SNL2018 CHAPTER S-5.2 - SALARY RESTRAINT AND EXTINGUISHMENT OF SEVERANCE PAY ACT

SNL2018 CHAPTER S-5.2 SALARY RESTRAINT AND EXTINGUISHMENT OF SEVERANCE PAY ACT Amended: 2022 cP-30.1 s63 CHAPTER S-5.2 AN ACT RESPECTING THE RESTRAINT OF SALARY AND THE EXTINGUISHMENT OF SEVERANCE PAY FOR NON-REPRESENTED PUBLIC SECTOR EMPLOYEES AND STATUTORY OFFICERS OF THE PROVINCE (Assented to May 31, 2018) Analysis 1. Short title 2. Definitions 3. Application of Act 4. Crown bound PART I SALARY RESTRAINT MEASURES 5. No increase in pay scales 6. No change on renewal 7. Step progressions PART II SEVERANCE PAY 8. Severance pay 9. Severance pay-qualifying employees 10. Request for severance pay payment deferral 11. Payment to estate 12. Non-qualifying employees 13. Severance pay extinguished 14. Rights unaffected PART III GENERAL 15. Powers and duties of Treasury Board 16. Powers and duties of House of Assembly Management Commission 17. Conflict 18. No future compensation 19. No liability 20. Schedule Schedule Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows: Short title 1. This Act may be cited as the Salary Restraint and Extinguishment of Severance Pay Act . 2018 cS-5.2 s1 Back to Top Definitions 2. In this Act (a) "base salary" means the amount of remuneration paid in a year to a non-represented public sector employee or statutory officer for the performance of employment duties but does not include overtime pay, bonuses and shift premiums ; (b) "clerk" means the Clerk of the House of Assembly; (c) "compensation" means any consideration or remuneration, regardless of its nature or form, including base salary, retainers, benefits, bonuses, allowances, honorariums, travelling and living expenses paid, payable or provided, directly or indirectly, to or for the benefit of a person who performs duties and functions that entitle the person to be paid; (d) "compensation plan" means provisions, however established, for the determination and administration of compensation, and includes provisions established bilaterally between a public sector employer and a statutory officer or a non-represented public sector employee, unilaterally by the public sector employer or by or under any Act; (e) "employee of a public sector employer" means (i) an employee of the executive branch, (ii) an employee of the legislative branch, and (iii) an employee of a public body; and (f) "executive branch" means a department created under the Executive Council Act or a branch of the executive government of the province; (g) "government" means (i) the executive branch, and (ii) the legislative branch; (h) "House of Assembly Management Commission" means the commission continued under section 18 of the House of Assembly Accountability, Integrity and Administration Act ; (i) "House of Assembly service" means House of Assembly service referred to in section 25 of the House of Assembly Accountability, Integrity and Administration Act ; (j) "legislative branch" means the House of Assembly and statutory offices; (k) "non-represented public sector employee" means an employee of a public sector employer who is not a represented public sector employee on May 31, 2018 or at any time during the salary restraint period; (l) "public body" means an entity listed in the Schedule; (m) "public sector employer" means (i) government, and (ii) a public body; (n) "public sector employer severance pay policy" means a policy established by a public sector employer that authorizes the payment of an amount, other than payment in lieu of notice, to be paid to a non-represented public sector employee on the date the non-represented public sector employee resigns, retires or is terminated from his or her employment; (o) "qualifying employee" means a non-represented public sector employee or statutory officer who has, as of May 31, 2018, one or more complete years of continuous service with a public sector employer that has adopted a severance pay policy as part of its compensation plan before the coming into force of this Act; (p) "represented public sector employee" means a person employed with a public sector employer in a position represented by a bargaining agent certified or recognized under an Act of the province; (q) "salary restraint period" means the period beginning on June 1, 2018 and ending on March 31, 2020; (r) "severance pay" means an amount payable to a qualifying employee and calculated in accordance with section 8; (s) "severance pay policy" means (i) the Treasury Board Severance Pay Policy, or (ii) a public sector employer severance pay policy; (t) "speaker" means the Speaker of the House of Assembly; (u) "statutory office" means the office of a statutory officer; (v) "statutory officer" means (i) the Information and Privacy Commissioner, (ii) the Auditor General, (iii) the Child and Youth Advocate, (iv) the Chief Electoral Officer, (v) the Citizens' Representative, (vi) the Commissioner for Legislative Standards, and (vii) the Seniors' Advocate; (w) "step progression" means an increase in base salary determined in accordance with a pay scale and based on the anniversary of the date a non-represented public sector employee or statutory officer commenced employment with the public sector employer; (x) "Treasury Board Severance Pay Policy" means a policy established by Treasury Board that authorizes the payment of an amount, other than payment in lieu of notice, to be paid to a non-represented public sector employee or statutory officer on the date the non-represented public sector employee or statutory officer resigns, retires or is terminated from his or her employment; and (y) "year" means a calendar year. 2018 cS-5.2 s2 Back to Top Application of Act 3. (1) This Act applies to (a) public sector employers; (b) non-represented public sector employees; and (c) statutory officers. (2) This Act does not apply to (a) represented public sector employees; (b) a judge appointed under the Provincial Court Act, 1991 ; (c) a Member of the House of Assembly; and (d) political support staff whose base salary is determined in accordance with the classification chart for political support staff, except as provided in section 14. 