Workforce adjustment resources

Workforce adjustment in the federal government occurs when a Deputy Head decides certain indeterminate positions are no longer needed due to factors like a lack of work, the discontinuation of a function, an employee’s decision not to relocate, or an alternative delivery initiative. This process is often prompted by government cutbacks.

Protections for affected employees are outlined in the Workforce Adjustment Appendix (WFAA), a critical component of Treasury Board and Agency collective agreements. Established after PSAC’s 1991 national strike, the WFAA has been expanded and enhanced through successive rounds of collective bargaining.

The WFAA represents PSAC’s commitment to safeguarding job security and supporting members through changes in the workplace. It acknowledges the importance of stable employment to members’ financial security, work life balance, and mental health.

Your guide to workforce adjustment protections

The federal government’s Refocusing Government Spending Initiative has outlined $15 billion in public service cuts over the next four years, leaving thousands of workers uncertain about their future.

Recent announcements, such as the loss of 3,300 jobs at Immigration, Refugees and Citizenship Canada and the termination of 600 contract workers at the Canada Revenue Agency, are just the beginning. As federal departments move forward with mandated cuts, PSAC is committed to ensuring members have the resources they need to navigate potential workforce adjustment situations.

The Workforce Adjustment Guide is an essential resource to help members understand their rights and protections when changes to the workforce, including layoffs, are being contemplated. It is designed to reduce uncertainty, provide clarity, and empower members to make informed decisions.

Download the guide

The WFA Guide explains the processes that govern workforce adjustment. Whether you are directly affected or want to stay informed, the guide outlines:

Employers and employee responsibilities under the Workforce Adjustment Appendix.
Steps to navigate workforce adjustment scenarios, including layoffs, relocations, and alternative delivery initiatives.
Options available to workers, such as the guarantee of a reasonable job offer, voluntary departure programs, and the alternation process.

Download the guide

Facing workforce adjustment may be one of the most stressful experiences in your career. The WFA Guide equips you with the knowledge to navigate this process while highlighting the protections PSAC has negotiated on your behalf.

If you have questions or need assistance with workforce adjustment, contact your local representative, PSAC regional office or PSAC component for support.

Workforce Adjustment Appendix

Your collective agreement rights and protections during workforce adjustment.

Download here

Frequently asked questions

Without prior consultation, the government has unilaterally announced plans to cut costs across the federal public service as part of the Refocusing Government Spending Initiative.

PSAC is concerned that these spending cuts will not only impact services to Canadians but will result in job cuts. PSAC will be fighting back against these cuts and protecting workers caught in the crossfire.

PSAC collective agreements have protections against job cuts. Employers must ensure that employees are treated equitably and given every opportunity to continue their careers. This section of our website outlines your rights and options as a worker facing these challenges and contains more information about the process.

What is workforce adjustment (WFA)?

Workforce adjustment (WFA) is the term used to describe a process for reducing indeterminate positions in the core federal public service, agencies and separate employers. The process was negotiated by PSAC with your employer as an important job protection measure. Its main purpose is to protect the jobs of our members.

The WFA process is outlined in your collective agreement, usually in the Workforce Adjustment Agreement, an appendix to the collective agreement. For the largest federal bargaining units, the WFAA is found in the following places:

Treasury Board:

Canada Revenue Agency: Appendix C

Canadian Food Inspection Agency: Appendix B (Employment Transition Policy)

Parks Canada: Appendix K

How is WFA defined?

Workforce adjustment is a situation that occurs when a deputy head decides that the services of one or more indeterminate employees will no longer be required beyond a specified date due to one of the following:

A lack of work
The discontinuance of a function
A relocation of a work unit in which the employee does not wish to participate
An alternate delivery initiative, including:
- the service is being transferred to another level of government
- public-private partnerships (P3s)
- contracting out and privatization of your work

Budget cuts most often take the form of a discontinuance of a function, which refers to the elimination of a specific job function or activity within a federal department or agency. Positions associated with the discontinued function may be declared surplus. Employees occupying these positions could be affected by the workforce adjustment process.

What does the WFA Appendix oblige the employer to do?

