Changes to leave carryovers and cash-outs

Vacation leave cash-out changes

The following changes affect the CP (formerly AV), IT (formerly CS), NR, RE, and SP groups. 

Vacation leave cash-out rules do not apply to the SH Group because SH group members have no limit to the number of vacation leave credits they can carry over.

Your collective agreement allows you to carry over up to 262.5 hours (35 days) of vacation leave to the next fiscal year. Anything over that, is usually cashed out – you get paid for the value of those extra hours rather than taking time off. 

In recent years, the excess vacation leave cash-out was postponed due to Phoenix troubles. As a result, you may have more vacation leave banked than you can carry over.

Starting in 2022, rather than a one-time cash-out on March 31, any excess vacation leave will be cashed out over 5 years (20% per year). 

This allows you to spread out the tax impact of a one-time payment and gives you more flexibility to use your vacation leave over the next four years (2022-2026).

See our FAQs on cash-out of excess vacation and compensatory leave for full information on what to expect on your cash-out.

The exact date you’ll be paid is not known, so watch for a notice from your manager or human resources team. The remaining 80% of your excess vacation leave will be carried over to the next fiscal year, and 20% of whatever is left each fiscal year will be automatically cashed out each year until 2026. At that point, all remaining excess vacation leave credits will be cashed out.

Remember – if you have up to 262.5 hours of vacation leave banked, you’ll still be able to carry over those hours. There’s no change.

Finally, note that the normal carryover limits in your collective agreement will be enforced in upcoming years. Starting on March 31, 2022, and on each March 31 going forward, you’ll receive a 100% payment for the earned but unused portion of your vacation leave (above your allowable carryover of 262.5 hours) accumulated during the ending fiscal year.

RE and CP group members should also note: your collective agreement states that excess vacation leave banks must be reduced by 75 hours per year. This rule is suspended and replaced by the 20% cash-out of vacation leave.

Compensatory leave cash-out

The following changes affect the CP (formerly AV), IT (formerly CS), NR, RE, SH and SP groups. For most groups, compensatory leave cannot be carried over to the next fiscal year. IT (CS) group members can, however, carry over up to 37.5 hours. 

IT (CS) group members only – your collective agreement allows you to carry over up to 37.5 hours (5 days) of compensatory leave to the next fiscal year. Anything over that is usually cashed out – you get paid for the value of those extra hours rather than taking time off.

In recent years, the compensatory leave cash-out was postponed due to Phoenix troubles. As a result, you may have excess compensatory leave that cannot be carried over.

In 2022, rather than a one-time cash-out on March 31, any excess compensatory leave will be cashed out over a 5-year period (20% per year). 

This allows you to spread out the tax impact of a one-time payment, and gives you more flexibility to use your compensatory leave over the next four years (2022-2026).

Please see our FAQs on cash-out of excess vacation and compensatory leave for full information on what to expect on your cash-out.

The exact date you’ll be paid is not yet known. Watch for a notice from your manager or human resources team. The remaining 80% of your excess compensatory leave on  March 31 of each year will be carried over to the next fiscal year, and 20% of whatever is left each fiscal year will be automatically cashed out each year until 2026. At that point, all remaining excess compensatory leave credits will be cashed out.

Finally, note that the normal cash-out provisions of your collective agreement are being enforced starting in the 2021-22 fiscal year. However, since these credits are not normally cashed out on March 31 – you have a bit more time to use compensatory leave credits per the following chart:

ANNUAL (NORMAL) COMPENSATORY LEAVE CASH-OUTS

Based on the chart above, you can expect to receive a 100% payment for the earned but unused portion of your compensatory leave accumulated in 2021-22 and during each fiscal year going forward. 

For IT (CS) group members – you will receive a 100% payment for hours accumulated above your allowable carryover of 37.5 hours during the 2021-22 fiscal year.

Revised May 3, 2022.