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Workforce adjustment in the core public administration

If you have recently been advised that your position is affected by a workforce adjustment situation, the following information is meant to provide you with an overview of the workforce adjustment process and your options. Your manager is responsible for guiding and supporting you throughout the process. You can also contact your bargaining agent.

This content has been written in plain language for clarity. For the formal text, refer to the National Joint Council’s Work Force Adjustment Directive or applicable collective agreement appendix.

Note that this information applies only to the core public administration (CPA). Provisions may differ for employees outside of the CPA. Consult each organization as required.

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What is workforce adjustment

Workforce adjustment (WFA) is the process organizations use in the core public administration when it has been determined that a position is no longer required due to a lack of work, a discontinuance of a function, a relocation of a work unit in which the employee does not wish to relocate, or an alternative delivery initiative. As outlined in collective agreements, employees must be informed that their position may be affected.

The WFA process is meant to ensure that, wherever possible, alternative employment opportunities are provided to employees in WFA situations. Where appropriate, the WFA process provides supports for employees who leave the CPA under WFA.

Who workforce adjustment applies to

WFA provisions apply to indeterminate employees in the CPA.

Employees who are represented by the Public Service Alliance of Canada (PSAC) and Professional Institute of the Public Service of Canada (PIPSC) are covered by the WFA appendix of their collective agreement. All other non-executive employees, including unrepresented employees, are subject to the National Joint Council (NJC)’s Work Force Adjustment Directive.

The NJC WFA Directive was co-developed with bargaining agents through the NJC and is subject to cyclical reviews. WFA appendices in the PSAC and PIPSC collective agreements were negotiated with bargaining agents through collective bargaining. In all cases, WFA provisions must be respected.

While WFA provisions do not apply to the Executive (EX) group, there are separate career transition measures for executives, found in appendices E, F and G of the Directive on Terms and Conditions of Employment for Executives.

Workforce adjustment process

Employees who receive a notification of affected status are those whose position may be eliminated, while employees who receive a notification of WFA status are those whose position is being eliminated.

Affected status

Where an employee’s position may no longer be required, the deputy head of the organization must notify the employee in that position, in writing, that their services may no longer be required. This happens when the organization needs to perform more analysis. This analysis could lead to establishing a voluntary departure program, if required, and/or implementing a selection of employees for retention or layoff process.

Voluntary departure programs

When five or more employees at the same group and level and in the same work unit are notified that their services may no longer be required, an organization must establish a voluntary departure program (VDP). Employees who want to leave the CPA under the VDP will have 30 days during which they can then choose from different options. Those who are subject to the NJC WFA Directive or a PSAC collective agreement can choose option B or C. Those under a PIPSC collective agreement can choose option A, B or C.

If enough employees volunteer under the VDP, the remaining employees will receive a letter informing them that they are no longer in a WFA situation. If the number of volunteers is larger than the number of positions that need to be eliminated, volunteers will be selected for voluntary departure based on seniority.

Selection of employees for retention or layoff

If, after a VDP, there are still more employees remaining than available positions, the organization will start a Selection of Employees for Retention or Lay Off (SERLO) process to determine which employees will be retained or laid off.

The SERLO process is governed by regulations, and guidance for managers is provided by the Public Service Commission. The SERLO process is designed to ensure fairness and transparency in the selection of employees for retention or lay-off.

Delegated managers must inform employees included in the SERLO, in writing, of the most relevant qualifications needed for the work to be performed, and the operational requirements and needs of the organization ; the assessment methods that will be used; and the fact that employees can request accommodation measures and the process for doing so. The delegated manager will then assess employees included in the SERLO process and select those for retention and those for lay-off.

Following completion of the SERLO process, employees who are retained will receive a letter informing them that their position is no longer affected. Employees who are selected for layoff will receive a letter informing them of their WFA status.

Workforce adjustment status

The deputy head of an organization determines whether an employee with WFA status will be declared:

  • surplus with a guarantee of a reasonable job offer; or
  • opting and provided with WFA options

An employee who is declared surplus with a guarantee of a reasonable job offer can expect to be offered another job within the CPA, normally at an equivalent level.

An employee who is declared opting must select one of the following options within 120 days:

Option A: 12-month surplus priority entitlement

  • The employee has a 12-month paid surplus priority entitlement to secure a reasonable job offer in the public service.
  • If a reasonable job offer is not secured by the end of this period, the employee will be laid off.

Option B: Transition support measure

  • The employee resigns and receives a cash payment based on their years of service (the amount is found in appendix C of the NJC WFA directive or in the WFA appendices of PSAC and PIPSC collective agreements).

Option C: Education allowance

  • Option C(i)
    The employee resigns, receives a cash payment and an education allowance to attend a recognized learning institution.
  • Option C(ii)
    The employee receives a cash payment, an education allowance and up to two years of leave without pay while attending a recognized learning institution. If a reasonable job offer is not secured at the end of their leave without pay, the employee will be laid off.

If an employee does not confirm their selection within the 120-day period, option A will apply.

For more details on the options, see section 6.4 of the NJC WFA directive or the WFA appendices of PSAC and PIPSC collective agreements.

Alternation

Alternation allows employees who are opting (within the 120-day opting period) and those who have chosen option A to exchange positions with an employee who is in a position that is not “affected” by a WFA situation and is willing to leave the CPA.

All organizations in the CPA must participate in the alternation process. Managers must consider alternation requests and ensure the employee meets the requirements for appointment to the position before agreeing to an alternation.

Roles and responsibilities

All employees are responsible for informing themselves and speaking with their manager, human resources or union representative if they have questions or concerns.

Opting employees are responsible for:

  • reviewing their options
  • informing their manager, in writing, which option they are choosing within 120 days of receiving an opting letter

Employees who have a guaranteed reasonable job offer or who choose option A, as well as individuals who have a layoff priority entitlement, are responsible for actively looking for a new position.

Managers are responsible for:

  • sharing information with employees
  • directing employees to human resources for more information, if needed
  • helping with the alternation process, if required
  • helping to match employees with available positions

Human resources are responsible for:

  • sending affected, opting, surplus and layoff letters to employees
  • providing information to employees and their managers
  • helping to match employees with available positions

Related information

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2025-11-04