Departments and organizations must:

Consult with the union as soon as possible.
Maximize employment opportunities for indeterminate employees.
When possible, provide alternative employment opportunities and give employees every “reasonable opportunity” to continue their careers in the public service.
Make sure employees are treated equitably.
Establish joint Work Force Adjustment Committees.
Review the use of private temporary agency personnel, consultants, contractors, term employees and all other non-indeterminate employees and where practicable not re-engage them when it will facilitate the appointment of surplus or laid off persons.
Identify situations where retraining can help workers continue their careers in the public service.
Advise employees in writing about their status and any change to it.
Actively cooperate with the Public Service Commission and other departments/ organizations. Interdepartmental cooperation is essential to maximize employment opportunities, although an organization’s first priority is to find jobs for workers in-house.

Additional employer obligations can be found in Part I of the WFA Appendix.

What does the WFA Appendix oblige workers to do?

In a workforce adjustment situation, it’s important to be proactive and investigate other potential employment opportunities within the federal public service. Once it’s clear that a work force adjustment is inevitable, employees are obliged to:

Actively seek alternate employment in cooperation with their department and the Public Service Commission.
Actively seek out information about their entitlements.
Submit any documents (like résumés) or additional information that could help the employer to find them new work.
Ensure that they can be contacted easily.
Seriously consider training and job opportunities.
Be aware of timelines and proactively consider options when they are required to make decisions.

What does it mean to be an “affected”, “surplus” or “opting” employee?

The WFA Appendices in collective agreements all begin with a general section that includes definitions of these terms and many others used in the WFA process. This is the best reference tool for understanding WFA.

How do I read and understand the WFFA?

The Work Force Adjustment Appendix is organized around key decision points. Some parts may apply to your work force adjustment situation. Other parts might not. It is comprised of a General section that outlines the objectives and definitions followed by these seven Parts and three Annexes:

Part 1 outlines the roles and responsibilities for departments and organizations, Treasury Board Secretariat, the Public Service Commission and employees.
Part 2 outlines the process for departments and organizations to notify the union. It is important that the Union knows when a work force adjustment situation is going to occur so that it can actively represent members impacted by the situation.
Part 3 outlines the process that the Employer must follow when there is a relocation of a work unit. The Employer has unique obligations when a whole work unit is being relocated.
Part 4 outlines the Employer’s obligations to provide retraining opportunities. There are different obligations for affected, surplus and laid-off employees.
Part 5 outlines when the Employer must provide salary protection when employees are appointed to lower-level positions as the result of workforce adjustment.
Part 6 outlines the choices members need to make if they are not provided with a guarantee of a reasonable job offer. This part spells out how the process works in general, the role that the voluntary departure program plays; how the Alternation process works; and the Options that members must choose from, including a one year paid surplus priority (Option A), a lump sum departure payment called a Transition Support Measure (TSM), (often combined with a Public Service Superannuation Pension waiver), or an Education Allowance combined with a TSM (Option C).
Part 7 contains special provisions regarding Alternate Delivery Initiatives (ADI), where work is being devolved or contracted out to an organization outside the federal public service. These are unique obligations that are in most cases separate from those found in Parts 1 to 6, unless otherwise specified. As a result of the collective bargaining process, Part 7 has been removed from the Workforce Adjustment Appendix in the CFIA PSAC collective agreement.
Annex A contains a Statement of Pension Principles that applies to Part 7 Alternate Delivery Initiatives.
Annex B include a chart outlining the number of weeks of Transition Support Measure available to opting employees based on years of service who choose Option B or C.
Annex C describes some of the roles of the Public Service Commission with respect to the Work Force Adjustment Appendix and the Public Service Employment Act.

Download the Key Elements of the PSAC Workforce Adjustment Appendix flowchart.

How do I know if I am subject to WFA?

Indeterminate employees must be notified in writing by their department or organization that they will be impacted by a work force adjustment.

The Deputy Head must notify you in writing that your services may or will no longer be required, depending on the situation. The notice must also include whether you:

Are officially “affected” and if a process for determining who will be laid off is required,
Will receive a guarantee of a reasonable job offer, and
Have access to the opting provisions in the WFA Appendix.

Depending on the situation and if the jobs being eliminated are unique, you may be notified that your job will be eliminated and that you will have access to the opting provision of the WFA Appendix at the same time the notice is given.

On the other hand, if you essentially perform the same functions as others, a process for determining who will be retained and who will be laid off must be administered. In this instance affected members’ jobs will be retained or eliminated subsequent to that process.

