Date issued: 01/12/2000
Revision date: 20/01/2022
Purpose
To establish guidelines which provide fair and equitable salary treatment for out-of-scope employees and which support the recruitment and retention of a talented, innovative and committed workforce.
Policy Statement
The Government of Saskatchewan's compensation plan(s) and policies are established within the framework of the government's desire to be a preferred employer while balancing the need for fiscal responsibility and public accountability. The government's overall salary policy provides for competitive salary ranges.
Objectives
This policy outlines provisions related to salary treatment of out-of-scope employees in the public service. The objectives of this policy are to:
- Support the Government of Saskatchewan's strategy and business direction through appropriate compensation programs;
- Support the responsible and defensible expenditure of public funds;
- Ensure equitable and consistent application of compensation functions;
- Align to compensation best practice; and
Maintain integrity of total rewards programming.
Principles
This policy is based on the principle of the Government of Saskatchewan's commitment to Equal Pay for Work of Equal Value and the principle of fiscal responsibility.
Application
This policy applies to out-of-scope Government of Saskatchewan employees appointed pursuant to The Public Service Act, 1998 (The Act) and The Public Service Regulations, 1999 (The Regulations) who are excluded from the scope of the Saskatchewan Government and General Employees' Union (SGEU) and Canadian Union of Public Employees (CUPE) Collective Bargaining Agreements. This policy may also apply to specified order-in-council appointments and individuals hired as employees by Executive Government under contract.
In-scope employees who are not appointed to an out-of-scope position, but whose position is temporarily reclassified (TR) out-of-scope, are subject to the provisions of the collective agreement.
Policy Terms
1. Salary on Initial AppointmentThe Public Service Regulations, 1999 allow for flexibility, on the appointment of a person to a position in the classified service, as long as it is within the salary range established for the position (see section 31 of The Regulations).
In making an offer of appointment, the manager will balance fiscal prudence with the ability to attract high quality candidates, thereby enhancing service to the public. Salary ranges, for fully experienced persons, are considered competitive, relative to the market. Therefore, normal practice is to offer a salary that recognizes the competency level of the candidates while allowing for future recognition of increased competencies. Where a rate above minimum is required to attract a candidate, the manager is guided by the following.
Considerations:
- Quality of field of candidates in the competition;
- Competencies of the candidate - what does the candidate bring to the job;
- Candidate's current salary – what are they willing to accept;
- Internal equity (salary rates of employees with comparable competencies in the immediate work area, near work area, ministry, government);
- External market - does candidate possess credentials and/or competencies which are "in-demand" by other employers and, therefore difficult to recruit;
- Will there be room to progress within the pay range;
- Desirability of the work and/or location;
- Has position been previously advertised with no success?
A salary supplement allows the government to attract and retain qualified employees where the salaries required to attract candidates from a specific profession are higher than those which the classification and compensation systems provide (market consideration) or, to provide fair and equitable salary treatment based on individual facts (see section 32 of The Regulations).
Supplements are initiated by the employer and may be authorized in the following categories:
- Market Supplement:
May be authorized when the regular salary range is not competitive with the external market for a particular specialty. Established for recruitment and retention purposes.
- Individual Qualification Supplement:
May be authorized to recruit an individual candidate who possesses exceptional qualifications, which exceed the position requirements and where the additional qualifications are considered of value to the employer.
- Special Circumstance Supplement:
May be authorized for a number of reasons such as:- To maintain individual salaries on transfer of an agency or a service to the government;
- To provide a salary increase for the duration of a secondment to another employer;
- To correct for salary compression or inversion;
- To maintain salary on reassignment to a position in a lower salary range.
Requests for individual qualifications, special circumstance, or market supplements where the "market reason" has been pre-approved, are to be directed to Total Rewards, PSC and must include:
- The reasons for the request;
- The amount of supplement requested;
- An indication that the request is supported by the permanent head of the employing ministry; and
- An assurance that the cost of the supplement will be absorbed within the appropriation.
- A written request, with rationale, from the ministries concerned;
- External market surveys conducted by Total Rewards, PSC;
- Written assurance the costs will be absorbed within the appropriation(s); or
- Advice to Treasury Board to be prepared by the Commission in consultation with ministries, where the cost and number of employees affected is significant.
An in-range salary adjustment is a permanent adjustment to an employee's regular salary within the regular salary range in recognition of the employee's performance (refer to PS 1202 of the HR Manual and sections 30 and 40 of The Regulations).
An employee who has received an in-range progression salary adjustment can retain their current salary on appointment to a subsequent position.
The Regulations provide authority for annual increases, effective July 1st of each year in accordance with the criteria set out by the PSC.
- In-range progression is based on performance, as assessed using the corporate performance management system (Planning for Success), during the preceding fiscal year;
- Performance ratings and the percentage of salary adjustments are determined by ministries, within the guidelines provided;
- Administration guidelines and any policy changes are published annually by the PSC;
- Total Rewards, PSC authorizes the ministry pay-plans ensuring that the plan does not exceed the dollar allocation established for this purpose.
