8.01

An employee who was appointed before the 1st day of January, 1970, and who ceases to be an employee, is entitled to be paid an amount in respect of the employee’s accumulated attendance credits for continuous service up to and including the 30th day of April, 1979, in an amount computed by multiplying one-half (1/2) of the number of days of the employee’s accumulated attendance credits remaining at the date the employee ceases to be an employee by the employee’s annual salary at the date the employee ceases to be an employee and dividing the product by two hundred and sixty-one (261). For the period from May 1, 1979, the benefits described under Section 8.04 shall apply.

8.02

Notwithstanding Section 8.01, an employee who was appointed on or after the 1st day of October, 1965, and before the 1st day of January, 1970, who ceases to be an employee because of,

(a)    death,

(b)    retirement pursuant to total and permanent disability that entitles them to a pension or payment under the Public Service Pension Plan,
or

(c)    dismissal for certain reasons under Section 39 of the Public Service of Ontario Act, 2006,

is entitled to receive for continuous service up to and including the 30th day of April, 1979,

    (i)    severance pay equal to one-half (1/2) week of salary for each year of continuous service before the 1st day of January, 1970, and one week of salary for each year of continuous service from and including the 1st day of January, 1970, or

    (ii)    the amount in respect of the employee’s accumulated attendance credits computed in accordance with Section 8.01 of this Article,

whichever is the greater, but the employee is not entitled to receive both of those benefits. For the period from May 1, 1979, benefits described under Section 8.04 shall apply.

8.03

An employee who is appointed on or after the 1st day of January, 1970, is entitled to severance pay for each year of continuous service up to and including the 30th day of April, 1979,

(a)    where the employee has completed one (1) year of continuous service and ceases to be an employee because of,

    (i)    death,
    (ii)    retirement pursuant to total and permanent disability that entitles them to a pension or payment under the Public Service Pension Plan, or
    (iii)    dismissal for certain reasons under Section 39 of the Public Service of Ontario Act, 2006,

    in an amount equal to one (1) week of salary for each year of continuous service, or

(b)    where the employee has completed five (5) years of continuous service and ceases to be an employee for any reason other than

    (i)    dismissal under Section 34 of the Public Service of Ontario Act, 2006, or
    (ii)    abandonment of position under Section 42 of the Public Service of Ontario Act, 2006,

    in an amount equal to one (1) week of salary for each year of continuous service.

8.04.01

An employee appointed to the regular service between May 1, 1979 and December 31, 2008 shall be entitled to the benefits described under this Article.

An employee,

(a)    who has completed a minimum of one (1) year of continuous service and who ceases to be an employee because of,

    (i)    death,
    (ii)    retirement pursuant to total and permanent disability that entitles them to a pension or payment under the Public Service Pension Plan, or
    (iii)    dismissal for certain reasons under Section 39 of the Public Service of Ontario Act, 2006; or

(b)    who has completed a minimum of five (5) years of continuous service and who ceases to be an employee for any other reason than,

    (i)    dismissal under Section 34 of the Public Service of Ontario Act, 2006, or
    (ii)    abandonment of position under Section 42 of the Public Service of Ontario Act, 2006,

is entitled to severance pay equal to one (1) week of salary for each year of continuous service commencing from May 1, 1979.

Notwithstanding Article 8.04.01, an employee who voluntarily resigns is only entitled to termination payments for service accrued up to December 31, 2008.

8.04.02

An employee appointed to the regular service on or after January 1, 2009 shall be entitled to the benefits described under this Article.

An employee,

(a)    who has completed a minimum of one (1) year of continuous service and who ceases to be an employee because of,

    (i)    death,
    (ii)    retirement pursuant to total and permanent disability that entitles them to a pension or payment under the Public Service Pension Plan, or
    (iii)    dismissal for certain reasons under Section 39 of the Public Service of Ontario Act, 2006; or

(b)    who has completed a minimum of five (5) years of continuous service and who ceases to be an employee for any other reason than,

    (i)    dismissal under Section 34 of the Public Service of Ontario Act, 2006,
    (ii)    abandonment of position under Section 42 of the Public Service of Ontario Act, 2006, or
    (iii)    a voluntary resignation under Section 41 of the Public Service of Ontario Act, 2006. A voluntary resignation does not include a retirement if the employee ceases employment and is entitled to a pension, other than a disability pension, under the Public Service Pension Plan immediately after retiring,

is entitled to severance pay equal to one (1) week of salary for each year of continuous service commencing from May 1, 1979.

8.04.03

Effective December 31, 2016, employees shall no longer accrue termination pay entitlement upon retirement. Termination pay accrued up to and including December 31, 2016 shall be payable at the wage rates applicable on December 31, 2016.

8.04.04

Employees appointed on or after January 1, 2017 will not be entitled to termination pay.

8.05

(a)    The total of the amount paid in respect of accumulated attendance credits, severance pay, or both, to an employee appointed to the regular service on or before December 31, 2008 shall not exceed one-half (26 weeks) of the annual salary at the date when the employee ceased to be an employee pursuant to Article 8.04.01(a).

(b)    The total of the amount paid in respect of accumulated attendance credits, severance pay, or both, to an employee appointed to the regular service on or after January 1, 2009 shall not exceed one-quarter (13 weeks) of the annual salary at the date when the employee ceased to be an employee.

(c)    The calculation related to accumulated attendance credits or severance pay shall be based on the annual salary the employee was receiving when the employee ceases to be an employee.

(d)    Where a computation for severance pay involves part of a year, the computation of that part shall be made on a monthly basis, and

    (i)    any part of a month that is less than fifteen (15) days shall be disregarded
    (ii)    any part of a month that is fifteen (15) days or more shall be deemed to be a month.

8.06

An employee is not entitled to severance pay in respect of a period when the employee is on leave-of-absence without pay for a period which is greater than thirty (30) days, or for a period which constitutes a hiatus in the employee’s service such as:

(a)    Political Activity (Public Service of Ontario Act, 2006, Part V)
(b)    Layoff (Article 29)
(c)    Educational Leave (Public Service of Ontario Act, 2006, Public Service Commission Directive on HR Administration, sections 14 and 15).

8.07

An employee may receive only one (1) termination payment for a given period of service.

8.08

Any severance pay to which an employee is entitled under Article 8 shall be reduced by an amount equal to any payment to which the employee is entitled under Section 15.01(b) of Article 15.

8.09

An Association represented employee who intends to terminate their employment and who would, upon the termination of employment, be entitled to severance pay under Article 8.01, 8.02, 8.03 or 8.04 may elect, in lieu of the payment provided for in those articles, to take a leave of absence with pay.

8.10

A leave pursuant to Article 8.09 shall not be more than the lesser of:

(a)    the length of time determined under those Articles for computing the severance pay to which the employee would be entitled; and
(b)    the length of time between the commencement of the leave of absence with pay and the end of the month in which the employee will attain sixty-five (65) years of age.

8.11

The employment of an employee who has elected under Article 8.09 to take a leave of absence with pay continues until the end of the leave of absence.

8.12

An employee’s entitlement to a severance payment under 8.01, 8.02, 8.03 or 8.04 shall be reduced to reflect the time taken by the employee under Article 8.09 as a leave of absence with pay.