PSAC and Treasury Board have reached an agreement to lift the moratorium on the automatic cash-out of vacation and compensatory leave for the PA, TC, EB, SV and FB groups.

In previous years, in order to address the shortcomings of the Phoenix pay system and allow compensation advisors to focus on fixing outstanding pay issues, PSAC and Treasury Board had agreed to suspend the automatic cash-out of vacation and compensatory leave permitted under PSAC’s collective agreement until March 31, 2022.

Under most of PSAC collective agreements, leave that is earned in a fiscal year and remains outstanding on September 30 of the following fiscal year is subject to an automatic cash-out provision.

Payment of outstanding vacation and compensatory leave credits will resume on March 31, 2022. However, in order to return to the carry-over levels allowed in the collective agreements, PSAC and Treasury Board have agreed on a transition process.

This means that each year, for a five-year period, 20 per cent of the vacation and compensatory leave balances above the annual carry-over limit will be cashed out.

Members with a balance above allowable limits remaining on March 31, 2026, will receive a cash-out for the portion in excess, in its entirety, with respect to the applicable collective agreement provisions.

PSAC acknowledges that many members prefer paid time off over a cash payment in lieu. Members will continue to be allowed to use their vacation and compensatory time or to request a cash-out of their vacation or compensatory leave balances during the year, in the amounts and manner described in their collective agreement.

If a member is having ongoing issues with their leave balance, for example in situations regarding a dispute about the balance due to the Phoenix pay system or a pending transfer situation, in consultation with the employee, the mandatory leave cash-out can be paused by the employer.

For more information on the automatic leave cash-out, members can consult the Memorandum of Understanding.