- In-range adjustment
- Promotion/demotion/transfer/reclassification
- Economic adjustment
Changes to the established pay ranges are recommended by the PSC and require authorization by the Lieutenant Governor in Council (see section 42 of The Regulations).
Where an economic adjustment is authorized on the same date as other transactions (e.g., in-range progression, promotion formula) the economic adjustment is always applied last.
5. Accelerated In-Range Salary Adjustment
Section 41 of The Regulations enables the Chair to authorize an in-range salary adjustment greater than (or in addition to) the in-range progression authorized in accordance with section 40 of The Regulations. Such adjustments are considered under exceptional circumstances, and:
- Must be recommended by the permanent head of the employing ministry;
- May only be authorized if the Chair is satisfied it is required for reasons of internal equity or market considerations;
- Takes effect the first day of the month following authorization; and
- May not exceed the maximum of the regular salary range.
6. Salary on Transfer
A transfer is defined as the movement of an employee from one position to another position that has the same regular salary range maximum.
- On transfer, a permanent employee retains salary rate;
- A ministry may, in exceptional situations, wish to provide an increase on transfer, however, this would need to be handled separately pursuant to section 41 of The Regulations, as an accelerated in-range adjustment.
Where an employee receives an in-range progression salary adjustment or an economic adjustment on the same day as a transfer, these increases are to be applied in the following order:
- In-range adjustment
- Promotion/demotion/transfer/reclassification
- Economic adjustment
Promotion is defined in the Act as "a change of employment from one position to another position that has a higher regular salary range maximum".
For purposes of the application of this policy, a position means a set of duties and responsibilities.
The promotion formula for permanent out-of-scope employees will normally be 8% but may be any amount "up to 8%". A manager may authorize an increase lower than 8% in circumstances such as:
- An employee has received promotion formula for a very similar assignment on a temporary basis and is being appointed to permanent status;
- An employee was hired as an "underfill" to allow them to acquire some experience needed to fully qualify for the assignment, and is promoted, through reclassification, one or more levels, in a relatively short period of time (e.g., prior to having served the equivalent of a probationary period);
- An employee has been on a temporary reclassification for a relatively short period of time and has received an in-range progression salary adjustment. On promotion, the temporary reclassification rate with in-range progression becomes the base salary for purposes of applying promotion formula. If these transactions result in a series of promotions in a short time period, which would result in the employee being unfairly enriched, a lesser rate for the second promotion may be more appropriate;
- Where a series of promotions in a short time frame would result in internal inequities, a lesser rate on the later promotions may be deemed appropriate.
For non-permanent and probationary employees, on subsequent appointment, the Commission determines salary (i.e., this can be treated as a new appointment).
If the promotion is as a result of a permanent reclassification (see #9 Salary on Permanent Reclassification and section 38 of The Regulations), probationary employees will retain current salary, subject to the minimum/ maximum of the new regular salary range.
The promotion formula is authorized by the PSC or the ministry official who has been named as a delegated authority for this purpose.
Where an employee receives an in-range progression salary adjustment or an economic adjustment on the same day as a promotion, these increases are to be applied in the following order:
- In-range adjustment
- Promotion/demotion/transfer/reclassification
- Economic adjustment
"Red-circling" occurs when an employee retains a salary range in effect prior to a downward reclassification (also see #9 Salary on Permanent Reclassification). The employee remains in this range until the new, lower range, catches up to the frozen or red-circled range, through the application of economic adjustments.
A promotion from a position in which an individual's salary has been "red-circled" is a positive move, in that it assists the employee to move forward and reduces or eliminates the amount of "overpayment" the employee is receiving. In these instances the promotion is determined by comparing the classification of the employee's home position and the classification of the position they are moving to.
Where an employee's salary has been "red-circled", pursuant to section 36 of The Regulations (also see #9 Salary on Permanent Reclassification) and that employee is being promoted, the salary that is applied will depend on the amount of increase available. Salary treatment can be determined on a "case-by-case" basis, as evidenced by the following examples:
Option A:
Where the maximum of the range the employee is being promoted to is higher than the maximum of the "red-circled" range, normal promotion formula, subject to the maximum of the new range, should be applied.
Option B:
Where the maximum of the "red-circled" range is above the maximum of the range for the "promotion" but the employee is not at the maximum of the red-circled range, the manager may provide an increase within the red-circled range to reflect that a promotion has taken place and the employee should retain their red-circled status.
