Work force adjustment policy

1. Effective date

This policy takes effect on September 5, 2025.

2. Objective

The objective of this policy is to mitigate the effects of work force adjustments on indeterminate employees, and, whenever feasible, to prioritize the provision of alternative employment opportunities for those affected.

3. Application

This policy applies to all indeterminate employees of FINTRAC appointed pursuant to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).

4. Responsibilities

Director and Chief Executive Officer

• Overall responsibility for the strategic direction and oversight of the organization's operations, including the power to determine work force needs and realignments.
• Approve when the services of one or more indeterminate employees will no longer be required beyond a specific date.
• Conduct ongoing assessments of the contingent work force to mitigate any potential repercussions on indeterminate employees.
• Establish work force adjustment committees, where appropriate, to advise and consult on the work force adjustment situations within the Centre.
• Approve the transition support measures for surplus employees.

Chief Human Resources Officer (CHRO)

• The CHRO is responsible for developing and implementing a work force adjustment framework in accordance with strategic direction set by the Director.
• Maintain a repository of all cases occurring under this policy, including: the reasons for the actions; the number and levels of the employees concerned; the notification dates; the number of employees laid-off and names; the number and names of employees that are placed, the levels and the cost of any salary protection; and the number and type of lump-sum payments, and amounts.
• Provide oversight on the decision-making processes to ensure the selection of employees for lay-offs is conducted in accordance with the principles of fairness and free of discrimination or bias.
• Monitor the use and effectiveness of this policy and make enhancements when required.

Sector head

• Carry out effective human resource planning to minimize the impact of work force adjustment situations on indeterminate employees.
• Develop a comprehensive plan to manage the work force adjustment process and wherever possible, seek to identify alternative employment opportunities within the organization for surplus employees.
• Ensure clear and consistent communication with employees about the reasons for the work force adjustment, the process, and the potential impacts.
• Select employees fairly and impartially for retention based on objective criteria.
• Document in writing the rationale for those being selected for lay-off.
• Ensure clear communication throughout the work force adjustment process.

Human resources professionals

(Strategic Human Resources Business Partners and Human Resources Programs and Policies)

• Provide strategic advice and guidance to management on the implementation of work force adjustment measures.
• Assist management with organizational design, facilitating the placement of surplus employees, and aiding in the identification of employees for lay-off as part of strategic human resource planning and work force adjustment measures.
• Provide information to employees impacted by work force adjustment about their rights, exploring various options, and guiding them towards resources available for their assistance.

5. Requirements

Situations that could result in a work force adjustment include:

• Lack of work, discontinuation or reduction of a function
• Transfer and/or consolidation of functions
• Fiscal reductions or expenditure constraints
• Amendments to legislative mandate of FINTRAC
• Relocation of a work unit

• 5.1 As a direct result of a work force adjustment situation, the Director may determine that the services of one or more indeterminate employees will no longer be required beyond a specific date.
• 5.2 Prior to undertaking a work force adjustment exercise, the Director may solicit all or certain portions of the organization to determine whether there are employees that would have an interest in voluntarily being laid-off.
• 5.3 The Director may convene one or more work force adjustment committees to facilitate and oversee a fair and efficient restructuring exercise to identify surplus employees and strategically design a future work structure that aligns with the organization's evolving needs and objectives.
• 5.4 When it is anticipated that an employee's position may be eliminated due to a Work force Adjustment situation, the Director may designate the employee as "affected" for a specified period. The period may be extended at the Director's discretion if needed.
• 5.5 When it has been determined that the services of an employee are no longer required within the Centre, including from those who expressed an interest in voluntarily being laid-off, the Director or the delegated official will advise the employee in writing of their surplus status, including the end date of the surplus period, and the reasons for this decision.
• 5.6 The surplus period will normally be one (1) month from the receipt of written notification, unless otherwise specified by the Director.
• 5.7 In providing the notification, the employee will be advised which career transition options are available to them under Annex A. The Director retains the discretion to provide one or both options, taking into account the fiscal situation of the Centre.
• 5.8 If both options are offered, the employee will have the surplus period to select their option. If no option is selected, the employee will be deemed to have selected option 1.
• 5.9 The Director retains the authority to rescind an employee's surplus status and the corresponding notification at any time during the surplus period.
• 5.10 For employees entitled to Option 1 or 2, no other severance or compensation payments will be issued other than any compensation owed due to the elimination of severance pay for voluntary separations that has not already been cashed-out.
• 5.11 Surplus employees who are eligible for an annual allowance may also be eligible for a pension waiver, as outlined in Annex B.
• 5.12 Employees with affected or surplus status may request authorization to access financial and/or job placement counselling services, up to a maximum of $1,000 during their status period.
• 5.13 Should the surplus employee be offered a position with a lower rate of pay, the employee can choose to accept the appointment, or alternatively, opt for one of the career transition options offered to them under 5.7.
• 5.14 If a surplus employee is permanently appointed to a position with a lower rate of pay, they may be eligible for salary protection in accordance with the applicable terms and conditions of employment.
• 5.15 A surplus employee who receives a lump-sum payment and who, during the period to be covered by the lump-sum payment, is reappointed to FINTRAC or appointed to a position in the Federal Public Service, shall reimburse the Receiver General for Canada by an amount corresponding to the period from the effective date of re-appointment or rehire to the end of the original period for which the lump-sum was paid.

