Question Period Note: Workforce Adjustments in the Public Service

About

Reference number:
TBS-2025-QP-12-00010
Date received:
Dec 10, 2025
Organization:
Treasury Board of Canada Secretariat
Name of Minister:
Ali, Shafqat (Hon.)
Title of Minister:
President of the Treasury Board

Issue/Question:

Is the government laying off employees across the public service?

Suggested Response:

• When programs, activities and budgets change, departments may need to reduce their workforce.
• The Government is committed to ensuring that employees affected by workforce adjustment are treated fairly in accordance with their collective agreements, terms and conditions of employment, and the Values and Ethics Code for the Public Sector.
• Through workforce adjustment or career transition provisions, permanent employees whose jobs are no longer required will either be provided the possibility of remaining in the public service by moving to another job or to pursue a range of supports, should they have to exit the public service.

Background:

When departments face budget reductions and must reduce their expenditures, they will generally complete a human resources analysis; and consider ending non-permanent staffing, such as contracts, term employees, casual workers and students. As needed, departments may consider full-time permanent employees.
The Work Force Adjustment Directive and Workforce Appendices which form part of collective agreements outline the provisions for workforce adjustment for indeterminate employees.
Executives are subject to the Career Transition appendices E, F and G of the Directive on Terms and Conditions of Employment for Executives, which facilitate the career transition of executives in a workforce reduction situation.
The Workforce Adjustment (WFA) provisions can be used when:
o the services of one or more indeterminate employees will no longer be required beyond a specified date due to a lack of work;
o there is a discontinuance of a function;
o a relocation of a work unit in which the employee does not wish to participate; or
o an alternative delivery initiative.
For executives, Career Transition provisions can be used when there is a:
o lack of work;
discontinuance of a function, or,
o transfer of work or a function outside those portions of the federal public administration named in Schedule I, IV or V to the Financial Administration Act.
The aim is to ensure that indeterminate employees whose services are no longer required because of a workforce adjustment situation are, wherever possible, provided with alternative employment opportunities.
The department will confirm to an employee if they will:
o receive a “guaranteed reasonable job offer” at the same level and skill set within the core public administration OR
o be provided four options:
 Option A – 12-month surplus priority entitlement – they will be referred to public service jobs
 Option B – Transition Support Measure (TSM) – lump sum payment in exchange for resignation
 Option C (i) – TSM and an Education Allowance
 Option C (ii) – TSM, an Education Allowance and up to 2-year leave without pay

For executives, the department will plan and leverage mobility provisions (e.g., agreement to being deployed is a condition of their employment). And where a career transition situation exists, the department notifies the executive of their timelines and 2 options:
 Option 1 - Leave the core public administration and seek employment elsewhere; or,
 Option 2 - Seek continuing employment in the core public administration.

Additional Information:

None