name of Civilian Human Resources
Officer) no later than _____________. If you have not responded by that date, it will be
deemed that you have refused the offer of employment.
105
Annex 6-D
In closing, I would like to thank you for your service to the Department and I encourage
you to give serious consideration to this offer of continuing employment.
To be signed by delegated authority
___
I am accepting/have accepted the offer of employment.
___
I am declining/have declined the offer of employment.
_____________________________
Signature
____________
Date
Note – Amount of time may vary. Check the wording of the applicable WFA policy.
106
Annex 6-E
SAMPLE NOTICE TO EMPLOYEES OFFERED TYPE 3 EMPLOYMENT
WITH NEW SERVICE PROVIDER (Employee declining offer to be
offered the Options under Part VI)
This is to advise you that the offer of continuing employment you have received from
(Name of ADI Provider) is classified as a Type 3 offer and as such, does not meet the
definition of a reasonable job offer for the purposes of the Work Force Adjustment
Appendix (or Work Force Adjustment Directive, as applicable). You must decide
within the next 60 calendar days (30 days under PSAC WFAA) whether you wish to
accept this offer.
Should you choose to accept the offer, your employment with the Core Public
Administration will be terminated on (transfer date) in accordance with Section 12 (1)(f)
of the Financial Administration Act. By accepting the offer, you will receive a lump-sum
payment equivalent to six months of your current salary, plus a 12-month salary top-up
allowance equivalent to the difference between the salary of your current and new
positions, also paid as a lump sum, to a combined maximum of one year's salary,
payable on the day of transfer to the new employer. Once your employment is
terminated, you will also be entitled to a priority for appointment without competition to
any position in the Core Public Administration for which, in the opinion of the Public
Service Commission (PSC), you are qualified. Your priority will cease upon
indeterminate appointment to another position in the Core Public Administration, if you
refuse an indeterminate appointment without sufficient reason, or one year from your
termination of employment date, whichever comes first.
If you decide not to accept the offer, the Department cannot provide you with a
guarantee of a reasonable job offer as there is no other employment currently available
for you, not can we predict employment availability for you within the foreseeable future.
In accordance with the Work Force Adjustment Appendix (or Directive), a copy of
which is enclosed, the following options are therefore available to you should you
decline the offer of employment with the new service provider:
(a)
A 12-month paid surplus priority period in which to secure a reasonable job offer
within the Core Public Administration, followed by lay-off if you have not been
appointed or deployed to another position during that period. If you refuse a
reasonable job offer, you can be laid-off one month after the refusal, but not
before six months after you are declared surplus. If you wish to resign before
the end of the 12-month surplus period, you can request Pay in Lieu of
Unfulfilled Surplus Period (PIL) for the balance of the surplus period, up to a
maximum of 6 months' pay. Please note that the amount of PIL cannot exceed
the value of the Transition Support Measure (TSM) that you would have
received had you chosen this option. A request for PIL can only be approved if
107
Annex 6-E
your work can be discontinued on your resignation date and no additional costs
will be incurred in having your work done in any other way.
OR
(b)
A Transition Support Measure (TSM) which is a cash payment based on your
years of service and paid at your substantive level, in exchange for your
resignation from the Core Public Administration. The TSM can be paid in one or
two lump-sum amounts over a maximum period of two years.
OR
(c)
An Education Allowance which is a TSM plus an amount of not more than
$11,000 (Note) for reimbursement of receipted expenses for books, mandatory
equipment and tuition at a learning institution. The allowance is payable in one
or two lump-sum payments over a maximum two-year period. In choosing this
option, you may opt to either:
(i)
Resign on the specified departure date but be considered to be laid-off for
purposes of severance payments; or
(ii)
Delay your separation date and go on leave without pay for a maximum
period of two years while attending a learning institution. During this
period, you may continue to be a benefit plan member and contribute both
the employer and employee shares to the benefit plans and the Public
Service superannuation plan. Following the period of leave, you would be
laid-off, and as a result, enjoy priority consideration for positions in the
Core Public Administration for a period of one year. If you do not submit
proof of registration within 12 months after starting your leave, you will be
deemed to have resigned and be considered to be laid-off for purposes of
severance pay only.
You have a 120-day decision period to consider these options. During this time,
counseling and advice on redeployment opportunities will be provided to you to facilitate
your decision. You are also entitled to up to $600 (Note) for the purpose of obtaining
financial and job placement counselling services. I must inform you, however, that
should you receive a reasonable job offer prior to selecting an option, the options will no
longer be available to you.
Should you decline the job offer, your decision with respect to these options, in writing,
using the attached form, must be submitted to your manager or the Civilian Human
Resources Officer indicated below no late than (day following the end of the option
decision period). If you decline the job offer and fail to select an option, you will be
108
Annex 6-E
deemed to have selected Option a) - 12-month surplus priority period in which to secure
a reasonable job offer.
You will only be declared surplus if you accept Option a). If you decide to accept Option
b) or c)(i), you must resign on a date determined by management. Your departure date
if you select either of these two options will be (date determined by management). This
date will also be the date of commencement of your leave without pay period if you
select Option c)(ii).
Enclosed is a statement of your estimated benefits in relation to your options. Details
regarding this statement can be obtained from your Civilian Human Resources Officer.
If it is your wish to remain in the Core Public Administration you may be able to
exchange positions with another employee who is not affected by work force reductions
but who wants to take advantage of one of the options as an alternate. This exchange,
however, can only occur during this option decision period and if you meet the qualifying
criteria of the alternate's position. It is, therefore, important for you to inform your
Civilian Human Resources Officer or your manager as soon as possible if you wish to
