# 2012-141 Pay and Benefits, Discretionary power of the MND under CBI 209.013, Relocation Expenses

Case Summary

F&R Date: 2013–02–27

The grievor, part of a married service couple, was posted while his spouse remained at the current location. The grievor would have preferred to remain in quarters but Base policy prohibited it. The grievor obtained an apartment close to work and signed a one year lease, which was standard for the area. Two months later, he was informed that he would be posted back to his previous location at the end of the third month. As a result, the grievor was required to break his lease with nine months remaining.

The grievor sought assistance from relocation authorities and his chain of command who agreed to a 30-day delay of reporting date, reducing the time remaining on the lease to eight months. The Director Compensation and Benefits Administration (DCBA) staff had initially denied any compensation but eventually used Ministerial Authority to reimburse the grievor for three months of rent liability based on a benefit in Compensation and Benefits Instruction 209.997 which came into effect after the grievor's posting. Ultimately, the landlord was able to find a new tenant for the apartment for the final four months of the lease leaving the grievor responsible for only four months and a finder's fee. Thus the grievor remained out of pocket for one month of rent and the finder's fee.

The Board reviewed the particular policies that were in effect at the time and determined that since the rented accommodation was not the grievor's principal residence, he did not fall squarely within any policy. However, the Board agreed with the grievor that he should not be financially disadvantaged by the short notice posting. The Board agreed with the DCBA decision to invoke Ministerial Authority but believed that the grievor should be awarded compensation similar to other Canadian Forces members who are posted and fall within the parameters of article 7.03 of the Canadian Forces Integrated Relocation Program. Accordingly, the Board recommended that Ministerial Authority be granted to reimburse the grievor for four months of rent liability. Unfortunately, there were no provisions under the tenancy act whereby a landlord could charge a finder's fee to a previous tenant relative to the new occupants unless there was a sublet or assignment agreement, which was not the case for the grievor. Therefore, this expense did not fall within the parameters of article 7.03 of Canadian Forces Integrated Relocation Program and Ministerial Authority could not be granted to reimburse this expense.

CDS Decision Summary

CDS Decision Date: 2013–12–16

The CDS agreed with the Committee's recommendation that the grievance be upheld. The CDS disagreed with the Committee's finding that article 7.03 Canadian Forces Integrated Relocation Program (CFIRP) could only be used as a guide to determine the amount of a reimbursement under Ministerial Authority. The CDS found that the definition of "principal residence" as an owned dwelling had to be disregarded with respect to rental benefits in Chapter 7 of the CFIRP 2009; finding otherwise would mean that the rental benefits found in Chapter 7 would not be available. As redress, the CDS directed that the grievor be reimbursed for all of the months of rent charged by the landlord and the finder's fee.