2018 cS-5.2 s3 Back to Top Crown bound 4. This Act binds the Crown. 2018 cS-5.2 s4 PART I SALARY RESTRAINT MEASURES Back to Top No increase in pay scales 5. Notwithstanding the terms and conditions of employment or a compensation plan, a public sector employer shall not increase the base salary amounts in its pay scales for non-represented public sector employees and statutory officers during the salary restraint period. 2018 cS-5.2 s5 Back to Top No change on renewal 6. (1) A public sector employer shall not increase the compensation payable to a non-represented public sector employee or statutory officer who renews his or her employment contract or is reappointed during the salary restraint period. (2) Where a non-represented public sector employee or statutory officer (a) remains employed in the same position but executes a new employment contract, the new contract is considered to be a renewal for the purpose of this section; or (b) remains in office but has a new appointment to the same office, the new appointment is considered to be a reappointment for the purpose of this section. 2018 cS-5.2 s6 Back to Top Step progressions 7. Nothing in sections 5 and 6 affect a non-represented public sector employee's or statutory officer's entitlement to any step progressions that form part of his or her compensation plan. 2018 cS-5.2 s7 PART II SEVERANCE PAY Back to Top Severance pay 8. (1) Severance pay shall be payable to a qualifying employee of a public sector employer that has adopted the Treasury Board Severance Pay Policy and shall be calculated by multiplying the qualifying employee's number of complete years of continuous service by his or her weekly base salary as of May 31, 2018 to a maximum of 20 weeks base salary. (2) Severance pay shall be payable to a qualifying employee of a public sector employer that has adopted a public sector employer severance pay policy and shall be calculated in accordance with the public sector employer severance pay policy. 2018 cS-5.2 s8 Back to Top Severance pay-qualifying employees 9. (1) Severance pay payable to a qualifying employee shall be fixed as of May 31, 2018 and the qualifying employee shall not accrue any further entitlement to severance pay. (2) Severance pay payable to a qualifying employee shall be paid in a lump sum payment on the earlier of (a) the date the qualifying employee resigns, retires or is terminated from his or her employment; or (b) March 31, 2019. 2018 cS-5.2 s9 Back to Top Request for severance pay payment deferral 10. (1) Notwithstanding subsection 9(2), severance pay payable to a qualifying employee under section 9 may be deferred where a qualifying employee submits a written request to the public sector employer in the form determined by the public sector employer on or before December 31, 2018. (2) Where a qualifying employee defers payment of his or her severance pay under subsection (1), the qualifying employee may request payment of his or her severance pay at any time by submitting a written request to the public sector employer in the form determined by the public sector employer. (3) A qualifying employee who submits a request under subsection (2) shall be paid his or her severance pay not later than June 30 of the year following the year in which the request was submitted. (4) Payment of severance pay deferred under subsection (1) shall be paid to the qualifying employee no later than the date the qualifying employee resigns, retires or is terminated from his or her employment. (5) Where a qualifying employee defers payment of his or her severance pay under subsection (1), interest shall not accrue on the severance pay or be payable to the qualifying employee when he or she receives his or her severance pay. 2018 cS-5.2 s10 Back to Top Payment to estate 11. (1) Where a qualifying employee of a public sector employer that has adopted the Treasury Board Severance Pay Policy dies before receiving his or her severance pay under this Act, the qualifying employee's severance pay shall be paid to the qualifying employee's estate. (2) Where a qualifying employee of a public sector employer that has adopted a public sector employer severance pay policy dies before receiving his or her severance pay under this Act, the qualifying employee's severance pay shall be paid (a) in accordance with the public sector employer severance pay policy; or (b) to the qualifying employee's estate, where the public sector employer severance pay policy does not have a provision for the payment of severance pay on the death of a qualifying employee. 2018 cS-5.2 s11 Back to Top Non-qualifying employees 12. A non-represented public sector employee or a statutory officer who is not a qualifying employee on May 31, 2018 shall not (a) accrue entitlement to severance pay; or (b) receive severance pay at any time. 2018 cS-5.2 s12 Back to Top Severance pay extinguished 13. (1) Upon the coming into force of this Act, (a) all rights of non-represented public sector employees and statutory officers to accrue severance pay are extinguished; (b) all rights of non-represented public sector employees and statutory officers to receive severance pay are extinguished except in accordance with this Part; and (c) the terms and conditions of employment or a compensation plan shall not provide for the accrual, entitlement or payment of severance pay to non-represented public sector employees and statutory officers. (2) Subsection (1) applies regardless of whether a non-represented public sector employee or statutory officer was a qualifying employee on May 31, 2018. 