During the Harper Conservative government's Deficit Reduction Action Plan (DRAP) from 2012 to 2015, the Public Service Commission implemented a flawed system called the Selection of Employees for Retention or Layoff (SERLO) to determine which employees would be retained or laid off. PSAC continues to push the government to implement a fairer system.

Where applicable, the notification should also provide the information relative to the employee’s possible layoff date.

Other important notices must also be issued during the process. These notices include surplus letters, job offers, opting decisions, requests for résumés and other personal information, as well as job interview notices. Many of these will specify timelines for responding or making a choice.

It is very important for you to respond to the notices by the deadlines provided.

What do I do if I hear about a WFA or I am notified of one?

When you are first notified about a workforce adjustment situation, or even if you believe you may be subject to one in the near future, please follow these general guidelines:

Don’t trust hearsay propagated by individual managers and supervisors.
Keep local and national union leadership and PSAC regional staff advised about what you are hearing. This way your union may raise the issues at a Union Management Committee meeting or a standing Joint Workforce Adjustment Committee meeting, to verify the claims.
Do not to make any rash or quick decisions. Instead become informed and ask questions about your particular situation and your options from both the union and the employer.
After becoming informed, seriously consider all the options available to you with particular emphasis on what the best option is for you, given the situation. The WFA Appendix requires you to make difficult choices, and the choice that each must make depends on your individual circumstances.
Ensure that you respond to requests from the employer within the specified deadlines. Understandably, you may just want the whole situation to disappear because the decisions you are forced to make are so difficult. Unfortunately, not doing anything will make the situation worse and potentially force you to accept an option that isn’t the best one for you.
If you are deemed surplus and your choice is to remain employed by the federal government, you must actively seek alternate federal government employment and seriously consider all job offers. Be assertive in questioning your departmental human resources advisors about what they are doing to help you find new employment in another department or agency.
Ensure you can be easily contacted by both the union and your employer.
Union protections and processes are the most important resource assisting you through the job loss or transition process and you have the right to representation throughout, from before the process starts until after it ends.

What does WFA mean for term employees?

Term and casual employees are not covered by the Workforce Adjustment Appendix. Term employees are entitled to a 30-day written notice period if their term isn't renewed or is terminated early.

Section 51 of the Public Service Employment Act and the Treasury Board’s Directive on Term Employment specify that term employees who have been employed in the same department for a period of three continuous years, without a break of 60 consecutive calendar days or more, must be appointed as an indeterminate employee at the level of their substantive position. Unfortunately, when a WFA is called departments can invoke an exception that allows them to stop the accumulation of service toward the required three years to become indeterminate.

If your term rollover to indeterminate is paused due to WFA, it should be credited when the workforce adjustment is over if you are still on strength.

Stay updated and involved: make sure your contact information is up to date and sign up to receive updates as we move forward.

Common terms used in the Workforce Adjustment Appendix

The Workforce Adjustment Appendix (WFAA) is a section within PSAC Treasury Board and Agency collective agreements that outlines the rights, obligations, and processes for managing situations where employees’ services are no longer required due to organizational changes, including government downsizing or cutbacks.

This glossary defines important terms and obligations found in the Workforce Adjustment Appendix. Some are found in each collective agreement; some are found elsewhere.

For more information about your rights at work during a workforce adjustment situation, visit psacunion.ca/workforce-adjustment.

Accelerated lay-off: occurs when a surplus employee makes a request to the deputy head, in writing, to be laid-off at an earlier date than that originally scheduled, and the Deputy Head agrees. Lay-off entitlements begin on the actual date of lay-off.

Affected employee: an indeterminate employee who has been informed in writing that their services may no longer be required because of a workforce adjustment situation.

Alternation: occurs when an opting employee, or an employee who is surplus as a result of opting for a 12 month surplus priority period in which to secure a reasonable job offer as per 6.4.1(a), who wishes to remain in the core public Administration exchanges positions with a non-affected employee (the alternate) willing to leave the core public administration with a transition support measure or with an education allowance.

Alternate Delivery Initiative: the transfer of any work, undertaking or business of the core public administration to any body or corporation that is a separate agency or that is outside the core public administration.

Appointing department or organization: a department or organization which has agreed to appoint or consider for appointment (either immediately or after retraining) of a surplus or laid-off person.

