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Selection of employees for retention or lay-off: Guide for managers and human resources specialists

Table of Contents

Context

The purpose of this guide is to assist delegated managers and human resources specialists in exploring and completing activities that may be required prior to conducting a selection of employees for retention or lay-off (SERLO), conducting a SERLO, and responsibilities after a SERLO. As each organization and situation is unique, the order of some steps may change, or some steps may not be applicable. Organizations should refer to their delegation of human resources authorities instrument to determine who is accountable for the various activities.

The information in this guide is intended for organizations for which Treasury Board is the employer and for which the Public Service Commission of Canada has the authority for appointments pursuant to the Public Service Employment Act (PSEA). Organizations which are their own employer should consult their enabling legislation, policies, and directives.

The Regulations Amending the Public Service Employment Regulations, that came into force on January 29, 2025, introduced changes to the requirements of a SERLO. This guide reflects these changes and applies if employees have been advised, in writing, on or after January 29, 2025, that they are an “affected employee” or subject to a workforce adjustment situation in accordance with the Work Force Adjustment Directive or the workforce adjustment appendix of the relevant collective agreement.

This guide applies to represented, unrepresented and excluded employees.

This guide should be read in conjunction with the Public Service Employment Act, the Public Service Employment Regulations, the National Joint Council Work Force Adjustment Directive (WFAD), the workforce adjustment appendices of the relevant collective agreements, and the Directive on Terms and Conditions of Employment for Executives. While executives within the core public administration may be included in a SERLO, executives are subject to the Career Transition Appendices E, F, and G of the Directive on Terms and Conditions of Employment for Executives. 

Workforce adjustment or career transition situations can be unsettling for everyone involved. Employee Assistance Programs, Informal Conflict Management System Services, or organizational counselling services are available to all employees and managers.

People management strategies

Conducting proper human resources planning and using people management strategies early will minimize the impact of workforce adjustment or career transition on employees, on the organization, and on the public service.

People management strategies can include staffing control mechanisms, managing temporary resources, and attrition.

Staffing control mechanisms involve implementing restrictions to some or all staffing activities. Examples include staffing only essential positions, not using advertised external appointment processes, or limiting appointments or deployments from outside the organization. It can also include restricting the staffing delegation to a higher level of management in the organization or creating a staffing review committee to oversee certain staffing activities.

Pursuant to the WFAD and the workforce adjustment appendices of the relevant collective agreements, organizations must review their complement of temporary resources, including employees who are appointed for a specified term, students, casual workers, contractors, and consultants. Temporary resources also include employees who are appointed on an acting basis, employees who are on assignment within the organization or on secondment from another organization, and Interchange Canada participants. The use of temporary resources should be considered on a case-by-case basis. Organizations may wish to consider the impact of cumulative work periods towards the conversion of term employees to indeterminate status pursuant to subsection 4.2.3 of the Directive on Term Employment.

Attrition is a reduction in the number of employees in an organization by way of appointments and deployments outside of the organization, and retirements and resignations, as they happen. When a position becomes vacant, delegated managers can choose not to staff the position, leaving it vacant. A position can only be considered for attrition if an employee has accepted an offer of employment or has confirmed, in writing, that they will retire or resign on a specific date.

For executive positions, organizations must contact the Leadership Policies Division of the Treasury Board Secretariat of Canada - Office of the Chief Human Resources Officer’s (TBS-OCHRO) when conducting human resources planning and prior to career transition activities.

For additional information and support related to people management strategies, please refer to the following policies:

Prior to conducting a selection of employees for retention or lay-off

Step 1: Determine the desired current and future state of the organization

Delegated managers, with the assistance of their human resources specialist, should consult their departmental plan and HR plan to clearly understand the organization’s current and future programs, services, and priorities. An environmental scan, which can include a workforce analysis (including the representation rate of Employment Equity designated groups) and a skills gap analysis, will assist delegated managers in making decisions that serve the interests of the organization, now and in the future.

