Severance cash-out win for new federal employees
Treasury Board has granted our policy grievance with respect to the eligibility of indeterminate employees with less than one year of continuous employment to receive the severance cash-out.
- For more information on the severance payout, see: PSAC update on severance payouts
Treasury Board had taken the position that employees with less than one year of continuous employment were not eligible to receive the payments in lieu of severance. They originally maintained that workers were required to have a minimum of one year of continuous employment to earn a week of severance, and that the pro-rating only took effect for partial years above the first year.
Our view of the language is that employees with less than one year of continuous employment are entitled to a pro-rated week for their partial year of service. PSAC filed a policy grievance in May and we received word last week that Treasury Board will follow our interpretation.
As a result, all recently-hired indeterminate employees that are part of the PA, SV and EB groups will receive a severance cash-out payment that corresponds to the time they worked up to the second day of the new collective agreement.
Date Modified : 2011/07/19