Changes to leave carryovers and cash-outs

The following changes affect the CP, CS, NR, RE, SH and SP groups. Vacation leave carryover changes do not apply to the SH Group.

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, however, this cash-out was postponed due to Phoenix troubles. As a result, you may have more leave banked than you can carry over.

In 2022, rather than a one-time cash-out starting in April, any excess leave will be cashed out over 5 years (20% per year). This will allow you to spread out the tax impact of a one-time payment or take time off instead.

With the COVID-19 pandemic, many members cancelled vacation plans and banked leave time instead. The new gradual cash-out we secured gives you more flexibility to use your leave.

We anticipate that an official agreement will be signed with the Treasury Board Secretariat in the coming days.

If you have excess vacation leave banked — more than 35 days

This change does not affect the SH group.

If you have a large leave bank — more than 262.5 hours, or 35 days — any leave beyond 35 days will be cashed out over a period of 5 years.

Starting in April 2022, only 20% of your vacation leave in excess of 35 days will be cashed out automatically.

The exact date you’ll be paid could vary, so check with your manager or human resources team. The other 80% of your excess leave will be carried over to the next fiscal year, and 20% will be automatically cashed out each year for 4 more years.

If you don’t want 20% of your excess leave to be cashed out automatically, you must use the equivalent amount of leave by March 31, 2022.

If you have less than 35 days banked

If you have 262.5 hours of vacation leave or less banked, you’ll still be able to carry over up to your carry-over limit of 262.5 hours to the next fiscal year. There’s no change.

Can I accumulate excess vacation leave in upcoming years?

The carryover limit in your collective agreement will be enforced in upcoming years. Starting in 2022, after each fiscal year ends, you’ll receive a 100% payment for the earned but unused portion of your vacation leave accumulated during the past fiscal year.

Compensatory leave cash-out (applies to SH group)

You cannot carry over compensatory leave to the next fiscal year. Unused compensatory leave earned between April 1, 2021, to March 31, 2022, and during upcoming fiscal years will be paid to you in cash according to the timelines and conditions in your collective agreement.

If you’ve accumulated compensatory leave from past years, and you still have an unused balance on March 31, 2022, the value of your remaining compensatory leave will be paid out to you over a period of 5 years: 20% per year from March 31, 2022, to March 31, 2026.

If you don’t want your accumulated compensatory leave from this year or past years to be cashed out, use your leave by March 31, 2022.

We negotiated that only 20% of your compensatory leave will be paid out to you each year to avoid the tax implications of a large increase to your personal income in any given year.

If you want to cash out your vacation or compensatory leave

You can choose to cash out and be paid for any amount of your leave if you prefer, subject to your employer’s discretion. Some conditions apply as indicated in your collective agreement. After submitting a request, the process can take several weeks before you are paid.

If you’re in the RE or CP (formerly AV) groups

Your collective agreement states that excess vacation leave banks must be reduced by 75 hours per year. This rule will be suspended and replaced by the 20% cash-out of vacation leave.