2018 cS-5.2 s13 Back to Top Rights unaffected 14. Where before the coming into force of this Act, (a) an individual is entitled to a payment under a severance pay policy; (b) that payment was deferred; and (c) the individual has not received that payment, his or her right to receive that payment shall be unaffected by this Act and that payment shall be paid in accordance with subsection 9(2), section 10 or section 11. 2018 cS-5.2 s14 PART III GENERAL Back to Top Powers and duties of Treasury Board 15. (1) Treasury Board may exercise the powers and shall perform the duties in relation to this Act that are necessary to enable it to determine whether the executive branch, a public body or a non-represented employee of the executive branch or a public body is complying with this Act. (2) Treasury Board may require the executive branch, a public body or a non-represented employee of the executive branch or a public body to provide information and documentation that Treasury Board considers necessary to enable it to determine compliance with this Act. (3) Where Treasury Board determines that the executive branch or a public body is not complying with this Act, it may issue a directive that it considers appropriate to ensure compliance, including a directive (a) requiring compliance with this Act; or (b) prohibiting the executive branch or a public body from implementing an increase in base salary amounts in its pay scales that do not comply with this Act. 2018 cS-5.2 s15 Back to Top Powers and duties of House of Assembly Management Commission 16. (1) The House of Assembly Management Commission may exercise the powers and shall perform the duties in relation to this Act that are necessary to enable it to determine whether the legislative branch, the House of Assembly service, a statutory officer or an employee of a statutory office is complying with this Act. (2) The House of Assembly Management Commission may require the legislative branch, the House of Assembly service, a statutory officer or an employee of a statutory office to provide information and documentation that the House of Assembly Management Commission considers necessary to enable it to determine compliance with this Act. (3) Where the House of Assembly Management Commission determines that the legislative branch is not complying with this Act, it may issue a directive that it considers appropriate to ensure compliance, including a directive (a) requiring compliance with this Act; or (b) prohibiting the legislative branch from implementing an increase in base salary amounts in its pay scales that do not comply with this Act. 2018 cS-5.2 s16 Back to Top Conflict 17. (1) Where this Act conflicts with another Act or regulation, except the Financial Administration Act , this Act prevails. (2) This Act prevails over any term and condition of employment or provision of a compensation plan, whether established before or after the coming into force of this Act, and where there is a conflict between this Act and those terms and conditions or compensation plan, those provisions and that compensation plan are invalid to the extent of the conflict. 2018 cS-5.2 s17 Back to Top No future compensation 18. After May 31, 2018 a compensation plan shall not include a severance pay policy, provide for severance pay or an increase in compensation for a non-represented public sector employee or statutory officer as an adjustment to provide for severance pay or base salary increases that he or she did not or will not receive as a result of the restraint measures in t his Act. 2018 cS-5.2 s18 Back to Top No liability 19. (1) A public sector employer, a minister, employee or agent of a public sector employer, a statutory officer, the speaker or the clerk is not liable for a cause of action arising from, resulting from or incidental to the operation of this Act or resulting from or incidental to the extinguishment of a right to or eligibility for an increase in base salary or an accrual or entitlement to severance pay which may have existed or accrued before the coming into force of this Act. (2) An action or proceeding does not lie or shall not be instituted or continued against a public sector employer, a minister, employee or agent of a public sector employer, a statutory officer, the speaker or the clerk based on a cause of action arising from, resulting from or incidental to the operation of this Act or resulting from or incidental to the extinguishment of a right to or eligibility for an increase in base salary or an accrual or entitlement to severance pay which may have existed or accrued before the coming into force of this Act. 2018 cS-5.2 s19 Back to Top Schedule 20. (1) When the House of Assembly is not in session, the Lieutenant-Governor in Council may, by order, amend the Schedule, but the order shall not continue in force beyond the end of the next sitting of the House of Assembly. (2) An order made under this section is subordinate legislation for the purpose of the Statutes and Subordinate Legislation Act. 2018 cS-5.2 s20 Back to Top Schedule Board of Commissioners of Public Utilities C.A. Pippy Park Commission College of the North Atlantic Conseil scolaire fr ancophone provincial de Terre-Neuve-et-Labrador Human Rights Commission Independent Appointments Commission Labour Relations Board Marble Mountain Development Corporation Mental Health Review Board Multi-Materials Stewardship Board Municipal Assessment Agency Newfoundland and Labrador English School District Newfoundland and Labrador Film Development Corporation Newfoundland and Labrador Housing Corporation Newfoundland and Labrador Liquor Corporation Newfoundland and Labrador Medical Care Plan NL 911 Bureau Inc. NL Innovation Council Provincial Advisory Council on the Status of Women Provincial Health Authority Provincial Information and Library Resources Board Public Procurement Agency Public Service Commission Royal Newfoundland Constabulary Student Loan Corporation of Newfoundland and Labrador The Rooms Corporation Workplace Health, Safety and Compensation Review Division Workplace NL 2018 cS-5.2 ; 2022 cP-30.1 s63