Workforce Adjustment (WFA) is a process set out in the collective agreement that provides rights and benefits for our members who are affected by workforce changes and job cuts. For an overview of WFA and how it works, see the following resources:

• Workforce Adjustment: A Brief Introduction
  
• PSAC Workforce Adjustment webpage

You can also consult Appendix D on Workforce Adjustment in your Collective Agreement.

All questions about your individual situation should be addressed to the employer. Contact your direct manager.

In the 2023 federal budget, the Government of Canada announced that departments would be require to reduce spending.

In addition to these cuts, the Liberal government under Mark Carney called on all departments to find 15 per cent in “savings.” The government has not yet provided the details of their budget reductions, including how many jobs will be affected.

However, the WFA Appendix of the PA collective agreement requires that the employer must notify the union in advance. The agreement also requires that the employer advise and consult with union representatives “as soon as possible” after a decision to implement a workforce adjustment situation has been made and throughout the process.  CEIU National has been actively putting pressure on the departments to establish WFA Committees for consultation, as required under the collective agreement. This will ensure our members’ voices and lived realties are front and centre.

CEIU and PSAC will provide regular updates to our members when we receive more information.

To receive updates, make sure your membership information is up to date.

Keep in mind that the workforce adjustment process is a process that takes place over time, with a specific set of steps that the employer must follow. At each stage, the employer must inform employees about their status, their rights, and next steps.

How does the employer decide who is affected by a WFA situation and who is not? 

With departments being told they must cut their budgets, each department will determine what work will continue and what operations will operate with reduced staff. They will then determine which work units will be affected by any reductions.

Before notifying employees, departments must notify the union of the identity and location of the work units affected, the expected date of the announcement, the anticipated timing of the WFA situation and the number, group and level of the employees who are likely to be affected. Unions must be notified at least two business days, in confidence, before any employees are notified. This allows the union to be prepared to assist our members in those workplaces. The employer must also consult the union throughout the WFA process.

The employer must then notify each employee in the affected work units that they may be subject to WFA or surplus processes. (This is an “affected notice” and does not mean you will necessarily be made surplus or subject to layoff.)

If you have questions about your individual situation, your manager is the best source of information.

Term employees are not covered by Workforce Adjustment, Appendix D of the Collective Agreement.  

For more information about the rights of term employees, see the Term Employees: FAQ

Any approved leave remains approved unless otherwise communicated by your manager. See the relevant article of the collective agreement pertaining to your leave, to understand how and when management may cancel an approved leave. 

Employees on paid or unpaid leave are under no greater or lesser risk of being affected by a workforce adjustment situation. While you are on leave, your manager must provide the same notice of a WFA situation as they would to any employee whose job is affected.

During the WFA process, managers should consult with Human Resources as to how to deal with specific leave situations and must consider your situation before deciding how they will move forward. Employees on long term sick leave, parental leave, or other leaves related to human-rights-protected grounds must be provided with accommodations as needed.  Each situation must be treated on a case-by-case basis; therefore, if you have questions regarding your individual situation, please speak to your manager for information. If you need further assistance, contact your local union representative.   

Your rights and obligations, and those of the employer, remain the same regardless of your acting status.  Since your employment status remains attached to your substantive position for the duration of the acting assignment, if your substantive position is affected by WFA, you will be returned to that position and provided with the rights and options under the Workforce Adjustment Appendix.

If there are more employees than there are remaining jobs, the employer must determine which employees remain in their jobs and which are declared surplus. The process for making this decision is called the Selection of Employees for Retention or Layoff, or SERLO.

While this process is not a competition, there are some similarities. The employer must determine the qualifications and requirements of the jobs that are remaining and evaluate employees against those. There are several methods the employer can use to assess employees. For more details about the SERLO process, see our FAQs on SERLO or the SERLO Guide for Managers.

