Payment in Lieu of Severance Pay for Indeterminate Employees with less than One Year of Continuous Employment
To: Heads of Human Resources Directors / Chiefs Labour Relations and Compensation
The purpose of this bulletin is to provide departments with revised Treasury Board Secretariat (TBS) interpretation which relates to the Payment in Lieu of Severance for indeterminate employees having less than one year of continuous employment.
TBS was asked to review its current interpretation and determined that indeterminate employees with less than one year of continuous employment will be eligible for the Payment in Lieu of Severance.
On the effective date of the severance termination specified in the relevant collective agreement or instrument of authority, indeterminate employees with less than one year of continuous employment shall be entitled to a severance payment equal to one (1) week’s pay multiplied by the number of days of continuous employment divided by three hundred and sixty-five days (365).
Indeterminate employees with less than one year of continuous employment will have the same choice of options as outlined in their relevant collective agreement or instrument of authority; however, the selection of the option must be made within three (3) months from the date of this bulletin which means no later than November 22nd 2011.
The severance termination date, upon which continuous employment is calculated, will remain as specified in the relevant collective agreement or instrument of authority. Employees will not accrue any other severance benefits as a result of this bulletin.
The one year minimum of continuous employment still applies to term employees.
All questions should be directed to your Departmental Corporate Labour Relations or Corporate Compensation Official.
Original signed by
Core Public Administration
Compensation and Labour Relations
Office of the Chief Human Resources Officer
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