Core public administration: that part of the public service in or under any department or organization, or other portion of the federal public administration specified in Schedules I and IV of the Financial Administration Act (FAA) for which the Public Service Commission has the sole authority to appoint.

Deputy Head: has the same meaning as in the definition of “deputy head” set out in section 2 of the Public Service Employment Act,and also means their official designate.

Education Allowance: one of the options provided to an indeterminate employee affected by workforce adjustment for whom the deputy head cannot guarantee a reasonable job offer. The education allowance is a cash payment equivalent to the transition support measure (see Annex B), plus a reimbursement of tuition from a recognized learning institution, as well as book and mandatory equipment costs, up to a maximum of seventeen thousand dollars ($17,000).

Essential Qualifications: qualifications that are necessary for the work to be performed and that must be met in order for a person to be appointed. Essential qualifications are still determined by the Employer but are differentiated from Asset qualifications which are qualifications, other than official language requirements, that are not essential to perform the work, but that would benefit the organization or enhance the work to be performed.

Guarantee of a Reasonable Job Offer: a guarantee of an offer of indeterminate employment within the core public administration provided by the deputy head to an indeterminate employee who is affected by workforce adjustment. Deputy heads will be expected to provide a guarantee of a reasonable job offer to those affected employees for whom they know or can predict that employment will be available in the core public administration. Surplus employees in receipt of this guarantee do not have access to the options available in Part VI of the WFAA.

Home department or organization: a department or organization declaring an individual employee surplus.

Joint Workforce Adjustment Committee: a joint committee that must be created at all necessary levels by departments and organizations with their union counterparts to discuss all aspects of the workforce adjustment process being undertaken, including alternation requests from other departments and organizations.

Laid-off person: a person who has been laid-off pursuant to subsection 64(1) of the Public Service Employment Act (PSEA) and who still retains an appointment priority under subsection 41(4) and section 64 of the PSEA.

Lay-off notice: a written notice of lay-off to be given to a surplus employee at least one month before the scheduled lay-off date. This period is included in the surplus period.

Lay-off priority: a person who has been laid-off is entitled to a priority, in accordance with subsection 41(5) of the Public Service Employment Act with respect to any position to which the Public Service Commission is satisfied that the person meets the essential qualifications of the position. The period of entitlement to this priority is one year as set out in Section 11 of the Public Service Employment Regulations. This priority period is unpaid.

Opting Employee: an indeterminate employee whose services will no longer be required because of a workforce adjustment situation, who has not received a guarantee of a reasonable job offer from the deputy head and who has 120 days to consider the options in section 6.4 of the WFAA.

Organization: any Board, Agency, Commission or other body, specified in Schedules I and IV of the Financial Administration Act (FAA) that is not a department.

Pay: has the same meaning as “rate of pay” in the Collective Agreement.

Priority System: the system defined by the Public Service Commission under the authority granted to the Commission by the Public Service Employment Act and Regulations that establishes the order of staffing for individuals who want to be employed or re-employed in the Core Public Service. Agencies will have their own priority systems modelled after that outlined by the Commission. Surplus and laid off employees are subject to priority staffing.

Priority Administrative Directive and Priority Information Management System (PIMS): the Priority Administration Directive is a device implemented by the Public Service Commission to ensure persons with a priority entitlement are considered by organizations. The Directive specifies the roles and responsibilities of the PSC, organizations and persons with a priority entitlement in the administration of priority entitlements; the measures organizations must take in order to ensure priority entitlements are respected; PSC oversight activities; and measures that may be taken by the PSC as a result of non-compliance with this Directive.

The PSC Priority Entitlements Program uses an automated system called the Priority Information Management System (PIMS) to register, identify job opportunities, track, and monitor all persons with a priority entitlement. The PSC also monitors the results of organizations’ assessment of persons with a priority entitlement and adherence to the requirements of the Directive and guidance materials related to priority entitlements.

PSC Priority Entitlement Consultant: PSC Priority Entitlements Consultants (PEC) are PSC staff available to answer workers’ questions regarding Priority Entitlements and the use of the Priority Portal. PECs can answer questions on the appropriate use of skill codes and job types, groups and levels for referrals, entitlements and the feedback process. Persons with priority entitlements can reach a Priority Entitlements Consultant by telephone, via the Priority Entitlements Voicemail at 1-855-235-3113 or local to the NCR at 819-420-6931 or by e-mailing their enquiry to cfp.adminpriorite-priorityadmin.psc@cfp-psc.gc.ca.