Due to existing legislation, management determines who is retained and who is laid off when the employer has decided to make changes to the workforce, including job cuts. The selection is based on “merit” as defined by the Public Service Employment Act and is not covered by the collective agreement.

If an entire work unit is being relocated, you will have the option to either relocate with your job or be subject to the WFA provisions.

If you are a surplus employee in receipt of a Guarantee of a Reasonable Job Offer or who has chosen Option A (12-month surplus priority status), the employer must look for jobs within your preferred location. The WFA Appendix states that “Departments or organizations will make every reasonable effort to market a surplus employee within the employee’s surplus period within his or her preferred area of mobility.”  However, in some cases, a relocation may be the only offer provided if the employer can’t give you a reasonable job offer in your area. In that case, if you do not accept an offer of a reasonable job involving relocation, you may be laid off.

Yes. If you accept a job that is located more than 40km from your prior home office, you are entitled to relocation under the National Joint Council Relocation Directive.   

You may have to accept a lower-level job if one is offered to you. However, if you accept a job at a lower classification level, your salary will be protected at your prior substantive classification level. This salary protection (commonly referred to as “red circling”) continues until you’re appointed or deployed into a position with a maximum rate of pay that is equal to or higher than the maximum rate of pay of your previous (surplus) position.

If you resign and later return to the Public Service, you will no longer be entitled to the salary protection.

A notice that you are “affected” or “surplus” is not a layoff notice.

The WFA Appendix ensures that involuntary layoffs are kept to a minimum during workforce adjustment situations. Article 1.1.14 of the Appendix states: “Deputy heads shall apply this appendix so as to keep actual involuntary layoffs to a minimum, and a layoff shall normally occur only when an individual has refused a reasonable job offer, is not mobile, cannot be retrained within two (2) years, or is laid off at his or her own request.”

Layoffs can only occur after certain other steps of the WFA process have been followed, as outlined in the WFA Appendix:

• Under Option A (12-month surplus priority), an employee unsuccessful inmay be laid off at the end of the if the employer has been unsuccessful in making the employee a reasonable job offer (Appendix D, 4.2.6).
  
• Under Option C(ii) (education allowance with 2-year leave without pay), at the end of the two-year leave without pay period, unless the employee has found alternative employment in the core public administration, the employee will be laid off in accordance with the Public Service Employment Act. (Appendix D, 6.1.4(c)(ii))
  
• When a surplus employee refuses a reasonable job offer, he or she shall be subject to layoff one (1) month after the refusal, but not before six (6) months have elapsed since the surplus declaration date. (Appendix D, 1.1.32)

In all cases, the employee will have at least one month of notice, but up to six months, as noted above.

Employees who are laid off are entitled to layoff priority for one year for any jobs for which they meet the essential qualifications.

Note: The Public Service Superannuation Act (PSSA) provides that employees aged 55 to 59 (Group 1: hired before 2013) or 60 to 64 (Group 2: hired in 2013 or later) with 10 years or more of service are eligible for the pension waiver.

The pension waiver applies to those who are laid off after a priority period or those who resign and choose Option B (Transition Support Measure). It is not available if you refuse a reasonable job offer or if you choose Option C (Education Allowance). The pension waiver can also be applicable to those who choose to alternate (see section on Alternation below).

For more information see Workforce Adjustment and Pension Waivers.

Yes. Article 66 of the PA Collective Agreement outlines the severance pay entitlements for laid off employees. The WFA Appendix also provides that surplus employees who resign under the provisions of the Appendix will be deemed to be laid off for severance pay purposes.

As well, Appendix L outlines additional severance for certain employees who chose to defer severance payments. This does not apply to all employees. Review Appendix L for more information. 

WFA forms part of the collective agreement and can be addressed within the grievance procedure if the terms of the collective agreement are violated. Each situation must be assessed prior to determining the appropriate next steps or recourse to be taken. If you have concerns about your situation or feel your collective agreement rights have been violated, the first steps are to review this FAQ and other information about WFA, and to speak to your manager to obtain clarification in writing. If your concern hasn’t been addressed, you can then follow up with your local union rep to discuss possible next steps.