For additional information and support related to this step, please refer to the following:

Step 2: Determine the affected part(s) of the organization

In accordance with subsection 64(1) of the PSEA, where the services of an employee are no longer required by reason of a lack of work, the discontinuance of a function, or the transfer of work or a function outside certain portions of the federal public administration, organizations may advise and lay off an employee in accordance with the Public Service Employment Regulations (PSER).

As described in subsection 64(2)of the PSEA, where some but not all of the employees in any part of the organization will be laid off, the selection of employees for retention or lay-off (SERLO) shall also be in accordance with the PSER.

Based on the organization’s current and future programs, services and priorities, delegated managers, with the assistance of their human resources specialist, must first determine the parts of an organization for which a SERLO may be required.

Example 1: Affected part of the organization

There are 20 positions in a work unit, in one geographic location, whose duties are identical, and the positions are classified at the same group and level.

The latest business and HR plans indicate that the existing work has not changed, but only 12 positions are now required due to a lack of work. A workforce scan confirms that no one else in the organization performs similar work.

Based on this information, the delegated manager determines that the affected part of the organization is the work unit in this one location where the 20 positions are located.

Example 2: Affected part of the organization

There are 20 IT-01 positions within the Information Technology directorate of a small organization. While the existing work of the directorate has not changed, the quantity of work has declined and only 16 positions are now required.

The positions are equally distributed between the Software Development work unit and the Client Services work unit.

However, the reduction of work is not distributed evenly in the 2 work streams, which will result in 3 reductions in the Software Development work unit and one reduction in the Client Services work unit. As the work performed in each work stream is different, the delegated manager determines that there are 2 affected parts of the organization: the Software Development work unit and the Client Services work unit.

Step 3: Identify the positions and affected employees

In accordance with subsections 22(1) and 22(2) of the PSER, delegated managers, with the assistance of their human resources specialist, now identify the positions and indeterminate employees of the same occupational group and level who are either employed in similar positions or performing similar duties.

Positions of the same occupational group and level may have generic job descriptions. This alone does not necessarily require them to be grouped together for the purposes of a SERLO. Delegated managers must consider objectively how the positions or the duties are similar within each affected part of the organization.

After identifying the positions within the affected part(s) of the organization, delegated managers must identify the indeterminate employees who occupy those positions.

The following individuals would not be included in a SERLO pursuant to subsection 64(2) of the PSEA:

Example 1: Affected positions and employees

In one affected part of the organization, 20 identical positions have been identified for reduction and there are employees occupying each position.

Of the 20 positions, 17 are occupied by indeterminate employees on a substantive basis, one is occupied by an employee from outside the organization who has been seconded to the position to replace an indeterminate employee on a leave of absence, one is occupied by an employee who is appointed for a specified term, and one is occupied by an indeterminate employee from within the organization on an acting basis.

Consequently, the 18 indeterminate employees who occupy the positions on a substantive basis, which includes the employee on a leave of absence, are identified as affected by the delegated manager in accordance with the WFAD or the WFA appendix of the relevant collective agreement.

Example 2: Affected positions and employees

The delegated manager identified 2 affected parts of the organization, the Software Development work unit and the Client Services work unit.

All 20 positions are occupied by indeterminate employees; however, one employee in the Software Development work unit previously submitted a notice of retirement, which has been accepted, and will take effect in 6 months. The employee will not be identified as affected, since their position will be abolished once vacant.

Because the work performed in each work unit is different, the delegated manager identifies 2 separate groups of employees as affected: 9 employees in the Software Development work unit and 10 employees in the Client Services work unit.

For additional information and support related to this step, please refer to the following directives:

Step 4: Notification to the Treasury Board of Canada Secretariat – Office of the Chief Human Resources Officer, bargaining agents, and employees

As determined by the WFAD or the WFA appendix of the relevant collective agreement, organizations are required to advise and consult as thoroughly as possible with the bargaining agent representatives regarding any workforce adjustment situation. This consultation must take place as soon as possible after the decision has been made and continue throughout the process, and it must include the names and work locations of affected employees.

