Learn if the vacation and compensatory leave cash-out for 2022-2026 applies to you!

February 28, 2022 - Defence Stories

As of 1 April 2022, Treasury Board Secretariat (TBS) is lifting the suspension on the automatic cash-out of vacation and compensatory leave. Beginning in April 2022, payments will be issued to gradually reduce employees’ excess vacation and compensatory leave balances that may have accumulated since 2016.

For more information about the mandatory leave cash-out process, go to the Vacation and compensatory leave cash-out for 2022-26 website (accessible only on the National Defence network).

Follow these steps to confirm if the vacation leave cash-out applies to you:

Step 1: Check your collective agreement (accessible only on the National Defence network) to review the details of the leave carry-over and liquidation provisions to determine if you are subject to a carry-over limit provision. If applicable, confirm how many hours you are allowed to carry over.

Step 2: Go to PeopleSoft (HRMS) and see what your leave balance will be as of 31 March.

• If your leave year-end balance on 31 March is less than your carry-over limit in your collective agreement, this cash-out does not apply to you.
• If your leave year-end balance on 31 March is more than your carry-over limit in your collective agreement, this cash-out applies to you.

Step 3: For examples of potential cash-out scenarios, read the Vacation leave cash-out scenarios (accessible only on the National Defence network).

Employees with a compensatory leave balance on March 31, 2022 will receive a cash-out of 20% per year from March 31, 2022, to March 31, 2026. Unused compensatory leave earned between April 1, 2021, to March 31, 2022, and during each subsequent fiscal year will also be paid according to the provisions of the applicable collective agreement or terms and conditions of employment.

For more information about the mandatory leave cash-out process, read the Leave cash-out – Guide for managers and employees (accessible only on the National Defence network) or contact HR Connect RH online (accessible only on the National Defence network) or by calling 1-833-747-6363 (for Defence Team use only).