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Human Resource Manual

1109 - Indemnification

Contents

Introduction

  1. From time to time, employees may be subject to legal actions, proceedings or prosecutions arising out of acts performed or not performed by the employee at any time in the course of and within the scope of his or her employment and duties with the Government of the Northwest Territories (GNWT), or a public agency of the GNWT.

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Application

  1. This Policy applies to all employees and former employees except those that are employed by the NWT Power Corporation.

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Definitions

  1. Applicable Indemnification Contract refers to the indemnity contract under which current and former employees are or were working at the time against which a legal action, proceeding or prosecution is served or received:
    1. For former employees who were bargaining unit members prior to the date on which the Indemnity Agreement was signed, the Collective Agreement between the Government and the appropriate union;
    2. For employees who were bargaining unit members on or after the date on which the Indemnity Agreement was signed, the Indemnity Agreement;
    3. For former employees who occupied excluded and management positions prior to the date on which the Indemnity Agreement was signed, the Excluded Employees Handbook or Managers Handbook which was in effect; or
    4. For employees occupying excluded and management positions on or after the date on which the Indemnify Agreement was signed, the Indemnity Agreement.
  2. Indemnification means the Government will protect its employees from liability for damages or legal fees for certain legal actions, proceedings or prosecutions arising out of acts performed or not performed by the employee at any time in the course of and within the scope of his or her employment and duties with the GNWT, or a public agency of the GNWT.
  3. Indemnity Agreement means the Agreement to indemnify public service employees effective from the 16th day of December 2002.

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Guidelines

  1. The GNWT provides legal representation for employees subject to legal actions, proceedings or prosecutions under the following conditions:
    1. The alleged misconduct was committed in the performance of duties;
    2. The conduct was not a gross disregard or neglect of duties as an employee; and
    3. The employee has given immediate notice to the government of the action or proceeding.
  2. In the case of actions, proceedings or prosecutions covered under a policy of insurance maintained by the GNWT, the insurer under such policy retains the exclusive right, without consultation with the employee, to appoint legal counsel to act on behalf of the employee.
  3. Employees must co-operate fully with the appointed counsel.
  4. The Department, Board or Agency for whom the employee works or worked shall pay all legal fees, damages, or other monies payable in connection with the defense or settlement of any action, proceeding or prosecution in respect of which an employee is entitled to Indemnification.

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Procedures

  1. Employees must immediately notify their Deputy Head upon becoming aware of any act or omission that could result in a claim against the GNWT.
  2. Employees who are served with or receive notice of any action, proceeding or prosecution for which they are entitled to indemnification shall notify their Deputy Head or, in the case of a Deputy Head, the Secretary to Cabinet as soon as they are able.
  3. Upon receipt of notification from an employee, the Deputy Head or Secretary to Cabinet shall refer the matter to the Deputy Minister of Justice.
  4. Upon receipt of notification of legal action, proceeding or prosecution, the Deputy Minister of Justice or his or her designate shall confirm whether the employee is entitled to indemnification and, if so, shall take appropriate steps to appoint counsel.

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Authorities and References

AUTHORITIES AND REFERENCES

Financial Administration Act

Section 67.3

UNW Collective Agreement

Article 50, Indemnification

NWTTA Collective Agreement

Article B7, Indemnification

Excluded Employees’ Handbook

Indemnification

Senior Managers’ Handbook

Indemnification

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