Organizations must notify TBS-OCHRO, in writing and in confidence, at the earliest possible date and under no circumstances less than 4 working days before any workforce adjustment situation is announced which is likely to involve a certain number of employees, as determined by the WFAD or the WFA appendix of the relevant collective agreement.

Notifications are generally coordinated and delivered at the organizational level unless the workforce adjustment involves very few affected employees in which case delegated managers must consult with their human resources specialist.

Organizations must also notify the National Head of each bargaining agent that has members involved, in writing and in confidence, providing notice in advance of notifying any potentially affected employee, as determined by the WFAD or the WFA appendix of the relevant collective agreement.

Once TBS-OCHRO and the bargaining agents have been notified, organizations will notify affected employees in writing. Similarly, notification to employees will be coordinated at the organizational level. Involvement in the notification process could vary depending on the delegation of human resources authorities instrument within each organization. Delegated managers and human resources specialists will be advised of their specific roles and responsibilities related to these activities.

For executives, organizations must notify and maintain continued communication with the TBS-OCHRO’s Leadership Policies Division, prior to and throughout career transition activities. Deputy heads must notify potentially affected executives, in writing, pursuant to the Directive on Terms and Conditions of Employment for Executives.

For additional information and support related to this step, please refer to the following:

Step 5: Conduct classification and staffing activities

When determining the current and future state of the organization in Step 1, delegated managers considered current and future programs, services and priorities and how these might in turn lead to potential gaps in skills and in human resources. Workforce adjustment or career transition may require the elimination of existing positions, changes to existing positions, the creation of new positions or a mix thereof.

Prior to and during a workforce adjustment or career transition, consultation with Classification is required to ensure that work descriptions are up to date, positions are properly classified, new positions are created, if applicable, and vacant positions are abolished. Position locations must also be accurate and updated, if required.

In cases where a new position is created, delegated managers must work with their human resources specialist to determine the most appropriate staffing strategies in an effort to reduce or minimize the number of employees affected by the workforce adjustment or career transition. In these situations, delegated managers should consider filling the new positions first. This provides an opportunity for some of the affected employees to be placed, thus reducing their number. Delegated managers and human resources specialists should consider their organizational direction on classification and staffing activities.

Example: Classification and staffing activities

To meet the needs of the future program and associated services, the delegated manager has determined that 2 supervisor positions will be required. Consultation with Classification has confirmed that no positions currently exist within the work unit. As such, they proceed with the classification and creation of 2 new positions.

The delegated manager knows that some employees within the work unit have the qualifications and skills required for the supervisor positions.

In order to minimize the number of employees potentially included in a SERLO, the delegated manager intends to fill the 2 positions using an advertised internal appointment process, open only to employees who occupy substantive positions in the affected work unit, or the minimum area of selection in accordance with the organization’s policy on area of selection for internal appointment processes. Prior to proceeding with the appointment process, the delegated manager communicates with the employee on a leave of absence to discuss their intentions.

In planning the appointment process, the delegated manager establishes and applies essential qualifications and other criteria, including “placement of affected employees” as an organizational need. The delegated manager invokes section 43 of the PSEA when requesting priority clearance to appoint an affected employee, as the appointment of a person with a priority entitlement from outside the unit would result in the need to declare an employee surplus. Following the assessment of applicants, the delegated manager appoints 2 employees from the affected work unit to the supervisor positions.

From the 18 indeterminate employees who were initially identified as affected, 16 affected employees remain.

Step 6: Establish a voluntary departure program

As determined by the WFAD or the WFA appendix of the relevant collective agreement, organizations may be required to establish voluntary departure programs for workforce adjustment situations that involve a certain number of employees, working at the same group and level in the same work unit, and when the deputy head cannot provide a guarantee of a reasonable job offer. Note that, even in cases where a voluntary departure program is not required, organizations may decide to establish an organization-wide program to consider requests throughout the workforce adjustment period.

Consultation through joint union-management WFA committees is required when a voluntary departure program is established pursuant to the WFAD and the WFA appendix of the relevant collective agreement. WFA committees are generally coordinated and established at the organizational level.

