Severance Termination

Date:

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

Subject: Severance Termination Leave without Pay, Appointments to and from Organisations Listed in Schedule V of the Financial Administration Act

The purpose of this bulletin is to provide departments with additional information on the impact the Payment in Lieu of Severance may have on Employment Insurance benefits (and the Quebec Parental Insurance plan benefits, where applicable) while on leave without pay, as well as on appointments to and from organisations listed in Schedule V of the Financial Administration Act (FAA) and the Core Public Administration (CPA).

Leave without Pay for reasons of Maternity/Parental, Illness, Relocation of Spouse and Compassionate Care

The Payment in Lieu of Severance may have a potential impact on Employment Insurance benefits (and the Quebec Parental Insurance plan benefits, where applicable) and as such, employees may choose to defer their option selection.

In such cases, the option selection will have to be made within three months of the end of the leave without pay period, the end of the Employment Insurance benefits (and the Quebec Parental Insurance plan benefits, where applicable), or the return to work, whichever comes first. If the deadline is not met, the employee will be deemed to have opted for the payment of the severance pay entitlement at termination of employment.

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 additional weeks of payment if they choose to defer their option selection.

Employees wishing to defer their option selection must provide their compensation advisor with proof that they are in receipt of Employment Insurance benefits (or the Quebec Parental Insurance plan benefits, where applicable) and confirm their return to work date. The option to defer must be confirmed with the compensation advisor within six months of the date of signing of either the relevant collective agreement or effective date of the instrument of authority.

Appointments to and from Organisations Listed in Schedule V of the Financial Administration Act

When an employee of an organization listed in Schedule V of the Financial Administration Act is appointed to a position in the Core Public Administration (CPA) or when an employee in the CPA is appointed to an organization listed in Schedule V of the Financial Administration Act (FAA), and there are no Payment in Lieu of Severance provisions in either the previous or new bargaining units, there is no change in the application of the severance pay provisions.

If an employee is appointed to or from a bargaining unit, either to the CPA from an organization listed in Schedule V of the FAA or from the CPA to an organization listed in Schedule V of the FAA, which has a Payment in Lieu of Severance provision, the employee will receive their payment upon joining or leaving the CPA, whichever the case may be.

A document with frequently asked questions and answers to that effect will be posted on the following TBS Website: Human Resources Information Notices (2011)

All questions should be directed to your Departmental Corporate Labour Relations or Corporate Compensation Official, who, if required, will direct their questions to the following email address: Contact Interpretations by E-mail Interpretations@tbs-sct.gc.ca.

Original signed by
Marc Thibodeau
Senior Director
Compensation Management
Core Public Administration
Compensation and Labour Relations
Office of the Chief Human Resources Officer

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