In WFA situations where five or more employees at the same group, level and work unit are affected, the first step that a department must take after notifying employees is to establish a Voluntary Departure Program, or VDP.

A VDP allows affected employees who wish to leave the public service to come forward and volunteer to resign in exchange for certain options under the WFA Appendix that provide lump sum payments and other financial benefits. Employees have 30 days to decide whether to volunteer.

The VDP is voluntary and allows for affected employees to choose to leave the public service if they wish to do so. Employees who choose not to volunteer will proceed through the next steps of the WFA process as outlined in the WFA Appendix.

It is important to note that if there are more volunteers than there are positions to be cut, the volunteers are selected in order of seniority with the most senior granted voluntary departure. 

If you participate in VDP and resign, you are deemed to have been laid off and are therefore eligible for EI Regular Benefits. However, your Transition Support Measure and any severance must first be allocated based on your normal gross weekly earnings, delaying your first week of entitlement to EI benefits accordingly. There are further conditions to demonstrate eligibility for EI benefits in any given week, and you should consult Service Canada for more information. 

Alternation is available to workers during certain stages of the workforce adjustment process. It allows an opting or surplus employee to remain employed by exchanging positions with a non-affected employee willing to leave, thereby preserving employment opportunities within the public service. It is the employer’s obligation to facilitate alternation, and management cannot arbitrarily or unfairly deny alternation requests. 

According to the WFA Appendix, an alternation may occur between employees at the same group and level. When the two positions are not in the same group and at the same level, alternation can still occur when the positions can be considered equivalent. They are considered equivalent when the maximum rate of pay for the higher-paid position is no more than six per cent higher than the maximum rate of pay for the lower-paid position. 

Only opting employees or employees who are in the 12-month surplus period under Option A can alternate with non-affected employees. Opting employees have 120 days to decide on one of three options, or to alternate with an employee who has not be given an affected letter. Opting employees who choose Option A, 12-month surplus status, will continue to have access to alternation until the end of their surplus period (or until they accept a reasonable job offer during the surplus period).

• Someone in the core public service: All departments must participate in the alternation process, but alternation can only take place within the core public administration. This means that employees in public service departments such as IRCC and ESDC cannot alternate with employees from separate agencies (such as Canada Revenue Agency), or Crown corporations (such as Canada Post).
  
• Someone at the same group and level, or at an equivalent level (no more than 6% higher maximum salary).
  
• You must meet the qualifications for the position you want to alternate into, including language requirements.

If you are an opting/option A employee and want to alternate, or if you are an unaffected employee and want to leave the public service, you should consider:

• Immediately advising your manager in writing that you are interested in alternation. Request in writing that your employer provide you information on the process for alternation presently in place and how they intend to facilitate and assist you in finding a match.
  
• Using the departmental alternation forum on the intranet and the public service-wide alternation forum administered by the Treasury Board to look for potential matches.

Once you have found what looks like a good match, we encourage  each matching employee to notify their manager and their local union representative, in writing, about the possible match and in which department the other employee (alternate or opting) resides.

In this email, alert your manager or Human Resources officer and request: (1) that the employer meet their obligations under 6.2 of the WFAA and (2) that the manager/HR officer contact their counterpart in the home department of the other (alternate/opting) employee. This request should include a reasonably short time limit (i.e. 2 or 3 days) for a response. Opting employees only have 120 days within which to alternate, so timeliness is important.

The union representative should report the details of the possible match to their leadership representatives in the region, or to the union representative(s) on the regional or national Workforce Adjustment Committee, so that they are aware of it and can also monitor the progress of the potential match.

The potential new employer of the opting employee can refuse the alternation on the grounds that the proposed match or alternation isn’t likely “to result in retention of the skills required to meet the ongoing needs of the position and the core public administration” or if the opting employee is not qualified for the position.  The employer must demonstrate why they have refused the alternation, and why some retraining couldn’t address the perceived gap in qualifications.

