Information Bulletin - Direct Deposit - November 2012

Date: November 30, 2012

To: Heads of Human Resources, Directors/Chiefs of Labour Relations and Compensation

Through their e-Pay Services Initiative, Public Works and Government Services Canada (PWGSC) is moving towards a paperless payroll process and full direct deposit for all pay/salaries. The Treasury Board Secretariat (TBS) supports this initiative and is currently reviewing the Directive on Terms and Conditions of Employment.

The purpose of this bulletin is to provide clarification concerning the use of direct deposit for regular pay and supplementary payments for persons hired for a specified period of less than six months, casuals and students.

Specifically, Subsection 12.1, Part 3 of the Appendix to the Directive on Terms and Conditions of Employment stipulates that: "Direct deposit of all payments (regular pay cheques and supplementary payments) is mandatory for all newly appointed persons from outside the core public administration on an indeterminate basis or for a specified period where the term is greater than or extended beyond six months…."

The Treasury Board Secretariat's interpretation of the above statement is that it does not prevent persons with the delegated authority from implementing mandatory direct deposit for persons hired for a specified period less than six months, casuals and students. The mandatory direct deposit should be the only option of payment for all these employee types, including current and new employees.

In addition, the intent of Subsection 12.2, which is to pay persons by cheques when not feasible or practical, was to be a temporary measure only. With today's modern banking facilities, payment of these individuals by direct deposit should not be considered impracticable.

All questions from employees are to be directed to their appropriate corporate officials.

In accordance with the Interpretation Requests bulletin, only Corporate Departmental Labour Relations and Corporate Compensation Managers and Officers can send questions regarding this bulletin to the following email address: Contact Interpretations by E-mail Interpretations@tbs-sct.gc.ca.

Michael Holt
A/Senior Director
Core Public Administration
Compensation Management
Compensation and Labour Relations
Office of the Chief Human Resources Officer