31.01

An employee who was appointed to the Regular service 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 March 31, 1978, 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 April 1, 1978, the benefits described under Article 31.04.01 shall apply.

31.02

Notwithstanding Article 31.01, an employee who was appointed to the Regular service 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 March 31, 1978:

(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 Article 31.01,

whichever is the greater, but the employee is not entitled to receive both of those benefits.

For the period from April 1, 1978, benefits described under Article 31.04 shall apply.

31.03

An employee who is appointed to the Regular service 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,

where the employee has completed one (1) year of continuous service and 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,

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

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.

31.04.01

An employee appointed to the regular service between April 1, 1978 and December 31, 2008 shall be entitled to benefits described under Article 31.04.01.

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,

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

(iv) resignation during the surplus notice period; 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 in an amount equal to one (1) week of salary for each year of continuous service.

Notwithstanding Article 31.04.01, an employee who voluntarily resigns is only entitled to termination payments for service accrued up to December 31, 2008.

31.04.02

An employee appointed to the regular service on or after January 1, 2009 shall be entitled to benefits described under Article 31.04.02.

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,

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

(iv) resignation during the surplus notice period; 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 or the OPSEU Pension Plan immediately after retiring,

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

31.04.03

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.

31.04.04

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

31.05

The total of the amount paid to an employee 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 (1/2) of the annual salary of the employee at the date when they cease to be an employee under 31.04.01.

31.06

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 (1/4) of the annual salary at the date when the employee ceased to be an employee.

31.07

The calculation of severance pay shall be based on the annual salary the employee was receiving at the date when they cease to be an employee.

31.08

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

(a) any part of a month that is less than fifteen (15) days shall be disregarded; and

(b) any part of a month that is fifteen (15) days or more shall be deemed to be a month.

31.09

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 RPT8 – Layoff, Surplus Entitlements and Surplus Pension Bridging)

(c) Educational Leave (Public Service Commission Key Directive on HR Administration, section 14 and 15).

31.10

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

31.11

Notwithstanding Article 31.09, an employee who has been released in accordance with Article 29 (Surplus Entitlements) and who is subsequently re-appointed in accordance with Article 34.03 (Seniority) may, at their option, repay any termination payments received under this Article to the Minister of Finance, and thereby, restore termination pay entitlements for the period of continuous service represented by the payment. For purposes of clarity, the restoration of such service is contingent upon the employee repaying, at the time they are re-appointed, the full amount of termination pay received.

31.12

In a case where an employee leaves employment with the Employer and acquires a job with a Crown Agency, the Employer may pay out the termination pay immediately or, by arrangement with the Crown Agency, transfer liability for the termination pay to the Crown Agency, in which case such liability will be assumed by the Crown Agency and the Employer will be relieved from any further obligation in this regard, save and except that where the Crown Agency does not satisfy its obligation, the Employer shall do so.

31.13

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 31.01, 31.02, 31.03 or 31.04 may elect, in lieu of the payment provided for in those articles, to take a leave of absence with pay.

31.14

A leave pursuant to Article 31.13 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.

31.15

The employment of an employee who has elected under Article 31.13 to take a leave of absence with pay continues until the end of the leave of absence.

31.16

An employee’s entitlement to a severance payment under Article 31.01, 31.02, 31.03 or 31.04 shall be reduced to reflect the time taken by the employee under Article 31.13 as a leave of absence with pay.

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