Notice on Compensatory Leave Cash-Out Date

In order to prioritize the workload of the compensation community and to allow Phoenix pay-related matters to be addressed first, the Treasury Board has recently issued an information bulletin to departments providing direction regarding automatic compensatory cash-out.

The overtime articles in our five Treasury Board collective agreements (PA, TC, EB, SV and FB groups) provide employees with the option for overtime to be paid by compensatory leave rather than pay in a fiscal year.

In most cases, compensatory leave not used by the end of a twelve (12) month period, as determined by the Employer, is subject to an automatic cash out provision. For example, the current PA collective agreement reads:

28.08 (d)

Compensatory leave with pay not used by the end of a twelve (12) month period, to be determined by the Employer, will be paid for in cash at the employee’s hourly rate of pay, as calculated from the classification prescribed in the certificate of appointment of his or her substantive position at the end of the twelve (12) month period.

Where such an automatic cash out provisions exists in the collective agreement, Treasury Board has directed department to suspend the automatic cash out, for all hours earned during the 2016/2017 fiscal year, unless the cash out is specifically requested by the employee.

PSAC is aware that many members value time off over money and when consulted by Treasury Board we provided our concurrence with the change in policy. We believe this is a prudent decision, allowing members to use compensatory time over a longer period of time while alleviating some of the pressure around Phoenix pay related matters.

The next cash out date of excess hours will follow the provisions stipulated in the relevant collective agreement.

It is important to note that PSAC have made significant gain in this round of bargaining on this specific issue at the PA and TC tables. Under the new agreement (if ratified by the membership), members will now have until September 30 of the following fiscal year to use the leave, therefore providing clarity and consistent application across all departments and allowing members to use compensatory time during the summer months.

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March 31, 2017
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