6. Authorities

Proceeds of Crime (Money Laundering) and Terrorist Financing Act

7. Definitions

Work force adjustment: work force adjustment refers to a situation in which FINTRAC determines that the services of one or more indeterminate employees will no longer be required beyond a specified date due to organizational or operational changes. These changes may include:

• Lack of work, discontinuation or reduction of a function
• Transfer and/or consolidation of functions
• Fiscal reductions or expenditure constraints
• Amendments to legislative mandate of FINTRAC
• Relocation of a work unit

Affected status: a designation given to an employee when the organization anticipates that their position may be eliminated or their services may no longer be required due to workforce adjustment. The duration of this status is determined by the Director and may be extended at their discretion.

Lay-off: permanent separation of an employee from their job due to reasons outlined in section 5 of this policy.

Notification to the employee of surplus status: written notice to the employee from the Director or the delegated official advising the employee that their services will no longer be required, the reasons why, their options, and confirming the end of their surplus period.

Pension waiver: allows an employee, who resigns or is laid off due to work force adjustment (WFA) before their normal retirement age (60 or 65), to receive an unadjusted pension benefit, avoiding the normal pension reduction for early retirement.

Continuous service: an unbroken period of Public Service employment (see Public Service Superannuation Act). Continuous service is broken when employment ceases for at least one compensation day between two periods of Public Service employment.

Federal public service: refers to organizations named under Schedules I, IV and V of the Financial Administration Act.

Relocation of a work unit: movement of a work unit to a different geographical location. Employees in these situations could be subject to the Relocation Directive or be declared surplus under this policy if they do not wish to relocate.

Substantive position: the official, permanent position to which an employee has been appointed indeterminately.

Surplus employee: an indeterminate employee who has been formally advised by the Director or delegate, in writing, that their services are no longer required as a result of a work force adjustment situation.

Surplus period: one (1) month from the receipt of written notification of the proposed date of lay-off, unless otherwise specified by the Director. If Option 2 is selected, the surplus period would be extended to include the duration of the LSP period that they would otherwise have been entitled to under Option 1 – Table 1 – however, the duration of leave could be reduced at the discretion of the Director, with any remaining weeks owed paid as a lump sum.

Transfer of function: when an employee's functions are transferred to within the organization as part of restructuring or transferred externally.

Annex A: Transition support measures

Option 1: Lump-sum payment (LSP)

The employee may opt to be laid off at the end of their one-month surplus period, or earlier, and receive a lump-sum payment based on their completed years of continuous service (Table 1), calculated in accordance with the employee's current substantive rate of pay.

For part-time employees, the lump sum payment will be pro-rated based on the schedule that they have at the time that their position is declared surplus.

Payment shall be in one or two lump-sum amounts to be paid within the fiscal year that the work force adjustment occurs.

Option 2: Leave with pay for other reasons

In lieu of a LSP, a surplus employee can instead opt to have their surplus period extended to include the duration of the LSP period that they would otherwise have been entitled to under Option 1 – Table 1. During this extended surplus period, the employee will be placed on 'leave with pay for other reasons'. At the end of the surplus period, the employee will be laid-off with no further compensation. The Director does retain the discretion to limit the leave period that can be taken and pay any outstanding weeks owed in a lump sum payment when the employee is laid off.

During the surplus period, the surplus employee remains subject to FINTRAC's Code of Conduct, Values and Ethics and also remains eligible to apply to all public service jobs that are restricted to employees of the public service, for as long as they are on leave.

Surplus employees must notify the Values and Ethics Office before accepting any external employment while on leave. If the surplus employee secures alternate employment before the end of the leave period or requests an earlier lay-off date, the duration of the leave will be reduced. Any remaining leave will be compensated as a lump-sum payment, provided that the employee does not secure a position within FINTRAC or any other Federal Public Service employment before the end of the original period for which the lump-sum was intended.

Annex B: Pension waivers

Surplus employees who are eligible for an annual allowance, but are not yet entitled to an immediate annuity may be eligible for a pension waiver, subject to Treasury Board approval:

• Group 1 PSSA members (Hired prior to 2013): Pension Eligibility at Age 60 - Workforce Adjustment and Pension Waivers - Canada.ca
• Group 2 PSSA members (Hired after 2013): Pension Eligibility at Age 65 - Workforce Adjustment and Pension Waivers - Canada.ca