The potential new employer cannot simply say that they refuse to participate because they want to take care of their own employees first, or because it doesn’t match their HR planning. Alternation is an obligation under the collective agreement.

If you are a non-affected employee, you can submit your interest for alternation at any time.  If change your mind, you can withdraw your request at any time prior to exchange postings with an opting employee.

Alternating employees will only be entitled to either option B (transition support measure) or option C (education allowance).

Discussions around alternation and proposed alternation opportunities must be addressed at WFA committees, union-management consultation committees or whatever union management consultation forum is in place and works.

Union representatives on WFA committees or other union representatives can provide some information and assistance in alternations but the process is largely between the employees and their managers.

If you have been denied an alternation request, contact your union representative.

If an opting employee does not find a match within the 120-day opting period, they must make their choice as to which of the options they wish to take.

If they choose Option A, the 12-month surplus period, they may continue to look for possible alternations during their surplus period. If, by the end of their 12-month surplus period, they have not found an alternation or accepted a reasonable job offer, they will be laid off.

Opting employees who choose Option B, C(i) or C(ii) will no longer be eligible for alternation once they have notified the employer of their chosen option.

The Selection of Employees for Retention and Lay-off (SERLO) is the management-designed process used to determine who is retained and who is laid off when the employer makes job cuts.

The employer determines how many employees will be needed and, if there are more employees than jobs available, a SERLO process will be used.

For example, if there is a work unit with 10 employees at the same group and level, and seven of those jobs will be retained, the employer will run a SERLO process to determine which seven of those employees will retain their jobs and which three will be declared surplus/laid off.

More detailed information about the process can be found in the SERLO Guide for managers and human resources specialists.

No, the SERLO process is not in the collective agreement. The employer has refused to negotiate this part of the layoff process and instead legislated into the Public Service Employment Regulations.

Although it is similar, a SERLO process is not considered an appointment process under the Public Service Employment Act.  Therefore, the qualifications, requirements, and needs established can differ from those used in an appointment process.

Management has unilateral discretion to determine the essential qualifications that are most relevant for the work to be performed, and any additional qualifications they consider to be an asset, now or in the future. This determination can include any current or future operational requirements or needs of the organization.

Official Language requirements must be an essential qualification, not an asset qualification and, therefore, non-imperative staffing does not apply. Employment equity can also be considered.

Note that the qualifications could differ from the job that employees are currently doing, as the workforce adjustment situation could mean that some parts of the job will change.

The Public Service Employment Regulations also require the employer conduct an evaluation to identify whether any assessment method in a SERLO process is needed, and the manner in which it is to be applied, includes or creates biases or barriers that disadvantage persons belonging to any equity-seeking group and, if a bias or barrier is identified, make reasonable efforts to remove it or to mitigate its impact on those persons.

If an employee does not want to participate in the SERLO process, that does not result in their withdrawal from the process. Management will determine how to deal with these situations on a case-by-case basis in determination with an HR specialist. Refusal to participate does not protect you from job loss and may disadvantage you in retaining your position.

CEIU continues to raise concerns through WFA Committees about the potential negative impacts for employees on long-term leave of absence and to advocate for fairness and equity.

Leaves of absence relating to protected grounds under the Canadian Human Rights Act, such as maternity/parental leave or long-term sick leave, for example, must be treated carefully by the employer and accommodations must be made. In each case, managers should consult with Human Resources to determine the options. CEIU continues to advocate to protect employees on leave so that they are not treated adversely compared to employees who are not on leave.

 
If you are on leave and you have concerns about your situation, speak to your manager. If your concerns are not addressed, speak to your local union representative.

The employer must advise each employee of:

• the qualification criteria and the assessment methods,
  
• their assessment results,
  
• their right to recourse,
  
• access to available transition services for surplus employees (e.g., counseling, training, job search supports) and the timing of any actions.

