Market Adjustments may be approved to address recruitment and retention challenges for officially classified positions that meet the criteria for a market-based adjustment as established by Treasury Board, subject to the approval process as outlined in the Guidelines to Determine, Implement and Evaluate Market Adjustments (Guidelines ).
This policy applies to employees of Government departments, agencies, boards and commissions. For employees who are members of a bargaining unit please refer to the relevant section of the collective agreement since the policy may be limited in its application. This policy shall not apply to Executive positions within Government departments, agencies, boards, and commissions.
Officially classified positions eligible for the adjustment may be permanent, temporary, part-time, or seasonal and include bargaining unit and management employees.
|Market-Based Adjustment||Any form of additional remuneration, as approved by the Employer, paid to employees of Government departments, agencies, boards and commissions to address recruitment and retention challenges.|
|Employee||A person employed by a department, agency, board or commission for the purpose of performing certain specified work.|
|Employer||The Employer shall be the Treasury Board Committee of Cabinet.|
|Executive position||A position that:
|Officially classified position||A position that has been assigned a classification or pay level using an employer-approved job evaluation methodology and rating process.|
|Labour Market||The availability of labour within the private and/or public sector labour market. A labour market can be defined within a specific geographic area that contains comparator positions. The labour market for each position may vary.|
Departments, Agencies, Boards and Commissions
Departments, agencies, boards and commissions are prohibited from paying employees any other form of market adjustment outside the terms of this policy. Additional forms of remuneration, unrelated to market conditions, may be permitted, subject to Treasury Board approval.
Human Resource Secretariat (HRS)
The duration of any market adjustment shall be for one calendar year, unless otherwise determined by the Employer.
An employee will be entitled to receive a market adjustment in the form of a single non-pensionable payment. Payments will be made during the period of approval as authorized by the Employer. Payments for part-time arrangements shall be pro-rated accordingly.
If the payment is pre-paid (paid at the beginning of the period of approval), the employee will be required to sign a contract of service for that period of approval.
Payments shall not be made on a bi-weekly basis or otherwise incorporated into an employee's regular salary. The Employer may consider exceptions to the method of payment if circumstances warrant.
The Employer shall have final authority over any form of market adjustment and when the adjustment is to be paid.
Upon approval of a market adjustment, employees will be notified that the Employer retains the right to continue, modify or discontinue future market adjustments.
Market adjustments shall not be subject to general economic increases (GEI's) awarded by Government.
Once approved, the employing organization shall pay the adjustment at the earliest possible date.
If the current position has an approved market adjustment and the employee is moving to a:
(i) New position not subject to market adjustment
If an employee leaves his/her current position for another position in the same organization which does not qualify for a market adjustment, the amount to be paid shall be based on the employee's time spent in the position that qualifies for a market adjustment.
(ii) New position subject to market adjustment
If an employee leaves his/her current position for another position in the same organization which does qualify for a market adjustment, the amount paid shall be
1. The time employed in each position.
2. The amount of the approved market adjustment applicable to both positions.
If the method of payment for the approved market adjustment is pre-payment and the employee leaves the organization at any time during the period of approval, the employee will be required to reimburse any monies owing on a proportional basis.
If the method of payment for the approved market adjustment is post-payment and the employee leaves the organization at any time before the end of the period of approval, the employee will forfeit the entire approved market adjustment.
Unless otherwise approved by the Employer, all market adjustments are subject to periodic review by the relevant Deputy Minister or Chief Executive Officer to assess potential continuance as changes in market conditions may warrant the removal or modification of the market adjustment.
Proposals for market adjustments shall incorporate a review process, normally conducted on an annual basis. Deputy Ministers or Chief Executive Officers, upon the request of Treasury Board, are required to provide the results of their review, including the evidence for their decision to continue, modify, or discontinue a market adjustment.
Deputy Ministers and Chief Executive Officers are required to provide an annual report to the Deputy Minister of the HRS on the status of all market adjustments being paid by their respective organizations. The HRS will specify the information required in the report and audit and verify the information as required.
At any time, the President of Treasury Board may request that the department, agency, board or commission make a resubmission to determine continued eligibility for a market adjustment.
Last Policy Update: Feb 26, 2010