The objective of a voluntary departure program is to allow employees to volunteer to be laid off, thereby reducing the number of employees to be included in a SERLO and, in some cases, eliminating the need to conduct one.

Such programs must be put in place after employees have been notified of their affected status and before a SERLO. The voluntary departure program must not lead to more reductions than planned. Before establishing the voluntary departure program, organizations will identify the number of positions to be eliminated. If the number of volunteers is greater than the number of positions to be eliminated, volunteers must be selected based on seniority (total years of service in the public service, whether continuous or discontinuous), when the voluntary departure program is in accordance with the WFAD or the WFA appendix of the relevant collective agreement.

The appendices of the Directive on Terms and Conditions of Employment for Executives do not include provisions for a voluntary departure program.

Example: Voluntary departure program

It has been determined that there are now 16 affected employees who remain.

Earlier in the week, an employee provided the delegated manager with a copy of an accepted letter of offer to deploy to another organization, resulting in 15 affected employees.

As more than 5 employees are at the same group and level, and work in the same work unit, as per the WFAD the delegated manager must establish a voluntary departure program. This program is established after meaningful consultation with the joint WFA Committee. Employees are given a minimum of 30 calendar days to consider and volunteer for lay-off by selecting one of the following options: B (Transition Support Measure), C(i) (Transition Support Measure, Education Allowance and Resignation) or C(ii) (Transition Support Measure, Education Allowance and up to 2 years of Leave Without Pay prior to Resignation).

Prior to the minimum 30-calendar day deadline established by the WFAD, an employee volunteers to be laid off. However, the delegated manager must wait until the 30 days are up so that all employees have an opportunity to submit their requests. If the number of volunteers is greater than the required number of positions to be eliminated, the delegated manager will select volunteers based on seniority.

At the end of the 30 calendar days, only one employee has volunteered to be laid off. There are 14 remaining employees, of which 12 will be retained and 2 will be selected for lay-off.

The delegated manager communicates with the remaining employees to explain that one employee has accepted a deployment outside of the work unit and that one employee has volunteered to be laid off. They explain that a SERLO is now required and the opportunity to volunteer to be laid off may remain available to affected employees if the number of positions to be eliminated has not been achieved.

For additional information and support related to this step, please refer to the following:

Conducting a selection of employees for retention or lay-off

Step 7: Determine the qualifications, requirements, and needs

The objective of a selection of employees for retention or lay-off (SERLO) is to identify which employees will be retained and which will be selected for lay-off. Delegated managers, with the assistance of their human resources specialist, must establish pursuant to subsection 22(2) of the PSER :

A SERLO is not an appointment process; therefore, the qualifications, requirements, and needs established can differ from the merit criteria that would have been established for an appointment process.

Essential qualifications

To be selected for retention, employees must meet each essential qualification determined by delegated managers to be the most relevant for the work to be performed.

Official language proficiency must be established as an essential qualification; it cannot be established as an asset qualification. Pursuant to section 91 of the Official Languages Act, official language requirements must be set objectively for the functions to be performed. A SERLO can include positions with various official language proficiencies. Delegated managers must determine whether the linguistic requirements continue to meet the needs of the position(s) prior to conducting a SERLO.

As a SERLO is not an appointment process, non-imperative staffing, as provided for in the Directive on Official Languages for People Management, does not apply.

Organizational need for employment equity, diversity, and inclusion

Employment equity is linked to obligations under the Employment Equity Act for the 4 designated groups:

When a gap in the representation of members of one or more of the employment equity designated groups has been identified, delegated managers can include belonging to one or more of the employment equity groups as a relevant current or future organizational need for a SERLO.

Diversity and inclusion have a broader scope that includes supporting and making improvements for a diverse, inclusive, and culturally competent workplace. Diversity may be used to address documented underrepresentation in other groups or within subgroups of the 4 designated groups (for example, persons with an intellectual disability or members of the Black community).

Organizations may have set their own diversity and inclusion goals taking into consideration the degree of underrepresentation and availability of qualified people in the workforce (as supported by relevant data).

