This directive covers employee eligibility for position abolishment severance pay and how to calculate severance pay.

Unless otherwise specified, this directive applies to bargaining unit, opted out, excluded, and management employees whose positions are abolished.

Please note: This is suspended to March 30, 2020 for permanent Bargaining Unit employees due to Letter of Understanding #17 in the Collective Agreement (Employment Security). Bargaining Unit employees must refer to the Collective Agreement for the most current information.

Eligibility for severance pay

When the vesting period expires, an employee who is no longer employed in the Alberta Public Service in any capacity is eligible for position abolishment severance pay. This payment is made at the end of the vesting period, or at any time during the vesting period if the employee waives vested rights.

An employee who accepts another permanent position at any level in the Alberta Public Service is not entitled to position abolishment severance pay.

An employee who accepts temporary or wage employment that extends past the expiry date of the vesting period is eligible for position abolishment severance pay when the non-permanent employment ends. (The department that served the position abolishment notice will make the severance payment.)

Calculating severance pay

Employees receive one and one-half weeks' pay for each full year of continuous employment (PDF, 880 KB), to a maximum of 25 weeks' pay. Position abolishment severance is not paid for a partial year of employment. Continuous employment includes wage and temporary service, provided there has been no break in service (PDF, 880 KB). (Note: The position abolishment severance pay is calculated based on the period of continuous employment and the salary in effect on the date the employee was released from the permanent position.) The severance payment is made in a lump sum.

Position abolishment severance pay does not count as pensionable service, and does not cause employees to earn vacation pay.

Position abolishment severance pay for part-time permanent employees is calculated based on the salary they are earning (not including acting pay) at the time their position is abolished.

About this directive

Authority: Collective Agreement, Article 15
Public Service Employment Regulation (PDF, 880 KB)
Application: Organizations under the Public Service Act
Effective Date: October 1, 2002 (reviewed March 31, 2009)
Contact: Alberta Public Service Commission:
Labour and Employment Practices; Talent Acquisition and Mobility