Reasonable Job Offer: an offer of indeterminate employment within the core public administration, normally at an equivalent level, but which could include lower levels. Surplus employees must be both trainable and mobile. Where practicable, a reasonable job offer shall be within the employee’s headquarters as defined in the Travel Directive. In alternative delivery situations, a reasonable offer is one that meets the criteria set out under Type 1 and Type 2 in Part VII of this Appendix. A reasonable job offer is also an offer from a FAA Schedule V employer, providing that:

(a) The appointment is at a rate of pay and an attainable salary maximum not less than the employee’s current salary and attainable maximum that would be in effect on the date of offer.

(b) It is a seamless transfer of all employee benefits including a recognition of years of service for the definition of continuous employment and accrual of benefits, including the transfer of sick leave credits, severance pay and accumulated vacation leave credits.

Reinstatement priority: an entitlement provided to surplus employees and laid-off persons who are appointed or deployed to a position in the core public administration at a lower level. As per section 10 of the Public Service Employment Regulations, the entitlement lasts for one year.

Relocation: the authorized geographic move of a surplus employee or laid-off person from one place of duty to another place of duty located beyond what, according to local custom, is a normal commuting distance.

Relocation of a work unit: the authorized move of a work unit of any size to a place of duty located beyond what, according to local custom, is normal commuting distance from the former work location and from the employee’s current residence.

Retraining: on-the-job training or other training intended to enable affected employees, surplus employees and laid-off persons to qualify for known or anticipated vacancies within the core public administration or the agency.

SERLO Process (Selection of Employees for Retention and Lay-off): The Public Service Employment Act gives the Public Service Commission the authority to create regulations that determine the process for laying people off. SERLO is the process the Employer has used in the past and currently favours for deciding which employees will be retained and which employees will be made opting. The process is outlined in the Public Service Commission’s Guide on the Selection of Employees for Retention and Lay-off.

During the collective bargaining round that concluded in 2023 PSAC negotiated a Letter of Understanding with Treasury Board that binds the parties to influence the Public Service Commission to consider a seniority process instead. PSAC subsequently provided the PSC with a proposal for “Equitable Seniority” as an alternative to the SERLO process, which lacks transparency and equity. In September 2024, the PSC instead introduced changes to the regulations that entrenched the SERLO process into regulation.

Surplus Employee: an indeterminate employee who has been formally declared surplus, in writing, by their deputy head.

Surplus priority: an entitlement for a priority in appointment accorded in accordance with section 5 of the Public Service Employment Regulations and pursuant to section 40 of the Public Service Employment Act. This entitlement is provided to surplus employees to be appointed in priority to another position in the core public administration for which they meet the essential requirements. In a WFA situation, employees are entitled to a surplus priority when they receive a guarantee of a reasonable job offer which is unlimited or they are made opting and they choose Option A which time limited for up to one year.

Surplus Status: there are two types of surplus status. Indefinite surplus status means that an indeterminate employee has surplus status from the date they are declared surplus until the date of lay-off, until they are indeterminately appointed to another position or until the person resigns depending on the type of surplus status which applies. Time-limited surplus status occurs when an employee chooses Option A in 6.4.1 the WFAA. The employee then has surplus status until they find another position or until the surplus status granted by their choice ends and that status is rescinded (most often a year from when the employee officially made the choice).

Transition Support Measure (TSM): one of the options provided to an opting employee for whom the Deputy Head cannot guarantee a reasonable job offer. The transition support measure is a cash payment based on the employee’s years of continuous employment, as per Annex B of the WFAA.

Twelve (12) month surplus priority period in which to secure a reasonable job offer: one of the options provided to an opting employee for whom the Deputy Head cannot guarantee a reasonable job offer.

Workforce adjustment: a situation that occurs when a Deputy Head decides that the services of one or more indeterminate employees will no longer be required beyond a specified date because of a lack of work, the discontinuance of a function, a relocation in which the employee does not wish to participate or an alternative delivery initiative.

Flowchart

A step-by-step guide to understanding workforce adjustment in the federal public.