Changes to Public Service Employment Rules

Summary#

The Public Service Commission has published proposed changes to the Public Service Employment Regulations to modernize how federal hiring priorities, acting appointments and lay-offs work under the Public Service Employment Act. This is a proposal (not law yet); comments are invited within 30 days of publication on September 7, 2024.

What it does#

• Changes how short-term “acting” appointments are measured by referring to the Definition of Promotion Regulations so it’s clearer when an acting assignment counts as a promotion.
• Broadens the definition of a “standardized test” to include tests that are not competency-based.
• Adjusts priority-entitlement rules (the right some people have to be appointed ahead of others):
  • Renames one entitlement to “employee unable to carry out their duties.”
  • Extends some priority-entitlement periods from two years to five years for people who can’t perform duties for medical reasons and for some former Royal Canadian Mounted Police members discharged for medical reasons.
  • Gives an extra three-year “catch-up” entitlement to people whose two-year entitlement recently ended (with some exceptions).
  • Extends the time surviving spouses or common-law partners have to request a priority entitlement from two years to five years, with an additional three-year catch-up window for recent cases.
  • Clarifies and narrows the scope of a “reinstatement” entitlement. It removes persons released from the Canadian Forces (for medical reasons) from one reinstatement list because those roles don’t match public service job levels.
  • Removes obsolete transitional rules that no longer apply.
• Rewrites lay-off rules to make them clearer and more transparent:
  • Requires written notice to employees being laid off, including the reason, lay-off date (or a promise to notify later), and, where relevant, the reasons they were chosen.
  • Requires written notice to employees who are retained (not laid off).
  • When only some employees in a group are to be laid off, deputy heads must:
    • Define the employee groups (same occupational group and level doing similar work).
    • Identify the most relevant qualifications, requirements or needs (a subset of merit: essential qualifications, possible assets, operational or organizational needs).
    • Tell affected employees in writing what they’ll be assessed against, how they’ll be assessed, and how to request accommodation.
    • Evaluate assessment methods ahead of time to find and try to remove or reduce biases or barriers against equity-seeking groups.
    • Keep records explaining why each employee was selected or not selected for lay-off.
  • Removes a special seniority rule that applied to the Ship Repair group at National Defence, aligning that group with other occupations.
• Administrative and timing notes:
  • Transitional rules let ongoing lay-off processes continue under the old rules.
  • The proposed rules would come into force on the 30th day after they are registered.
  • The government estimates the changes would have a small net cost, less than $1 million per year, mostly for updating HR processes.

Who's affected#

• Federal hiring organizations and their human-resources offices, since the rules govern how they manage staffing and lay-offs.
• Employees with priority entitlements, especially:
  • People who become unable to carry out duties for medical reasons.
  • Certain former Royal Canadian Mounted Police members discharged for medical reasons.
  • Surviving spouses or common-law partners who might claim a priority entitlement.
• Employees facing lay-off and employees in groups where only some positions remain — they will notice clearer assessment and notice processes.
• Deputy heads and managers who must design and document assessments and lay-off decisions.
• Bargaining agents (unions) and employment equity groups; some unions have already raised concerns about removing or limiting seniority in lay-offs.
• The Public Service Commission, which wrote the proposal and will oversee implementation.
• The change removing the Canadian Forces from a reinstatement entitlement affects members released for medical reasons.

Why it matters#

• People with medical-related priority entitlements get longer protection (five years instead of two years), which could give them more time to find another permanent public service job.
• Lay-offs should be more transparent: employees will get clearer written reasons, be told how they were assessed, and see a record of why decisions were made. That may make lay-off decisions easier to understand and challenge.
• The requirement to check assessment methods for bias aims to reduce unintended disadvantages for equity-seeking groups during lay-offs and retention assessments.
• Some groups (notably unions) worry the changes reduce the role of seniority and could make lay-offs feel less predictable for workers.
• The proposal is expected to have a small overall cost to government operations (about less than $1 million a year), mainly for updating processes and training.