The Workforce Adjustment Appendix (WFAA) is a section within PSAC Treasury Board and Agency collective agreements that outlines the rights, obligations, and processes for managing situations where employees' services are no longer required due to organizational changes, including government downsizing or cutbacks.

This glossary defines important terms and obligations found in the Workforce Adjustment Appendix. Some are found in each collective agreement; some are found elsewhere. 

For more information about your rights at work during a workforce adjustment situation, visit psacunion.ca/workforce-adjustment.

Accelerated lay-off: occurs when a surplus employee makes a request to the deputy head, in writing, to be laid-off at an earlier date than that originally scheduled, and the Deputy Head agrees. Lay-off entitlements begin on the actual date of lay-off.

Affected employee: an indeterminate employee who has been informed in writing that their services may no longer be required because of a workforce adjustment situation.

Alternation: occurs when an opting employee, or an employee who is surplus as a result of opting for a 12 month surplus priority period in which to secure a reasonable job offer as per 6.4.1(a), who wishes to remain in the core public Administration exchanges positions with a non-affected employee (the alternate) willing to leave the core public administration with a transition support measure or with an education allowance.

Alternate Delivery Initiative: the transfer of any work, undertaking or business of the core public administration to any body or corporation that is a separate agency or that is outside the core public administration.

Appointing department or organization: a department or organization which has agreed to appoint or consider for appointment (either immediately or after retraining) of a surplus or laid-off person.

Core public administration: that part of the public service in or under any department or organization, or other portion of the federal public administration specified in Schedules I and IV of the Financial Administration Act (FAA) for which the Public Service Commission has the sole authority to appoint.

Deputy Head: has the same meaning as in the definition of “deputy head” set out in section 2 of the Public Service Employment Act,and also means their official designate.

Education Allowance: one of the options provided to an indeterminate employee affected by workforce adjustment for whom the deputy head cannot guarantee a reasonable job offer. The education allowance is a cash payment equivalent to the transition support measure (see Annex B), plus a reimbursement of tuition from a recognized learning institution, as well as book and mandatory equipment costs, up to a maximum of seventeen thousand dollars ($17,000).

Essential Qualifications: qualifications that are necessary for the work to be performed and that must be met in order for a person to be appointed. Essential qualifications are still determined by the Employer but are differentiated from Asset qualifications which are qualifications, other than official language requirements, that are not essential to perform the work, but that would benefit the organization or enhance the work to be performed.

Guarantee of a Reasonable Job Offer: a guarantee of an offer of indeterminate employment within the core public administration provided by the deputy head to an indeterminate employee who is affected by workforce adjustment. Deputy heads will be expected to provide a guarantee of a reasonable job offer to those affected employees for whom they know or can predict that employment will be available in the core public administration. Surplus employees in receipt of this guarantee do not have access to the options available in Part VI of the WFAA.

Home department or organization: a department or organization declaring an individual employee surplus.

Joint Workforce Adjustment Committee: a joint committee that must be created at all necessary levels by departments and organizations with their union counterparts to discuss all aspects of the workforce adjustment process being undertaken, including alternation requests from other departments and organizations.

Laid-off person: a person who has been laid-off pursuant to subsection 64(1) of the Public Service Employment Act (PSEA) and who still retains an appointment priority under subsection 41(4) and section 64 of the PSEA.

Lay-off notice: a written notice of lay-off to be given to a surplus employee at least one month before the scheduled lay-off date. This period is included in the surplus period.

Lay-off priority: a person who has been laid-off is entitled to a priority, in accordance with subsection 41(5) of the Public Service Employment Act with respect to any position to which the Public Service Commission is satisfied that the person meets the essential qualifications of the position. The period of entitlement to this priority is one year as set out in Section 11 of the Public Service Employment Regulations. This priority period is unpaid.

Opting Employee: an indeterminate employee whose services will no longer be required because of a workforce adjustment situation, who has not received a guarantee of a reasonable job offer from the deputy head and who has 120 days to consider the options in section 6.4 of the WFAA.

Organization: any Board, Agency, Commission or other body, specified in Schedules I and IV of the Financial Administration Act (FAA) that is not a department.

Pay: has the same meaning as “rate of pay” in the Collective Agreement.

Priority System: the system defined by the Public Service Commission under the authority granted to the Commission by the Public Service Employment Act and Regulations that establishes the order of staffing for individuals who want to be employed or re-employed in the Core Public Service. Agencies will have their own priority systems modelled after that outlined by the Commission. Surplus and laid off employees are subject to priority staffing.

Priority Administrative Directive and Priority Information Management System (PIMS): the Priority Administration Directive is a device implemented by the Public Service Commission to ensure persons with a priority entitlement are considered by organizations. The Directive specifies the roles and responsibilities of the PSC, organizations and persons with a priority entitlement in the administration of priority entitlements; the measures organizations must take in order to ensure priority entitlements are respected; PSC oversight activities; and measures that may be taken by the PSC as a result of non-compliance with this Directive.