Once the process is complete, employees who have been retained have their affected status rescinded. Those who have been selected for lay-off will receive a letter informing them that they are surplus and either being given a Guarantee of a Reasonable Job Offer (GRJO) or are being declared an opting employee.

Employees have a right to know the outcome of the SERLO process, including the results of any assessment method used, and may request this information from their manager.

Employees cannot file grievances, since the SERLO process is not contained in the collective agreement. However, they have a right to file a complaint under the Public Service Employment Act if their selection for lay off constitutes an abuse of authority (s. 65(1)).

The definition of “abuse of authority” is the same as that used in staffing complaints. It is not defined in the legislation but has been interpreted in decisions of the Board and the courts. Abuse of authority includes the following:

• Bad faith
  
• Personal favouritism
  
• Serious errors and omissions
  
• Discrimination on the basis of one of the grounds set out in the Canadian Human Rights Act

It is not necessary to establish that the employer intended to abuse its authority.

Note that is very difficult to prove a case of abuse of authority and requires clear evidence. If you have questions about filing a complaint, speak to your local union representative.

An opting employee is a surplus employee who has 120 days to choose one of the options under 6.4.1 of the WFA Appendix. Those options are: (a) 12-month surplus status, (b) resignation with the transition support measure, or (c) education allowance plus the transition support measure.

The 120-day period begins on the date of receipt of the letter notifying the employee that they are deemed an Opting employee. 

It does not begin from the notice of affected status letter; the employee must further be notified whether they will be deemed Opting or given a Guarantee of a Reasonable Job Offer. Only after the notification of opting status does the 120-calendar day period start.

Opting employees have the following options:

1. Surplus with surplus priority status for 12* months: During this period, their department is required to try to find them a job. If they don’t receive a reasonable job offer (see definition below) within that period, they will be laid off.
   
   *Note: This can be up to 16 months, as an employee may request that any time remaining in the opting period be added to the 12-month surplus priority period.
   
2. Transition support measure: Employees receive a cash payment based on their years of service (as outlined in Annex B of the WFA Appendix) but must resign without priority rights.
   
3. Education allowance: Employees receive the transition support measure payment, along with up to $17,000 for reimbursement of receipted educational expenses. They have the option of taking the education allowance in one of two ways:
   
   a. Resign (but considered laid off for severance purposes), or
   
   b. Take a two-year leave without pay while attending the educational institution.

Further details on each of these three options are provided below.

All opting employees are entitled to $1,200 for counseling services related to their potential re-employment or retirement.

Once you submit your choice in writing to your manager, you cannot change it. For this reason, members should take advantage of the counselling provided and consider all options carefully before making a choice.

If you fail to communicate your choice within the 120-day timeframe, you will be deemed to have selected option 6.4.1a, and be placed on the surplus priority list for a period of 12 months for staffing purposes, after which you will be laid off if no employment has been secured.

If you haven’t yet submitted your choice in writing and ayou are given a reasonable job offer that does not require relocation, the options will no longer be available to you.

Yes, you may return if you find a job in the public service. However, if you chose option B or C, you may have to pay back some of your transition support measure or education allowance, depending on when you return. The WFA Appendix states that a person who has received pay in lieu of an unfulfilled surplus period, the transition support measure, or education allowance and is reappointed to the public service must reimburse the government the amount of the payment from the date of reappointment until the end of the original period for which it was paid (6.4.7). If you cannot get reimbursed for a receipted education expense, you will not have to repay that amount (6.4.8).

For example: Employee A with 15 years of service chooses option B and their TSM is 50 weeks of pay (as per Annex B). Thirty weeks later, they find a job in the public service and return. In this case they would need to pay back 20 weeks of their lump sum.

Having surplus priority status means that, for any job for which you meet the essential merit criteria, your candidacy is identified to the hiring manager through the priority list, and you are entitled to the position above all other non-priority candidates.

