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About this directive
| HR Directive No. | 04/2023 |
|---|---|
| Reference to applicable legislation (act or regulation): | Part 1, Section 13, Public Service Act Part 7, Sections 37 and 41, Public Service Employment Regulation |
| Application: | Management employees appointed or employed pursuant to the Public Service Act. |
| Last updated: | March 2023 |
| Last reviewed: | March 2023 |
| Amended by: | Alberta Public Service Commission: Strategic Services and Public Agency Secretariat, Workforce Policy, Compensation and Job Evaluation Policy |
Purpose
To provide clarity and transparency for consistent application of over-range salary treatment of management employees, across the Alberta Public Service.
Overview
This directive applies only to salary protection for management employees and describes the factors to consider and actions a deputy head shall take if an employee’s salary is over-range, due to an involuntary demotion (as defined under definitions of terms). A management employee's salary is over-range when it exceeds the maximum salary of the pay band or pay zone for the assigned management classification.
Definition of terms
Disclaimer: If there are any discrepancies in how the terms are defined below and the Public Service Act and Public Service Employment Regulation, the act and regulation supersede.
Classification: distinct kind (stream of work) and level of work (level 1, 2, 3) allocated to a position based on the nature of work, responsibilities, scope and complexity.
Deputy head: chief officer of a department, as well as various positions including clerks, officers, and commissioners as prescribed in section 1(d) and section 1(d)(viii)(B) of the Public Service Act.
Involuntary demotion: a non-disciplinary employer initiative, such as a reorganization, a reassignment or reclassification, which results in a decision where an employee is assigned a classification with a lower maximum salary.
Management: employees appointed to a position in the Management Job Evaluation Plan, and paid in accordance with Schedule 2, Management Official Pay Plan, as included in the Public Service Employment Regulation.
Maximum salary: the highest rate of a salary range, pay band, pay zone or pay grade.
Notice period: the period of time in which an employee’s salary, classification, etc. are maintained as a result of the Employer providing notice to an employee of a significant change to terms and conditions of employment, the expiry of which corresponds to the implementation of the noted change.
Over-range: a salary greater than the maximum salary of the assigned classification.
Pay band: a salary range assigned to a management classification [Manager (Band 1), Senior Manager (Band 2), Executive Manager I (Band 3), and Executive Manager II (Band 4)] in Schedule 2 of the Management Official Pay Plan within the Public Service Employment Regulation.
Pay zone: an established boundary, within a pay band, for the Manager (Manager Zone 1, Manager Zone 2) and Senior Manager (Senior Manager Zone 1, Senior Manager Zone 2) classifications.
Salary range: a range that includes set minimum and maximum salaries, which are assigned to opted out and excluded, and management classifications that are identified in the Official Pay Plans.
Over-range pay treatment
This directive is applicable to management employees, who have had their classification impacted by an involuntary demotion and remain in a management classification.
When an employee is involuntarily demoted to a management classification with a lower maximum salary, as other terms and conditions of employment (for example, pension, benefits) remain the same, the deputy head will provide a 12-months' over-range notice period to the employee.
The salary protection timeline and rationale will be clearly communicated to the employee. At the end of the approved notice period, the employee's salary will be reduced to the maximum of the salary range for the assigned classification.
The over-range pay protection will end if the management employee voluntarily leaves the position during the notice period.
Exceptions
In exceptional circumstances and with approval from the Public Service Commissioner, the deputy head may provide up to an additional 12-months' over-range notice, not to exceed a total of 24 months.
The following factors will be considered when determining if additional over-range notice is approved:
- age of employee
- length of continuous service
- type and level of work
- availability of similar employment
Related
When a management employee has been involuntarily demoted to a non-management classification, impacting terms and conditions of employment beyond salary, the notice period is established in accordance with the Classification Process, Effective Dates and Over-Classified Positions Directive.
The Salary Determination Directive provides direction on salary treatment for management employees demoted as a result of a voluntary (for example, employee applies to a position with a lower maximum salary) or disciplinary action.
The Salary Determination Directive provides direction on salary treatment for non-management employees when moving to a classification with a lower maximum salary.