What are the rights of term employees?

Term employees are represented by the union and have access to paid vacation, sick leave, and the Public Service Health Care Plan (after 6 months of work). However, their rights are limited by legislation and policies. 

Departments must provide term employees with at least 30 days' notice of the termination of their contract (see Directive on Term Employment at S. 4.2.7). The employer has the right to end term employment before the originally anticipated end date as long as the notice period is respected. 

The Public Service Employment Act (PSEA) states in S. 58 (1)(2) that, at the end of their term, term employees cease to be considered employees of the public service. This means that the end of a term is not considered a layoff or termination under the public service legislation. 

Managers have control and discretion regarding the length of term contracts, the renewal or non-renewal of a term, early contract termination, and the end date of their term.

Why is this happening now?

In the 2023 federal budget, the Government of Canada announced that departments would have to reduce spending. These cost-cutting measures mean that departments are looking for ways to reduce their budgets.

In addition to these ongoing cuts, the Liberal government under Mark Carney is calling on all departments to find 15 per cent in “savings.” Departments must submit their spending plans by August 28.

For more information see:

• PSAC raises alarm as Carney government announces sweeping public service cuts   | Public Service Alliance of Canada
  
  
• Public services deserve proper planning, not rushed cuts and messy reorganization | Public Service Alliance of Canada
  
  

What should term employees do if your term contract is being terminated, or not renewed?

• Carefully review your most recent contract to ensure you are being given appropriate notice.
  
  
• Familiarize yourself with these FAQs along with the Treasury Board Secretariat’s Directive on Term Employment and  Policy on People Management. Thoroughly review this information page titled, “End of specified period employment.”
  
  

• Identify any pay issues you feel may arise due to periods of leave taken and flag these matters to compensation as soon as possible. If answers are unsatisfactory, carefully document your issue with relevant supporting documents and have inquiries escalated via PSAC’s phoenix/pay escalation team.
  
  
• Request written clarification following the notification of early end to or non-renewal of the term contract to confirm their understanding of the rationales provided. 
  
  

• Document all communication received: official notice/letter, emails or phone calls (write down your best recollection of phone conversations with the date and time).
  
  

• Although not a collective agreement provision or entitlement, it may be worth requesting a letter of recommendation wherever possible.
  
  

Is there any formal recourse available to term employees upon expiry, termination, or non-renewal of their terms?

Unfortunately, there is not. The legislation and policies governing term employment in Treasury Board departments give the employer significant discretion. The Federal Public Service Labour Relations and Employment Board does not have jurisdiction to hear grievances based on the expiration or non-renewal of a term contract (see section 211(a) of Federal Public Sector Labour Relations Act). There are also no rights to file complaints under the Public Service Employment Act (S. 30 (3); S.45; S.58 (1)(2)).

In cases where there is evidence that discrimination was a motive for the non-renewal or early end of a term contract, an employee may contact their local union representative to discuss the possibility of filing a grievance and/or human rights complaint. Members must provide concrete evidence including, but not limited to emails, notes from conversations, or language in the notice (written or verbal).

There must be a connection to a prohibited ground of discrimination (see section 3(1) of the Canadian Human Rights Act) where members can clearly demonstrate that their protected characteristics (i.e. race, age, ethnicity, sex, disability, etc.) were factors directly linked to management’s assessment or decision. This is very hard to demonstrate for a term employee that is not renewed on the originally specified contract date, as supported in jurisprudence (see example).

Does the Workforce Adjustments (WFA) Appendix and Directive apply to terms?

The WFA Appendix in the PA Collective Agreement and WFA Directive do not apply to term or contract employees. The selection of employees for retention or lay off (SERLO) provisions also do not apply. These provisions only apply to indeterminate employees.

Are term employees eligible for internal competitions if their contract is ending?

Once term employment ends, members are typically no longer eligible or have no access to internal competitions and applications. Term employees should direct questions to their supervisor or hiring contact for clear guidelines and support, especially if they have applied to, or been accepted into, hiring pools.

What do I need to do before the last day of my term?

Before your last day of work, you may want to make copies of important documents such as recent pay stubs, your most recent T4, and your leave balances. If you have completed any certifications or training courses, it is also a good idea to keep copies of those records. You may also want to update certain applications, such as your Government of Canada Job Profile, to include your personal email address, since you will no longer have access to your work email. Once your term ends, you will no longer have access to the employer’s system, so be sure to copy any employment-related documents you may need in the future.

Am I entitled to severance?

Questions concerning your specific entitlement and calculation should be first addressed to your supervisor and/or compensation contact, before addressing it with the union. Article 66 of the PA Group collective agreement specifies entitlement to severance due to layoff, including early termination of term contracts.

What if a term member is on maternity or parental leave?

