Part II, Chapter 3: Surplus Employees

Table of Contents

Table of Contents

3.1 Legal Basis

There are two types of priority entitlement for surplus employees:

  • in their home organization the priority person derives their entitlement from PSEA, section 40; and
  • in organizations other than their home organization, the entitlement is from PSER 5.

NOTE: It is very important that organizations are aware of which level of entitlement the surplus priority person has. In their home organization a surplus priority person has the highest level of entitlement possible, the statutory entitlement from PSEA section 40, which is to be appointed above ALL others. In an organization other then their home organization the same priority person would only be entitled to be appointed AFTER priority persons benefiting from statutory priority entitlements. This is because their entitlement in those organizations is regulatory, from PSER section 5.

The WFAAs and related agreements are the responsibility of the TBS. The role of the PSEA and PSER is simply to provide a priority "for the duration of the surplus period" to employees who become surplus under the provisions of the WFAAs and related agreements or the DCTE.

For details and up-to-date text and interpretations of these agreements and policies, please consult the TBS and the current WFAAs and related collective agreements.

Details on the provisions of the DCTE can be found in the work force adjustment section of the TBS web site.

These agreements are the responsibility of the Employer and all questions concerning their application and interpretation should be directed to the Employer.

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3.2 The Entitlement

As mentioned, there are two types of priority entitlement for surplus employees:

  • IN their home organization:

PSEA 40

Notwithstanding section 41, after a deputy head informs an employee that the employee will be laid off pursuant to subsection 64(1) and before the lay-off becomes effective, the Commission may appoint the employee in priority to all other persons to another position under the deputy head's jurisdiction if the Commission is satisfied that the employee meets the essential qualifications referred to in paragraph 30(2)(a) and that it is in the best interests of the public service to make the appointment

  • NOT IN their home organization:

PSER 5

(1) An employee who has been advised by the deputy head that their services are no longer required but before any lay-off becomes effective is entitled to appointment in priority to all persons, other than those referred to in section 40 and subsections 41(1) and (4) of the Act, to any position in the public service for which the Commission is satisfied that the employee meets the essential qualifications referred to in paragraph 30(2)(a) of the Act.

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3.3 Duration of Surplus Priority

PSER 5

(2) The entitlement period begins on the day on which an employee is declared surplus by the deputy head and ends on the earliest of

(a) the day on which the employee is appointed or deployed to a position in the public service for an indeterminate period,

(b) the day on which the employee refuses a reasonable job offer in the public service, and

(c) the day on which the employee is laid off.

NOTE: The start dates and durations of the various entitlements are set by the PSEA and/or PSER and cannot be altered. The PSC will only begin marketing the priority person once he or she is registered in the PIMS. Late registration will reduce the effective period of entitlement and may result in lost opportunities for the priority person.

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3.4 Refusal of a reasonable job offer

Where a surplus employee has a guarantee of a reasonable job offer, it is the employee's home organization that determines whether the employee has violated any of the conditions of that guarantee, including a determination of whether a given job offer constitutes a reasonable job offer within the meaning of the Workforce Adjustment Agreements and other related agreements. Refusal of a reasonable job offer in these circumstances could lead to a revocation of the guaranteed reasonable job offer by the home organization, and subsequent lay-off.

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3.5 Appointment to a Specified Term Position

If a surplus employee is appointed to a specified term position, the WFAAs and related agreements allow an organization to protect the employee's indeterminate status. Please consult the TBS and the current WFAAs and related collective agreements.

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3.6 Appointment to a Lower-Level Position (PSER and WFAAs)

A surplus employee appointed indeterminately to a lower-level position during the priority period becomes entitled to the reinstatement priority.

The surplus employee also becomes entitled to salary protection, as per the WFAD and related agreements, until appointed to the original or equivalent level, during and after the reinstatement priority period. Please consult the TBS and the current WFAAs and related collective agreements.

NOTE: The hiring organization must inform the PSC of the lower-level appointment by submitting a PIMS Referral Feedback Form or a PIMS Request for Priority Clearance to Appoint a Priority Person. The PSC will then change the employee's priority type to reinstatement.

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3.7 Retraining (WFAAs and related agreements)

A surplus priority person may be entitled to up to two years of retraining, pursuant to the WFAA's and related agreements. Please consult the TBS and the current WFAAs and related collective agreements.

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3.8 Separate Agencies

The following is a list of separate agencies. The WFAAs and related agreements do not apply to the employees of these agencies, because the TBS is not the Employer. However, these organizations are part of the "core" public service, as the PSC has the exclusive authority to make appointments for their employees, and therefore their employees are entitled to priority status.

If these separate agencies have a policy that provides a surplus period before lay-off, then the surplus priority will apply to their employees for the period specified in the agency's policies. Otherwise, their employees are entitled to the lay-off priority, as well as being entitled to the other priorities which apply to employees as defined by the PSEA.

The separate agencies subject to the PSEA are:

  1. Office of the Correctional Investigator of Canada
  2. Indian Oil and Gas Canada
  3. National Energy Board
  4. Public Service Labour Relations Board
  5. Office of the Superintendent of Financial Institutions
  6. Financial Consumer Agency of Canada
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3.9 Documents Required by the PSC to Support Registration

  • The PIMS electronic on-line Registration Form;
  • Letter declaring the employee surplus with a GRJO, showing a specified start date. No end date is required; or
  • Letter declaring the employee surplus with time limited surplus status.