The PSC Priority Entitlements Program uses an automated system called the Priority Information Management System (PIMS) to register, identify job opportunities, track, and monitor all persons with a priority entitlement. The PSC also monitors the results of organizations' assessment of persons with a priority entitlement and adherence to the requirements of the Directive and guidance materials related to priority entitlements.

PSC Priority Entitlement Consultant: PSC Priority Entitlements Consultants (PEC) are PSC staff available to answer workers’ questions regarding Priority Entitlements and the use of the Priority Portal. PECs can answer questions on the appropriate use of skill codes and job types, groups and levels for referrals, entitlements and the feedback process. Persons with priority entitlements can reach a Priority Entitlements Consultant by telephone, via the Priority Entitlements Voicemail at 1-855-235-3113 or local to the NCR at 819-420-6931 or by e-mailing their enquiry to cfp.adminpriorite-priorityadmin.psc@cfp-psc.gc.ca.

Reasonable Job Offer: an offer of indeterminate employment within the core public administration, normally at an equivalent level, but which could include lower levels. Surplus employees must be both trainable and mobile. Where practicable, a reasonable job offer shall be within the employee's headquarters as defined in the Travel Directive. In alternative delivery situations, a reasonable offer is one that meets the criteria set out under Type 1 and Type 2 in Part VII of this Appendix. A reasonable job offer is also an offer from a FAA Schedule V employer, providing that:

(a) The appointment is at a rate of pay and an attainable salary maximum not less than the employee's current salary and attainable maximum that would be in effect on the date of offer.

(b) It is a seamless transfer of all employee benefits including a recognition of years of service for the definition of continuous employment and accrual of benefits, including the transfer of sick leave credits, severance pay and accumulated vacation leave credits.

Reinstatement priority: an entitlement provided to surplus employees and laid-off persons who are appointed or deployed to a position in the core public administration at a lower level. As per section 10 of the Public Service Employment Regulations, the entitlement lasts for one year.

Relocation: the authorized geographic move of a surplus employee or laid-off person from one place of duty to another place of duty located beyond what, according to local custom, is a normal commuting distance.

Relocation of a work unit: the authorized move of a work unit of any size to a place of duty located beyond what, according to local custom, is normal commuting distance from the former work location and from the employee's current residence.

Retraining: on-the-job training or other training intended to enable affected employees, surplus employees and laid-off persons to qualify for known or anticipated vacancies within the core public administration or the agency.

SERLO Process (Selection of Employees for Retention and Lay-off): The Public Service Employment Act gives the Public Service Commission the authority to create regulations that determine the process for laying people off. SERLO is the process the Employer has used in the past and currently favours for deciding which employees will be retained and which employees will be made opting. The process is outlined in the Public Service Commission’s Guide on the Selection of Employees for Retention and Lay-off.

During the collective bargaining round that concluded in 2023 PSAC negotiated a Letter of Understanding with Treasury Board that binds the parties to influence the Public Service Commission to consider a seniority process instead. PSAC subsequently provided the PSC with a proposal for “Equitable Seniority” as an alternative to the SERLO process, which lacks transparency and equity. In September 2024, the PSC instead introduced changes to the regulations that entrenched the SERLO process into regulation.

Surplus Employee: an indeterminate employee who has been formally declared surplus, in writing, by their deputy head.

Surplus priority: an entitlement for a priority in appointment accorded in accordance with section 5 of the Public Service Employment Regulations and pursuant to section 40 of the Public Service Employment Act. This entitlement is provided to surplus employees to be appointed in priority to another position in the core public administration for which they meet the essential requirements. In a WFA situation, employees are entitled to a surplus priority when they receive a guarantee of a reasonable job offer which is unlimited or they are made opting and they choose Option A which time limited for up to one year.

Surplus Status: there are two types of surplus status. Indefinite surplus status means that an indeterminate employee has surplus status from the date they are declared surplus until the date of lay-off, until they are indeterminately appointed to another position or until the person resigns depending on the type of surplus status which applies. Time-limited surplus status occurs when an employee chooses Option A in 6.4.1 the WFAA. The employee then has surplus status until they find another position or until the surplus status granted by their choice ends and that status is rescinded (most often a year from when the employee officially made the choice).

Transition Support Measure (TSM): one of the options provided to an opting employee for whom the Deputy Head cannot guarantee a reasonable job offer. The transition support measure is a cash payment based on the employee's years of continuous employment, as per Annex B of the WFAA.

Twelve (12) month surplus priority period in which to secure a reasonable job offer: one of the options provided to an opting employee for whom the Deputy Head cannot guarantee a reasonable job offer.

Workforce adjustment: a situation that occurs when a Deputy Head decides that the services of one or more indeterminate employees will no longer be required beyond a specified date because of a lack of work, the discontinuance of a function, a relocation in which the employee does not wish to participate or an alternative delivery initiative.