In the event of multiple qualified priority candidates, further assessment may be conducted for selection. In order to be in the government-wide Priority Information Management System (PIMS), you must complete the process provided by the employer.

While this process is automated, you still share responsibility in locating suitable work and bringing to the attention of the priority list managers job opportunities that you would like to be considered for.  It is highly recommended that you actively seek a new job and market yourself for job opportunities as they arise.

If you believe you have a suitable alternative job available, for example through a qualified pool, you could choose option 1 (6.4.1a) and pursue the employment opportunity with surplus priority status. However, you should be cautious about any informal or verbal commitment and seek appropriate counselling before making your decision. The employer is obligated to provide counselling under the provisions of WFA policy. 

You are removed from the priority list as soon as you find alternative work, whether it arises from the priority list, a pool you freely qualified in, or any other deployment.

The WFA Appendix defines a “reasonable job offer (RJO) as a job that is:

• indeterminate and within the core public administration.
  
• normally at an equivalent level, but which could include lower levels  (salary-protected with priority for a job at your former level).
  
• “where practicable” shall be within the employee’s headquarters as defined in the Travel Directive.
  
• It can also include a job at a separate agency as long as the salary is not lower and there is a seamless transfer of all employee benefits and years of service. (Separate agencies are listed under Schedule V of the Financial Administration Act).

If needed, retraining may be provided. You do not have to accept an RJO, but if you refuse, you will be laid off. They layoff will occur one month after the job refusal, but not before six months since the surplus declaration date.

If you are laid off, you will have lay-off priority for one year and will receive severance pay at the layoff rate. You will not have access to any of the options (transition support measure or education allowance) nor a pension waiver.

If a surplus employee refuses a reasonable job offer, they may be laid off one month after the refusal, but not before six months have elapsed since the surplus declaration date.

If you are laid off, you will have layoff priority for one year and will receive severance pay at the layoff rate. You will not have access to any of the options (transition support measure or education allowance) or a pension waiver.

The WFA Appendix (Appendix D of the Collective Agreement), Annex B, provides the years of service calculations for TSM.  

Article 66 provides a calculation of severance in the event of layoff and is in addition to your TSM payment. Note: severance pay also includes that under Appendix L, which does not apply to all employees. Review Appendix L for more information. 

You are also entitled to a payout of any vacation balance outstanding in your account, prorated to the month of your termination.

TSM is issued no sooner than the effective date of the employee’s notice of resignation and can be paid in one or two lump sums over a maximum two-year period (Appendix D, 6.4.1b). 

The Education allowance is an amount up to $17,000 for reimbursement of expenses for tuition from a recognized learning institution and costs of books and relevant equipment.

The collective agreement does not limit the tuition reimbursement to specific institutions or types of study. There are no limits on what you can study as long it is at a recognized educational institution, such as a college or university. It can also be used for multiple programs. You must provide receipts to be reimbursed.

In both cases, the employee receives the Transition Support Measure (TSM) and education allowance. However, the differences are as follows:

In Option C(i), an employee:

• resigns from the public service
  
• is considered laid off for severance purposes (meaning they receive severance pay in addition to the TSM)
  
• relinquishes any priority rights for reappointment upon the Employer’s acceptance of their resignation

In Option C(ii) an employee:

• delays their departure date and goes on leave without pay (LWOP) for a maximum period of two years while attending the learning institution
  
• can receive the TSM in one or two lump-sum amounts over a maximum two-year period
  
• can opt to continue in the public service benefit plans and pension (must contribute both employer and employee shares of those plans)
• will be laid off at the end of the two-year LWOP (with one-year layoff priority status), unless they have found alternative employment in the core public administration
  
  Note: Employees choosing Option 6.4.1(c)(ii) must provide their department with proof of registration from a learning institution within 12 months after starting their LWOP. If they do not, they will be deemed to have resigned (and considered laid off for purposes of severance pay).