Employees whose permanent positions are terminated, without cause, by the Employer will receive notification of termination of employment or pay in lieu of notice, as well as severance pay if eligible. Employees whose permanent positions are terminated will be eligible to apply for internal competitions for a period of 2 years following the date of notification of employment termination. Where positions to which permanent employees have been temporarily assigned are terminated or discontinued, employees will return to their permanent positions.

This policy applies to permanent management and non-management / non-bargaining employees.

It is the responsibility of Departments and Agencies to:

1. plan ahead for their staffing needs;

2. identify positions that are surplus to their needs and are to be terminated;

3. obtain Treasury Board approval to terminate the individual=s employment; and

4. notify employees in writing that their employment is to be terminated, the effective date of the termination, the period of notice for which they are eligible and the severance pay (if any) for which they are eligible.

Departments will give written notice of termination of employment to employees in accordance with the Notice Period Table. The number of weeks of notice commences as of the date of the letter which terminates employment. During the notice period, the employee will continue to access all employment benefits and accumulate pension credits while in receipt of salary. At the end of this notice period the employee may be eligible to receive:

1. severance pay; and

2. pay for unused paid leave, annual leave, travel time or overtime.

Departments may seek approval from Treasury Board to give employees whose employment is terminated pay in lieu of notice in accordance with the Notice Period Table.

If an employee, whose employment is terminated, receives pay in lieu of notice, the employee may choose to receive this payment either as a lump sum or as salary continuance.

Employees who choose to receive pay in lieu of notice as a lump sum also receive an amount representative of the value of the pension credit for that period of time, as per the Notice Period Table. In addition, employees who are given pay in lieu of notice may be eligible to receive:

1. severance pay; and

2. pay for unused paid leave, annual leave, travel time or overtime.

Employees who choose to receive pay in lieu of notice as salary continuance exit the workplace but receive the pay in lieu of notice in bi-weekly cheques during the period of notice. Employees on salary continuance continue to accumulate pension credits during their period of notice, but they do not accumulate sick, annual or paid leave credits. At the end of the notice period, during which employees are in receipt of salary continuance, employees may be eligible to receive:

1. severance pay; and

2. pay for unused paid leave, annual leave, travel time or overtime.

Employees whose employment is terminated under this policy will be eligible to apply, as internal candidates, for internal competitions within Government for a period of 2 years following the date of the notice to terminate employment.

Departments will recover the actual net dollar amount owed by the rehired employee for the period that overlaps with the period of re-employment.

The repayment period will not exceed the number of weeks for which the employee was originally given pay in lieu of notice. The interest rate to be charged on repayments will be that which is set, from time to time, by the Department of Finance.