HR-007 - Voluntary Separation Policy_2020
Title: Voluntary Separation Policy
Subject: Voluntary Separation Category: Policy
Policy No.: COS-HR-007 M&C Report No.: 2020-156
Effective Date: 2020-06-08 Next Review Date: (3 years)
Area(s) this policy applies to: Office Responsible for review of this Policy:
All service areas Human Resources
Related Instruments: Policy Sponsor:
City Manager
Document Pages: This document consists of 7
pages.
Revision History:
Common Clerk's Annotation for Official Record
Date of Passage of Current Framework:2020-06-08
I certify that this Policy was adopted by Common Council as indicated
above.
_____________ ___2020-06-08_____
Common Clerk Date
Contact: Stephanie Hossack, Director HR
Telephone: 506-650-7637
Email: stephanie.hossack@saintjohn.ca
Policy Amended: June 8, 2020
POLICY
City of Saint John
VOLUNTARY SEPARATION
1.0 STATEMENT OF PURPOSE
The City of Saint John must confront its financial challenges, both current operating and
structural deficits, in order to move forward to a sustainable and prosperous future. Given the
urgency of forecasted deficits for 2021 and 2022, it is prudent to take measures now to reduce
employment costs, which represent approximately 57% percent of budget.
Objectives
The objectives of this Policy Document are:
to optimally align workforce complement with attainment of Council’s priorities: Economic
Health; Sustainable Infrastructure; and Community of Choice;
to contribute to financially stable and sustainable municipal government by addressing the
budget deficit;
to help create the conditions within which a strong, vibrant, growth-oriented community can
flourish;
to adjust service levels strategically to minimize effects on public safety and quality of life in
our community, and;
to enable workforce planning in order to meet future projected service demand.
2.0 SCOPE
1. The Voluntary Separation Program is offered by the City of Saint John solely in
accordance with the terms and conditions outlined herein. All eligible employees who
make application will be subject to the terms and conditions outlined at “Appendix A” to
this Policy Document.
2. The City of Saint John reserves the right to deny application of the Voluntary Separation
Program to any employee where operations or service could be unduly affected.
3. Moreover, if the number of employees who wish to participate in the program exceeds
the number operationally warranted, the City of Saint John reserves the right to deny the
request.
Policy Amended: June 8, 2020
3.0 DEFINITIONS
Voluntary Separation Program
A Voluntary Separation Program is an incentive program designed to support organizational
downsizing and/or restructuring by offering employees a payment(s) to voluntarily terminate
their employment.
4.0 ROLES AND RESPONSIBILITIES
City Manager
The City Manager determines 1) whether and applicant has satisfied the stipulated eligibility
criteria and standards and 2) whether to approve an applicant for termination of employment
under this Program.
Commissioner of Finance and Administrative Services
The Commissioner of Finance and Administrative Services provides financial input essential to
the design, structure, implementation, and evaluation of the Voluntary Separation Program.
Director of Human Resources
The Director of Human Resources is responsible for administration of the Voluntary Separation
Program across the organization, including providing quality assurance services and resolving
any issues that arise.
Senior Staff
Members of Senior Staff are responsible for evaluation of employee applications for
participation in the Voluntary Separation Program based on operational and service
requirements and for making the corresponding recommendations to the City Manager. Senior
Staff are also responsible for ensuring the elimination of an offsetting position of relative salary
within the Service Area where an employee’s participation in the program is approved but the
employee’s job is not.
5.0 PROCEDURES
The Voluntary Separation Program will be offered only to eligible permanent employees. The
City may elicit interest from employees in voluntarily terminating their employment, but reserves
the right to accept or decline such participation based upon these clearly articulated
organizational requirements. Similarly, any and all such expressions of interest by employees
are without prejudice until the indicated date of withdrawal.
The City Manager, based on recommendations arising from organizational structure reviews,
and consultation with Senior Staff, will make decisions regarding eligibility. Organizational need,
customer service and/or internal service delivery, will shape the relevant determinations.
Accordingly, the Voluntary Separation Program will be of limited enrollment.
Policy Amended: June 8, 2020
Every application accepted under the Voluntary Separation Program must result in the
elimination of that specific job or an offsetting position of equivalent value elsewhere in the
Establishment. A return on investment is expected.
Eligible employees shall voluntarily terminate their employment with the City of Saint John,
subject to the terms and conditions outlined at “Appendix A:” to this Policy Document.
6.0 RELATED POLICIES AND PROCEDURES
The Voluntary Separation Program shall be administered in accordance with the provisions of
various Collective Agreements, Terms and Conditions of Employment for Management Staff,
and the Shared Risk Pension, as applicable.
