Public Service Employment Regulations Update

Summary#

The final rule, Regulations Amending the Public Service Employment Regulations (registration SOR/2024-295), updates how the federal public service handles priority hiring rights and lay-offs. It clarifies acting appointments, extends several priority-entitlement periods, tightens lay-off notice and selection steps, and sets staggered start dates (see below). The item was published in the Canada Gazette on January 15, 2025 and registered on December 30, 2024.

What it does#

• Changes the definition of an acting appointment to use the methods in the Definition of Promotion Regulations to decide when an acting role counts as a promotion.
• Extends some priority-entitlement periods (people who qualify because of medical reasons) from 2 years to 5 years, and gives certain people an additional transitional period so they can reach the full 5‑year total.
• Extends the time that a surviving spouse or common-law partner can request their priority entitlement from 2 years to 5 years, and gives some people an extra transitional window to make that request (until April 1, 2028 in specific cases).
• Makes a priority entitlement end if a person accepts or declines an indeterminate placement (permanent placement) without good and sufficient reason, including when a term position is converted to indeterminate under subsection 59(1) of the Public Service Employment Act.
• Clarifies and narrows the scope of a reinstatement priority (for people moved to a lower level) so it applies only to positions higher than the employee’s current position, and explains how to determine “higher” or “lower” using the Definition of Promotion Regulations.
• Repeals some obsolete transitional rules and removes the special Ship Repair group rule so lay-off selection rules are more consistent across the public service.
• Tightens and clarifies lay-off rules:
  • Requires written notice to employees who will be laid off that explains the reason, the date their services will end, and their proposed lay-off date (if known).
  • When only some employees in a group are to be laid off, deputy heads must decide and publish the essential qualifications, assessment methods, and operational needs that will guide selection.
  • Allows many types of assessment methods (performance review, interviews, tests), but requires an evaluation to identify and try to remove or reduce biases or barriers that disadvantage equity-seeking groups.
  • Requires that interviews or tests be offered in English or French at the employee’s option, unless the test is specifically to assess language skills.
  • Requires deputy heads to record the reasons for selecting or not selecting each employee for lay-off.
• Clarifies that acting appointments to rotational posts count as rotational only when the job moves staff among workplaces and at least one workplace is outside Canada.
• Broadens the definition of “standardized test” to include tests that are not competency-based.
• Most other existing rules largely remain. The government says net costs are small (under $1,000,000 annually).

Effective dates (summary):

• Priority-related provisions (sections 2–12) come into force on April 1, 2025.
• Other provisions come into force on the 30th day after registration (registration was December 30, 2024, so the 30th day falls on January 29, 2025).

Who's affected#

• Federal public service employees, especially:
  • People with existing or potential priority entitlements (for disability, certain medical discharges, surviving spouses/common-law partners).
  • Employees facing lay-off or who may be assessed for retention during workforce adjustments.
  • Employees on specified-term (term) appointments, since conversion to indeterminate can affect entitlement end dates.
• Managers and HR leaders (deputy heads and staffing officers) who must follow the new notice, assessment and record-keeping steps.
• Public Service Commission (oversees implementation and monitoring).
• Bargaining agents and unions, including Public Service Alliance of Canada (PSAC), which raised concerns during consultation.
• Certain departments named in the text (for example, Department of Foreign Affairs, Trade and Development) are mentioned when describing rotational systems.

If it is unclear who is affected by a particular change, the Regulations themselves and the Commission’s upcoming guidance will be the source for details.

Why it matters#

• Workers with medical-related priority rights get more time (5 years instead of 2 years) to find a permanent public service job. That can help people recover or adjust before returning to work.
• Employees facing lay-off get clearer written notice and more-transparent selection criteria. That can make lay-off decisions easier to understand and challenge.
• The new requirement to check assessment methods for biases aims to protect equity-seeking groups during lay-off selection and reduce discriminatory impacts.
• Managers must update processes and documents, and learn the new steps. The government estimates overall annual costs are small (under $1,000,000), but departments will need to implement the changes.
• The changes aim to modernize and harmonize staffing and lay-off rules across the federal public service.