Term employees are entitled to maternity and parental allowance top-up payments if they return to work for a period equal to the period they were in receipt of the allowance. If their term isn’t renewed, these employees may not be able to return to work to cover their obligation pursuant to 38.02(a) and 40.02(a) of the collective agreement. Their repayment is reduced proportional to the period of time remaining on their term of employment between their agreed returned to work date, and the term of employment’s end date. If the term of employment would have ended during the maternity/parental leave period, and they would have required an extension of their existing term of employment in order to return to work, they must repay the full amount. Term employees on maternity or parental leave, or who have returned and still hold an obligation under their allowance agreement, should review the terms of their allowance agreement in full and speak with their union representative if they have question.

What happens to my vacation pay?

If you have any sort of vacation pay owing to you, this should be paid out. This can take a few weeks to receive as the pay centre needs to reconcile all the pay before your final cheque is issued. You also may choose to use your vacation at any point during your term contract, subject to operational requirements. Questions regarding severance should be directed to your supervisor and/or compensation contact.

What happens to my sick leave and benefits?

Sick Leave (SL) is not paid out. It is a benefit available to cover illness during your employment, but it does not provide a payout when your term ends. You are entitled to use your sick leave at any point during your term. This includes for mental health reasons, which are just as important as physical health. If you are experiencing significant stress or anxiety, please make use of your sick leave—it is a reasonable and fully accepted use of this benefit.

In addition, your Employee Assistance Program (EAP) and other benefits remain active for the duration of your term employment. We strongly encourage you to make use of these supports before the end of your term.

As a helpful reminder, certain benefits such as the two-year maximum for eyewear and similar coverage reset as of January 2025.

What are my rights related to retirement?

Individual questions regarding retirement should be directed to your supervisor and/or your compensation contact. For retirement related information please view this PSAC document.

What happens to my pension contributions?

All questions regarding pension contributions and compensation should be directed to your supervisor and/or compensation contact. For more information see the pension website.
 

What if I find another job within the government?
 

If you secure and start a new position within the Government of Canada before your current term ends, there should be no interruption in your employment, benefits, or leave entitlements. Your sick leave and other accrued leave should transfer to your new department.

However, if you begin a new job in the Government of Canada after your term has ended, this counts as an interruption in service. According to Government of Canada, leave credits—including sick leave—may only be restored if you are reappointed within one year of when your term ends.

Additionally, for eligibility in the Public Service Health Care Plan (PSHCP), your new contract typically needs to be at least six months in duration. Once this requirement is met, you will be eligible for the PSHCP upon your return to federal employment. For more information, please visit the Public Service Health Care Plan summary.

What is the employer's role?

• Answering employee questions related to their employment, pension and benefits
  
  
• Issuing proper notice of end of term

• Providing final pay, vacation payout, and Records of Employment

• Respecting collective agreement provisions

• Deactivating system access only after the employee’s last day of work

• Ensure departmental human resources and pay files are updated

• Provide information about returning government assets (badges, equipment, etc.)

• Ensure equity, diversity, and inclusion principles are respected in staffing decisions
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• Avoid discriminatory practices that could disproportionately affect equity-deserving employees.

What is the union’s role?

The union is responsible for:

• Ensuring term employees receive full representation and advocating for their rights and entitlements under the PA collective agreement up to the end of their specified period of employment (the end of their term contract)
  
  
• Advocating against the employer’s reliance on temporary employment
  
  
• Representing members on grievances that meet the criterion identified above (see question, “Is there any formal recourse available to term employees?”)
  
  
  • The union may choose to support individual grievances after term employment ends for issues that arose during employment (for example: Phoenix overpayments where the notice of overpayment was received after employment had ended)
    
    
• Urging departments to consider fairness and equity when making decisions about any changes that affect employees’ job security

Helpful links:

Job bank
https://www.jobbank.gc.ca/home

Government jobs
http://www.jobs.gc.ca/

External job search

https://ca.indeed.com/

Benefits Finder
https://srv138.services.gc.ca/daf/q?id=a1215b94-0fa3-4b6a-b199-947539e264e3&goctemplateculture=en-ca

Employment Insurance
https://www.canada.ca/en/services/benefits/ei/ei-regular-benefit/after-applying.html

Education, training and upskilling
https://www.canada.ca/en/employment-social-development/campaigns/develop-your-skills.html

Additional mental health supports

https://www.canada.ca/en/public-health/services/mental-health-services/mental-health-get-help.html

PA Collective Agreement

https://www.canada.ca/en/treasury-board-secretariat/topics/pay/collective-agreements/pa.html

Disclaimer: some information provided in these FAQ are intended as general guidance only. Specific details regarding individual leave and pension entitlements may vary. For personalized advice, please contact your supervisor or your compensation representative.