Example: Determine the qualifications, requirements, and needs

The delegated manager's review of the work to be performed indicates that while the work remains the same, the work unit will be required to produce more written documents that must be clear, concise and accurate.

For the SERLO, the delegated manager establishes the following as essential qualifications that are most relevant for the work to be performed:

  • Official language proficiency – bilingual imperative CBC/CBC
  • Ability to interpret the act and regulations for which the team is responsible
  • Written communication skills
  • Interpersonal skills
  • Initiative

For additional information and support related to this step, please refer to the following:

Step 8: Determine the assessment methods

As provided for in subsection 22(4) of the PSER, delegated managers may use any assessment method that they consider appropriate to assess the employees. Subsection 22(6) of the PSER requires that any assessment of an employee’s proficiency in their second official language must be conducted using the same methods as those for appointments to or from within the public service.

The decision about which assessment tools to use should be based primarily on how effectively the tools assess the qualifications, requirements, and needs identified for the position within the specific context of the SERLO.

Consider creating an assessment plan (or rating guide) that establishes a clear link between each qualification, requirement, and need and the assessment tools that are chosen or developed.

Example: Assessment methods and the manner in which they will be used

There are now 14 affected employees who remain.

The delegated manager has determined the following assessment methods:

  • Official language proficiency - bilingual imperative CBC/CBC

The delegated manager will check with the human resources specialist to confirm whether the employee's most recent Second Language Evaluation (SLE) test results demonstrate that they meet the official language proficiency requirements. For those who don’t meet the requirements, the delegated manager will use the methods approved by the Public Service Commission to evaluate them.

  • Ability to interpret the act and regulations for which the team is responsible

The delegated manager will use previous assessment results for employees who joined the team from the appointment process earlier in the year, or the delegated manager will review samples of previous work of the employees who have been with the team for several years.

  • Written communication skills

The delegated manager will review samples of previous work.

  • Interpersonal skills
  • Initiative

The delegated manager will conduct a structured reference check and will supplement with observed behaviours, as required.

For additional information and support related to this step, please refer to the following:

Step 9: Identification of biases and barriers

In accordance with subsection 22(5) of the PSER, before using their selected assessment methods, delegated managers are required to evaluate them and the manner in which they will be applied. An evaluation serves to identify and remove biases or barriers that disadvantage persons belonging to any equity-seeking group, or to mitigate their impact on those persons.

Conducting an evaluation generally consists of 3 main activities:

  1. describing the assessment method and its application;
  2. evaluating the assessment method and its application to identify potential biases and barriers; and
  3. taking action to remove biases and barriers, or to mitigate their impact.

The Public Service Commission’s Guide and Tool for Mitigating Biases and Barriers in Assessment (accessible only on the Government of Canada network) can be used to evaluate the assessment methods, and how they will be applied. Some organizations have developed their own evaluation tools on biases and barriers in assessment; these may be appropriate for a SERLO as well.

For additional information and support related to this step, please refer to the following (accessible only on the Government of Canada network):

Step 10: Inform employees

Pursuant to subsection 22(3) of the PSER, delegated managers must inform each group of employees participating in the SERLO, in writing, of the qualifications, requirements, and needs; the assessment methods that were chosen; and the fact that employees can request accommodation measures and the process for doing so.

Note: The deputy head must inform each executive participating in the SERLO, in writing, of the elements identified above.

To further increase transparency, delegated managers may also communicate additional information such as the qualification definitions, the factors that will be used to select the employees to be retained, the overall process and timing of the assessments, and the support and services available to employees who are affected by WFA.

Communication should be timely and provide as much concrete information as is available.

Step 11: Assessment of employees

The objective of the assessment process is to determine which employees meet the most relevant essential qualifications, any asset qualifications, requirements, and needs to perform the continuing functions of their positions. Delegated managers must ensure that the employees selected for retention meet the rating or pass marks established for each one. Delegated managers may first apply and assess an asset qualification, an operational requirement, or an organizational need before assessing the essential qualifications if it is more efficient to do so.