continue working in the Core Public Administration so that attempts may be made to
locate a suitable alternate.
Please indicate below your intentions with respect to the job offer and return to (Name
of designated officer) no later than _____________. If you have not responded by that
date, it will be deemed that you have refused the offer of employment. Should you
decline this offer, your decision with respect to your selection of options must be
submitted in writing, using the attached form, to (indicate appropriate Civilian Human
Resources Officer or manager) no later than (day following the end of the decision
period). Once you have made your choice, you will not be able to change options. If
you fail to select an option, you will be deemed to have selected Option a) redeployment efforts for a period of 12 months.
(Name of Civilian Human Resources Officer) has been identified as your contact for all
human resources matters and can be reached at (telephone number), if you have any
questions or concerns.
109
Annex 6-E
In closing, I would like to thank you for your service to the Department and I encourage
you to give serious consideration to this offer of continuing employment.
To be signed by the delegated authority
___
I am accepting/have accepted the offer of employment.
___
I am declining/have declined the offer of employment.
_____________________________
Signature
____________
Date
Note: Amount may vary. Check the wording of the applicable WFA policy.
110
Annex 6-F
SAMPLE NOTICE OF TERMINATION FOLLOWING REFUSAL OF
TYPES 1 & 2 JOB OFFERS
The purpose of this letter is to confirm that as you have refused a reasonable job offer
within the meaning of the Work Force Adjustment Appendix (or Work Force
Adjustment Directive, as applicable), you will be terminated from the Core Public
Administration on (four months from date of notice), in accordance with the
provisions of Section 12 (1)(f) of the Financial Administration Act.
Once your employment is terminated, you will be entitled to a priority for appointment
without competition to any position in the Core Public Administration for which, in the
opinion of the Public Service Commission (PSC), you are qualified. Your priority will
cease upon indeterminate appointment to another position in the Core Public
Administration, or if you refuse an indeterminate appointment without sufficient reason,
or one year from your termination of employment date, whichever comes first. You will
also be entitled to enter any competition for which you would have been eligible
previously as an employee. It is, therefore, important that you advise the PSC and the
Department of any change in your telephone number or mailing address.
(Name of Civilian Human Resources Officer) has been identified as your contact for all
human resources matters and can be reached at (telephone number), if you have any
questions.
In closing, I would like to thank you for your service to the Department and I wish you
success in the future.
To be signed by the delegated authority
111
Annex 6-G
SAMPLE NOTICE OF TERMINATION UPON ACCEPTANCE OF JOB
OFFER (TYPES 1, 2, & 3)
The purpose of this letter is to advise that as you have accepted an offer of continuing
employment with (Name of ADI Provider), your employment with the Core Public
Administration will be terminated on (transfer date), in accordance with the provisions of
Section 12 (1)(f) of the Financial Administration Act.
As you have accepted a job that is not deemed to be a reasonable job offer under
the Work Force Adjustment Appendix (or Work Force Adjustment Directive, as
applicable), you are entitled to a priority for appointment to any position in the
Core Public Administration for which, in the opinion of the Public Service
Commission (PSC), you are qualified. Your priority will cease upon indeterminate
appointment to another position in the Core Public Administration, or if you
refuse an indeterminate appointment without sufficient reason, or one year from
your termination of employment date, whichever comes first. You will also be
entitled to enter any process for which you would have been eligible previously
as an employee. (Note)
In closing, I would like to thank you for your service to the Department and I wish you
success in the future.
To be signed by the delegated authority
Note: Include this paragraph only in Type 3 situations.
112
Annex 6-I
SAMPLE REQUEST FOR CONSENT TO RELEASE PERSONAL
INFORMATION TO THE NEW SERVICE PROVIDER FOR THOSE
EMPLOYEES OFFERED EMPLOYMENT
Enclosed is a consent form seeking your authorization to release specific personal
information relating to your employment with the Core Public Administration of Canada
to (Name of new service provider) in order to continue the administration of your pay,
benefits and pension, as applicable, after the transfer date.
The required data is personal information about you, and is governed by the Privacy
Act. A refusal to sign the consent form will not jeopardize the offer of continuing
employment. However, you should be aware that delays in providing this information
could result in delays in receiving your first pay cheque from (Name of new service
provider). Please be assured that your personnel file related to your employment in the
Core Public Administration will remain with the Government of Canada.
If you agree to the release of the required information, please sign the enclosed consent
form and return it to (Name of contact), by (enter date). Please be advised that you
have the right to examine your personnel file to ensure that the information is accurate
and up-to-date.
Encl. 1
Note: This letter should be issued only once an employee has accepted
employment with the new service provider.
113
CONSENT FORM
I hereby authorize the Government of Canada to release to (name of new employer),
personal information which is currently held on my departmental file, such as that which
is listed below. The information released will be used only for the purposes of
continuing the administration of my pay, benefits, and/or pension plan, as applicable.





Family name
First name and initial
Date of birth
Sex
Single or with dependants



Bargaining unit designator
Employee status (i.e. represented, excluded, or unrepresented)
Union dues










Employee classification
Employment Tenure (Indeterminate or Term)
Scheduled/Assigned hours of work
Employee Status (Full-time, Seasonal, Part-time etc.)
Base salary + Equalization Adjustment
Supervisory differential
Allowances
Next increment date on basic pay
TD-1 taxation information
Years of continuous employment for leave and severance pay entitlement,
and for long service pay.
Years of continuous/discontinuous service for leave purposes
Years of contributory service for pension purposes
Earned but unused sick leave credits
Year to date information on EI contributions; CPP/QPP contributions; and
Superannuation contributions (including arrears)




Employee Name:
Employee Signature:
Date:
__________________
(Please print)
_________________________
________________
114