New Rules for Locally Engaged Staff

Summary#

The Public Service Commission published a proposal on June 10, 2023 to replace the current rules for locally hired staff abroad with the Locally Engaged Staff Employment Regulations, 2023. If adopted, the new regulations would change how Global Affairs Canada and the Department of National Defence hire and manage locally engaged staff overseas. This is a proposal, not law yet, and comments were invited for 30 days after publication.

What it does#

• Repeals and replaces the existing locally engaged staff rules with the Locally Engaged Staff Employment Regulations, 2023.
• Gives senior department officials (deputy heads — i.e., deputy ministers or their delegates) clear authority to make and delegate appointments for locally engaged staff.
• Aligns hiring with the Public Service Employment Act approach to merit:
  • Deputy heads set qualifications and choose assessment methods.
  • Appointments can be advertised or non‑advertised, and can be for a fixed term or indefinite.
  • It is not necessary to consider more than one person to meet the “merit” requirement.
• Creates a temporary-hire option to meet short-term needs: temporary staff may be appointed for up to 125 working days in a calendar year.
• Changes how employment ends:
  • Lay-offs can happen for lack of work, discontinued functions, or transfer of work; written notice must be given at least one month before the lay-off or as required by local law, whichever is longer.
  • Employees may resign by giving notice in writing and following local law.
  • The new rules remove a previous “priority entitlement” for indeterminate employees who had been laid off.
• Adds oversight and reporting: deputy heads must monitor compliance and report results to the Public Service Commission of Canada within three years of the rules coming into force and then at least every five years.
• Provides transitional rules so competitions and probation periods started under the old regulations continue under the old rules for set periods (for example, competition results remain valid for six months).
• The regulations would come into force when they are registered and when a new exclusion order (required under the law) is approved.

Who's affected#

• Locally engaged staff — people hired outside Canada to work at Canadian diplomatic missions, consulates, and military support units.
• Global Affairs Canada and the Department of National Defence, and their local hiring managers who will use the new hiring options.
• The Public Service Commission of Canada, which will receive compliance reports and offer advice.
• The source says no expected impact on Canadian small businesses. If the source is unclear about other groups being affected, that is not specified.

Why it matters#

• Practical hiring will likely be faster and more flexible for Canada’s missions abroad. The temporary-hire option and broader appointment methods are meant to help meet short-term or unpredictable needs.
• The changes bring overseas hiring practices closer to how the federal public service hires inside Canada, which could simplify training and rules for managers.
• Some workers could see reduced job safeguards compared with the old rules (for example, the removal of a priority right after a lay-off).
• The new oversight and reporting requirements aim to increase accountability about how local staff are hired and managed.
• The government estimates the net annual cost of these changes is small (under $1 million), but the timing of when the rules take effect depends on registration and approval steps that are not fixed in the proposal.