The standards and procedures upon which the Voluntary Separation Program is structured are
included in:
Appendix A: 2020 Voluntary Separation Program
Appendix B: Voluntary separation Program: Letter of Application
Policy Amended: June 8, 2020
1.0 Appendix A
2020 VOLUNTARY SEPARATION
PROGRAM
1.0 INTRODUCTION
The Voluntary Separation Program offered by the City of Saint John is as outlined herein.
2.0 ELIGIBILITY AND STANDARDS
i. The Voluntary Separation Program is a voluntary termination program offered to permanent
eligible employees.
ii. Applications for participation in the Voluntary Separation Program will be evaluated against
organizational need, including impact on operations, service delivery, end-run sustainability
and deficit reduction. Final determination shall be made in every case by the City Manager on
recommendation of the Service Area Commissioner and the Director of Human Resources.
iii. Employees who have completed the Voluntary Separation Application Form prior to January
13, 2020 will be eligible, as will any employees who wish to apply after January 13, 2020.
Employees who indicated their intention to terminate their employment by either retirement
or resignation prior to January 13, 2020 and did not fill out the Application Form will not be
eligible to apply under the program.
iv. The Voluntary Separation Program is offered by the City of Saint John solely in accordance
with the terms and conditions outlined herein and does not form part of the terms and
conditions of employment for employees.
v. The City of Saint John reserves the right to refuse the application of this voluntary program to
any individual employee based on the criteria outlined herein. In particular, if it may result in
adverse effects to operations or service.
3.0 APPLICATIONS
i. Eligible employees who wish to be considered for termination of their employment under the
Voluntary Separation Program are required to complete the Letter of Application and return it
to the Director of Human Resources.
ii. The Letter of Application to be used to apply for the Voluntary Separation Program is found at
“Appendix B:” Voluntary Separation Program: Letter of Application.
iii. Applications submitted after February 28, 2020 by members of the Inside Workers or
Management/Professional Employee Groups, will not be considered unless there is a
compelling business case approved by the City Manager.
iv. Members of the Outside Worker Employee Group must submit an application by June 26,
2020 to be considered.
Policy Amended: June 8, 2020
4.0 REVIEW
i. Each termination under this program must be reviewed and recommended by the
Commissioner, indicating that the consequences of acceptance of the application have been
fully identified, considered and approved on operational and service grounds. Particular
emphasis shall be placed on identifying the opportunity to permanently reduce a position(s)
and to therefore permanently reduce employment costs.
5.0 BENEFITS
i. The 2020 Voluntary Separation Program will provide three (3) weeks of current base salary
for every completed year of continuous service to a maximum of six (6) months salary.
a. At the discretion of the City Manager, the maximum may be increased to a maximum
of fourteen (14) months, for officers appointed under Section 71 of the Local
Governance Act, or for senior managers where there is an overwhelming business
case to increase the maximum beyond the standard 6 months salary.
ii. Eligible Employees will be entitled to a payout at the current hourly rate for any remaining
vacation or floating holidays upon the termination date.
iii. Where applicable eligible Employees will be entitled to receive Retirement Pay as prescribed
by the Terms and Conditions of Employment notwithstanding.
iv. Eligible Employees will not have the option to remain on the Group Benefit Plan unless they
are eligible and opt to receive their pension immediately upon termination.
v. All normal provisions of the Shared Risk Pension Plan continue to apply.
6.0 SEPARATION DATE
Management / Professional AND Inside Worker Employees who accept the offer and
voluntarily choose to terminate their employment, subject to approval, must end their
employment on or before September 30, 2020.
Employees in the Outside Worker Employee Group who accept the offer and voluntarily choose to
terminate their employment, subject to approval, must end their employment on or before August 1,
2020.
Policy Amended: June 8, 2020
2.0 Appendix B
2020 Voluntary Separation Program
Letter of Application
Your completed Letter of Application must be received by Human Resources.
I , Employee #:
Holding the role of hereby make application for
the Voluntary Separation Program.
By signing below, I understand I will be considered for a possible Voluntary Separation
Payout should it be determined that my position qualifies. If approved I will receive a payout
equal to 3 weeks for every completed year of service, as of the termination date, to a
maximum of 6 months.
Employee Signature Date
Received by Human Resources: by
.
Date HR Representative
Approval is subject to all requirements of the Voluntary Separation Program being satisfied.
Approval signed on behalf of the City of Saint John
Commissioner Date
City Manager Date