Pursuant to subsection 22(7) of the PSER, delegated managers must ensure that employees are assessed in the official language of their choice – English, French, or both – when assessing qualifications, requirements, and needs. When assessing the employee’s knowledge and use of English, French, or both, or a third language, the assessment must be conducted in the language being assessed. For example, a position posted abroad may require the ability to read, write and speak a third language. The assessment of this third language must be completed in that language.

The employee’s Second Language Evaluation (SLE) results are deemed to be valid for an indefinite period while the employee remains in their substantive position and as long as the linguistic profile of the position has not been raised above the employee’s skill level.  Delegated managers may also reassess an employee at any time should there be concerns about an employee’s proficiency level or to respect organizational policies on updating expired test results.

If the employee’s most recent SLE test results demonstrate that they no longer meet the official language proficiency requirements of their substantive position, then the employee must undertake another SLE test to demonstrate that they meet those requirements.

Exception: If an employee was appointed or deployed on a non-imperative basis to their substantive position, subject to the Public Service Official Languages Approval Order (PSOLEAO), and an exclusion is in effect at the time of a SERLO decision, they are excluded from meeting the official language proficiency. This continues to apply even if the profile of the position is changed in a SERLO; an existing exclusion under the PSOLEAO is to be respected. This exclusion may be based on a signed Agreement to Become Bilingual, a medical exclusion, or a resignation (if eligible for an immediate annuity within 2 years after the appointment.) 

There are no other exclusions from meeting the official language proficiency in a SERLO; “incumbent’s rights” that allow an employee who does not meet the required official language profile to remain in their position in certain circumstances do not apply.

Assessment accommodations are designed to remove barriers and to ensure that employees with limitations can fully demonstrate their abilities. The principles of duty to accommodate apply to the SERLO.

For additional information and support related to this step, please refer to the following:

Step 12: Selection of employees

Selection is a crucial step in the decision-making process. Pursuant to subsection 22(8) of the PSER, delegated managers must consider how the qualifications, requirements, and needs will factor into their selection for retention. They could look for strength in a combination of elements, and the combination could vary from one position to another, if required. 

At a minimum, all retained employees must meet the essential qualifications, including the official language proficiency established for the SERLO. If the employee does not meet the required proficiency, they cannot be selected for retention, regardless of their results on the other factors, unless they benefit from an exclusion under the PSOLEAO. Delegated managers cannot determine that an official language proficiency higher than that required by the position will lead to an employee being retained.

Selection factors may be the same for all of the positions to be retained, or they may differ. Delegated managers will be required to provide to each employee, in writing, the reasons they have been selected for lay-off.

Example: Selection

When determining the qualifications, requirements, and needs, the delegated manager considers the existing and future work to be performed, and decides to use the following selection factors:

  • Written communication
  • Ability to interpret the act and regulations for which the team is responsible

Accordingly, the delegated manager selects for retention, from those employees who met all of the most essential qualifications, 12 employees who demonstrated the strongest written communication combined with the ability to interpret the act and regulations.

The remaining 2 employees are selected for lay-off.

Step 13: Provide written notice

Once the determination as to which employees are to be selected for retention and which are to be selected for lay-off has been made, delegated managers must inform employees as soon as possible, in writing. To ensure transparency and fairness of the process, it is recommended that all employees who were assessed be informed of the selection results at the same time.

Employees selected for lay-off

Pursuant to subsection 21(1) of the PSER, prior to laying off an employee under subsection 64(2) of the PSEA, delegated managers must provide the employee with the following, in writing:

As required by section 1.1.7 of the WFAD or the WFA appendix of the relevant collective agreement, when an employee is advised that they are to be laid off as their services are no longer required due to lack of work or discontinuance of a function, communication must also indicate whether:

With the exception of executives, organizations are expected to provide a guarantee of a reasonable job offer to the employees for whom they know that there is, or can predict that there will be, employment available in the core public administration.

Note: For executives, organizations must consult with TBS-OCHRO’s Leadership Policies Division prior to providing written notice.

Employees to be retained

As required by subsection 21(2) of the PSER, delegated managers must also notify, in writing, the employees not selected for lay-off that they are to be retained.

