Search Google Appliance

Menu Search

Severance Pay

Lay-Off

If you are laid off after one year or more of continuous employment, you are entitled to severance pay. You have the following options:

  • Separation Assistance - you shall receive severance pay of two weeks’ pay per year for the first ten complete years of continuous employment and three weeks’ pay for each succeeding complete year of continuous employment. The total amount of severance pay, which may be paid under this sub-clause, shall not exceed 65 weeks of pay.
  • Severance Priority - you shall receive severance pay for two weeks pay for the first complete year of continuous employment, two weeks pay for the second complete year of continuous employment and one week of pay for each succeeding complete year of continuous employment. The total amount of severance pay, which may be paid under this sub-clause, shall not exceed 28 weeks of pay. You shall be provided priority staffing for eighteen months from the last day of the lay-off notice period.
  • Retraining - you shall, during the three month notice period, be eligible for this option if:
    • -you have three years of continuous employment;
    • -there is a specific vacant position or anticipated vacancy for which no other lay-off qualifies and you may become qualified with retraining; and
    • -you and the Employer agree that the retraining can be completed within 12 consecutive months.
  • Education Assistance - you may be eligible for this option if:
    • -you have three years of continuous employment;
    • -the proposed program of study relates to positions within the Government; and
    • -you provide proof of acceptance in an educational program.

Education assistance is calculated at 80% of your current salary for a period of up to 12 months.

If you are laid off for a second or subsequent time, severance pay will be calculated on complete years of continuous employment, less any period for which you have been previously granted severance pay.

Medical Termination

If you are terminated as a result of a recommendation made to the Employer that you are incapable of performing your duties because of chronically poor health; and when such occurs:

(a) you shall be paid severance pay equal to the product obtained by multiplying your weekly rate of pay on termination of employment by the number of completed years of your continuous employment to a maximum of thirty (30), less any period of continuous employment in respect of which severance pay was previously granted.
(b) when employment is terminated under this Clause, you shall have the right to waive your entitlement to severance pay and, in lieu thereof, be granted an equivalent period of leave with pay.

Resignation

You are entitled to severance pay upon resignation if:

  • you have ten or more years continuous employment;
  • you give two months notice of termination (or any shorter period that the Employer may agree); and
  • if the termination is for reasons other than lay-off, abandonment of position, rejection on probation or dismissal.

This severance pay is calculated as follows:


[Weekly rate of pay on termination] x
[(completed years of continuous employment) -
(previous years for which severance was paid) to a maximum of 26]
divided by 2

Retirement

Retirement, for severance pay purposes, means termination from the Public Service with an entitlement to an immediate unreduced annuity under the Superannuation Plan. You may take an equivalent period of leave with pay instead of severance pay.

Employees on strength as at December 31, 1994:

You are entitled to severance pay if:

  • you retire; or
  • your employment is terminated because chronically poor health makes performance of your duties impossible.

This severance pay is calculated as follows:

[Weekly rate of pay on termination] x
[(years of service) - (previous years for which severance was paid)]
to a maximum of 30 weeks

Employees taken on strength on or after January 1, 1995:

You are entitled to severance pay upon retirement if:

  • you have ten or more years continuous employment;
  • you give two months notice of termination; and
  • if the termination is for reasons other than lay-off, abandonment of position, rejection on probation or dismissal.

This severance pay is calculated as follows:


[Weekly rate of pay on termination] x
[(completed years of continuous employment) -
(previous years for which severance was paid) to a maximum of 26]
divided by 2

Death

Employees on strength as at December 31, 1994:

In the event of death, your estate is entitled to severance pay.

This severance pay is calculated as follows:

(Weekly rate of pay at death) x
(years of continuous service to a maximum of 30)

This is in addition to any other benefits.

Employees taken on strength on or after January 1, 1995:

In the event of death, your estate is entitled to severance pay if you have ten years or more of continuous employment.

This severance pay is calculated as follows:

[Weekly rate of pay on termination] x
[(completed years of continuous employment) -
(previous years for which severance was paid) to a maximum of 26]
divided by 2

Dismissal, Abandonment of Position

No severance pay is paid if you are dismissed for cause or if you abandon your position.