Public Service Employment Regulations Update

Summary#

This is a proposed update to the Public Service Employment Regulations published by the Public Service Commission on September 7, 2024. It would modernize rules on priority hiring rights, acting appointments and lay-offs in the federal public service. You can comment on the proposal within 30 days of the publication date (September 7, 2024).

What it does#

• Changes how some priority hiring entitlements work:

  • Extends entitlement periods for employees who are unable to carry out their duties and for people discharged from the Royal Canadian Mounted Police for medical reasons from 2 years to 5 years. It also gives an extra 3-year entitlement to some people whose 2-year period recently ended.
  • Extends the time a surviving spouse or common-law partner has to ask for a priority hiring entitlement from 2 years to 5 years, with an extra 3-year catch-up window for some past cases.
  • Adjusts the “reinstatement” entitlement so it can apply when a person’s term job is converted to indeterminate at a lower level, and removes Canadian Forces members from that specific reinstatement rule.

• Clarifies and updates appointment and assessment rules:

  • Redefines an acting appointment by linking it to the rules in the Definition of Promotion Regulations.
  • Broadens the meaning of a standardized test to include non‑competency tests.

• Changes how lay-offs must be handled:

  • Distinguishes between direct identification for lay-off and selecting employees for retention or lay-off (when some but not all people in an area are affected).
  • Requires written notice to laid-off employees explaining the reason, the date their services end, and the proposed lay-off date (or a note that the date will be provided later).
  • If employees are selected for lay-off after a selection process, they must be told the specific reasons or qualifications used and that they may complain under the law.
  • Employees who are kept (not selected) must be told in writing they will be retained.
  • Deputy heads must define the “most relevant” qualifications, tell employees which assessment methods will be used, and allow requests for accommodation.
  • Before using assessment methods, organizations must evaluate whether those methods create biases or barriers for equity-seeking groups and try to remove or reduce them.
  • Sets simple rules on the language of tests and interviews and requires record-keeping of the reasons for each retention/lay-off decision.
  • Removes a special seniority rule for the Ship Repair group at Department of National Defence to harmonize lay-off processes across the public service.
  • Removes the requirement for organizations to notify the Public Service Commission of laid-off employees’ names (organizations are expected to register priority persons themselves).

• Other administrative points:

  • Repeals some obsolete transitional provisions.
  • Estimates the net cost to the public service as small — less than $1,000,000 annually.
  • Says the proposed regulations would come into force on the 30th day after they are registered.

Who's affected#

• Federal public service employees and job candidates, especially:
  • People with priority entitlements (for example, employees who become unable to do their duties, certain medically discharged RCMP members, and eligible surviving spouses).
  • Employees facing lay-off and those in parts of organizations where some but not all positions are being cut.
• Hiring managers, human resources teams and deputy heads in federal departments and agencies.
• Bargaining agents and unions who represent federal workers.
• The Public Service Commission, which oversees and will publish guidance on the changes.
• Small businesses and the private sector are not affected by these rules.

Why it matters#

• More time to find work inside the federal public service: extended priority periods give some people longer protection to secure an indeterminate job.
• Clearer lay-off process: written notices, stated reasons and record-keeping make lay-offs more transparent.
• A push to reduce bias: requiring evaluations of assessment methods aims to limit barriers against equity-seeking groups during retention or lay-off decisions.
• HR practice changes: departments will need to update staffing rules and train managers on the new steps. The government expects these changes to be low-cost overall.
• This is a proposed regulation, not final. The rules would only change after the comment period and formal registration.