Delegated managers should be prepared to discuss and explain the assessment results with each employee. Information provided to an employee must relate only to that employee, as the Privacy Act protects personal information.

Step 14: Record the reasons for the selection

Pursuant to subsection 22(10) of the PSER, organizations are required to document the reasons for selecting or not selecting each employee for lay-off. Documentation ensures transparency and reinforces the delegated managers’ accountability for decisions.

Organizations must be able to demonstrate that the requirements of the PSER have been met. Documentation of the decisions made prior to and during a SERLO will be useful during discussions with employees and may be required for the Public Service Commission’s oversight activities or for grievances and complaints to the Federal Public Sector Labour Relations and Employment Board (FPSLREB).

Responsibilities after a selection of employees for retention or lay-off

Certain tasks will remain once a selection of employees for retention or lay-off (SERLO) has been completed. The following are some examples, in no specific order.

Workforce adjustment or career transition activities

Prior to and during a SERLO, employees may have been provided with an opportunity to volunteer for lay-off. Within the voluntary departure program, employees were provided with a number of days to consider and volunteer for lay-off by selecting one of the options in accordance with the WFAD or the WFA appendix of the relevant collective agreement.

Alternately, employees selected for lay-off were informed, in writing, that their services were no longer required and advised that they either had a guarantee of a reasonable job offer, or had no guarantee of a reasonable job offer and had 120 days to consider and select from options A, B, C(i) or C(ii) in accordance with the WFAD or the WFA appendix of the relevant collective agreement.

Delegated managers must support and work through the option selected by each employee. This includes completing and forwarding the required documentation to enable the provisions of each option.

When conducting career transition activities for executives, organizations must contact TBS-OCHRO’s Leadership Policies Division.

Classification activities

When conducting the various steps prior to or during a SERLO, delegated managers may have determined that one or more positions require an update. The desired current or future state of the organization may bring forward changes in the work to be performed, necessitating an update to job descriptions.

While determining the most relevant essential qualifications, delegated managers considered whether the linguistic requirements continued to meet the needs of each position to be retained. If the requirements have changed, delegated managers are required to update the linguistic profile of the position.

Pursuant to subsection 64(4) of the PSEA, once a lay-off takes effect, the employee ceases to be an employee and no longer occupies their substantive position. At that point in time, delegated managers should work with Classification to abolish vacant positions.

Recourse

In situations where some but not all employees are informed that they will be laid off, employees, including executives, who have been selected for lay-off have a right to make a complaint pursuant to subsection 65(1) of the PSEA on the grounds that their selection constituted an abuse of authority. Subsection 65(2) of the PSEA stipulates that no complaint may be made against the decision to lay off employees, the determination of the part of the organization from which employees will be laid off, or the number of employees to be laid off from that part.

Deputy Heads are informed when complaints are made to the FPSLREB. Human Resources will advise delegated managers that conducted the selection for lay-off of the complaint. The human resources specialist will work in close collaboration with delegated managers to ensure that they have all relevant information and that procedural timelines are met.

For additional information and support related to this step, please refer to the following:

Frequently asked questions

The following questions are under development. This information is evergreen and may be updated from time to time.

Prior to conducting a selection of employees for retention or lay-off (SERLO)

Is notification of a workforce adjustment situation required for excluded and unrepresented employees?

Organizations must notify the Treasury Board of Canada Secretariat - Office of the Chief Human Resources Officer (TBS-OCHRO), in writing and in confidence, at the earliest possible date, and within the time specified in Work Force Adjustment Directive, the workforce adjustment appendices of the relevant collective agreements, and the Directive on Terms and Conditions of Employment for Executives, before any workforce adjustment situation or career transition is announced.

Is it possible to deploy (as opposed to appoint) an affected employee to newly classified and created positions?

Yes, it is possible to deploy affected employees. Pursuant to paragraph 51(5)(a) of the PSEA, the deployment may not constitute a promotion. The employee being deployed must meet the qualification standard, linguistic profile and conditions of employment of the position.

How are seasonal employees in an affected position treated in a SERLO?

Seasonal employees who occupy a position on an indeterminate basis must be included when identifying the positions and employees of the same occupational group and level who are either employed in similar positions or performing similar duties in the affected part(s) of the organization that may require a SERLO.

How are part-time employees in an affected position treated in a SERLO?

Part-time employees who occupy a position on an indeterminate basis must be included when identifying the positions and employees of the same occupational group and level who are either employed in similar positions or performing similar duties in the affected part(s) of the organization that may require a SERLO.

How are employees, who benefit from salary protection, treated in a SERLO?

Employees who benefit from salary protection and who occupy a position on an indeterminate basis must be included when identifying the positions and employees of the same occupational group and level who are either employed in similar positions or performing similar duties in the affected part(s) of the organization that may require a SERLO. Salary protection at a different group and level has no impact on being included in the SERLO; employees are considered based on the position they occupy on a substantive basis.

An employee who is appointed for a specified term in the affected part of the organization is approaching 3 years of service. Should this employee be included in a SERLO?

Section 59(1) of the PSEA provides that conversion to indeterminate status is automatic if the conditions prescribed by the employer are met. If the employee who is appointed for a specified term has reached the end of the cumulative period specified by the employer, the employee is converted to indeterminate status and is included in the selection of employees for retention or lay-off.

If the employee who is appointed for a specified term has not yet reached the end of the cumulative period specified by the employer, then they should be treated in accordance with the policies of the employer. Delegated managers and human resources specialists must review the organization’s management of specified term employment to determine whether cumulative work periods count towards the conversion from term to indeterminate status pursuant to subsection 4.2.3 of the Directive on Term Employment. When the employee who is appointed for a specified term maintains their status as a specified term employee beyond 3 years of service pursuant to subsection 4.2.3 of the directive, they are not included in the SERLO.

Assessment

Can previous assessment results be used in the context of a SERLO?

In certain cases, assessment results from a previous selection process can be used in the SERLO.

Before making a decision to use previous assessment results, delegated managers should consider the following factors:

  • the quality of the assessment tools used,
  • the continued relevance of assessment tools over time,
  • whether the previous qualification(s) and the qualification(s) of the SERLO are the same or similar in terms of depth and breadth,
  • whether employees have had opportunities to enhance their qualifications since the previous assessment, and
  • the degree to which the previous results from another organizational context are relevant to the SERLO context.

There may be other considerations specific to each organization.

Delegated managers must also determine whether an evaluation of the assessment methods, and the manner in which they were applied, was conducted to identify biases and barriers that disadvantage persons belonging to any equity-seeking group, pursuant to subsection 22(5) of the PSER. Delegated managers conducting the SERLO are accountable for ensuring that an evaluation has taken place, even when using an assessment method and evaluation conducted by another person, organization, or third-party service provider other than the Public Service Commission.

Can employees on leave be assessed in a SERLO?

In many circumstances, an employee who is on a leave of absence can be included in a SERLO. If an employee cannot participate in the assessment process because of an absence related to grounds under the Canadian Human Rights Act, delegated managers must work with their human resources specialist to determine, on a case-by-case basis, whether or not the employee on leave can be included in the SERLO.

Can an employee refuse to participate in a SERLO?

If an employee does not want to participate in the SERLO, that does not result in their withdrawal from the process. Unlike in an appointment process, in a SERLO the onus is on delegated managers to exhaust all possibilities to assess employees. Delegated managers must work with their human resources specialist to determine, on a case-by-case basis, whether the assessment can continue, and if so, to consider the various assessment options.

Selection

Can seniority be used in a SERLO?

No. A SERLO must be based on the most relevant essential qualifications, any asset qualifications, requirements, or needs for the work to be performed, or for the organization, currently or in the future.

Although experience can be used as a qualification and a factor in the selection of employees for retention, the depth and breadth of experience is not always proportionally correlated with years of experience.

For more information

Delegated managers can contact their human resources specialist to discuss how specific issues are handled in their organization.

The Public Service Commission of Canada provides support through staffing support advisors assigned to each organization.

Legislation and references

Legislation

Other references

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