Promotion of an Employee on Initial Probation
On subsequent appointment, a probationary employee's salary will be determined by receiving either the minimum of the range or retaining their current salary. If initially hired up-in-range or if an in-range progression salary adjustment has been received, the salary can be retained subject to the minimum and maximum of the new salary range. The manager has the option of offering a salary that is up-in-range for an employee on initial probation. In determining the extent to which an increase in pay will be provided the manager will be guided by:
- Length of service (i.e., has the employee just commenced or have they nearly completed the probationary period);
- Extent of increase in salary from previous employer;
- Ability to recruit to this position (market considerations);
- Internal equity.
8. Salary on Demotion
A demotion is defined under The Act as "a change of employment from one position to another position that has a lower regular salary range maximum".
Section 35 of The Regulations provides for the Commission to determine the new regular salary. This decision is made in consultation with the ministry.
- Typically, a permanent employee will retain their pre-demotion current rate, if the rate falls within the range of the lower classification;
- Where the permanent employee's rate is above the maximum of the lower range the appointment is typically to the maximum of the lower salary range to minimize salary loss.
- Is the move voluntary or involuntary;
- What are the employee's qualifications;
- Is this a permanent employee;
- Is the demotion within the employee's field of expertise or in a new field;
- Length of time elapsed between appointments;
- Is the move in the interest of the government?
Demotion of an Employee with Red-Circled Salary
Where an employee's salary has been "red-circled", pursuant to section 36 of The Regulations (also see #9 Salary on Permanent Reclassification) and that employee is accepting a demotion, salary treatment would allow:
- Retention of current rate, if the rate falls within the new range;
- Appointment at the maximum of the range of the classification the employee is accepting a demotion to.
- In-range adjustment
- Promotion/demotion/transfer/reclassification
- Economic adjustment
Where the reclassification is a promotion (i.e., to a position having a higher regular salary range maximum, also referred to as an upward reclassification), section 36 of The Regulations provides for promotion formula to apply (also see #7 Salary on Promotion).
Where the permanent reclassification is to a classification level having a lower salary range maximum (i.e., reclassified downward), salary treatment depends on the permanent employee's current rate of pay:
A. Where the employee's salary immediately before the effective date of the reclassification is above the range maximum of the new range, the employee is "red-circled". That is, they retain the salary rate and range in effect prior to the reclassification. The employee progresses through the red-circled range until they reach the maximum of the range, however, the range itself is "frozen".
The employee remains in this range until the new, lower range, catches up to the frozen or red-circled range, through the application of economic adjustments.
Note: The purpose of "red-circling" is to balance the short-term fairness for the individual with longer term fairness and equity for all employees.
B. Where the employee's salary immediately before the effective date of the reclassification is at or below the maximum of the new range, the employee's rate of pay is unchanged, and the employee is eligible for in-range progression to the maximum of the new range (see section 36 of The Regulations).
Where a reclassification involves an employee who is on probation, section 38 of The Regulations applies. In accordance with #7 Salary on Promotion, when a position is upward reclassified, a probationary employee will retain current salary, subject to the minimum/ maximum of the new regular salary range.
Where an employee receives an in-range progression salary adjustment or an economic adjustment on the same day as a reclassification, these increases are to be applied in the following order:
- In-range adjustment
- Promotion/demotion/transfer/reclassification
- Economic adjustment
Section 8 of The Regulations provides for a position to be reclassified on a temporary basis where the duties and responsibilities of the position have changed on a non-permanent basis. Temporary reclassification differs from temporary substitution (also see #14 Salary on Temporary Substitution) in that the increased salary is considered base pay for all benefit plans and applies automatically to all paid time off. A temporary reclassification is recommended where an assignment is expected to last for an extended period of time.
- Where a permanent employee's position is reclassified upward on a temporary basis, the employee is eligible for the applicable promotion formula (see #7 Salary on Promotion);
- Although an employee may, from time to time, be assigned duties which would normally be remunerated at a lower rate of pay, there is no provision for a temporary downward reclassification. These situations are normally considered work assignments and there is no change to salary. It is important to note that the employee retains their right to the home assignment;
- An employee on a temporary reclassification who has received an in-range progression salary adjustment and who is subsequently appointed to another position or permanently reclassified is entitled to use the salary achieved through temporary reclassification plus the in-range adjustment as their base salary for purposes of calculating promotion formula (see section 36(5) of The Regulations).
11. Salary on Appointment from Re-employment List
Where an employee, whose name has been on a re-employment list, is found to be qualified for a position in a classification having an equivalent or lower salary range, that employee may be re-appointed from the re-employment list pursuant to sections 14 or 43 of The Regulations.
On appointment, normal practice would be to provide a salary which is not less than that earned by the employee prior to leaving active service (subject to the current maximum of the salary range). In determining an appropriate salary, the following should be considered:
Considerations:
- Length of time employee has been away from employment;
- How current are the employee's skills;
- Have new skills been acquired while the employee has been on the re-employment list;
- How similar is the work the employee is being offered to that previously performed by the employee;
- What are salaries and qualifications of employees in similar jobs?
12. Salary on Promotion/Transfer between Compensation Plan
When an employee moves to a position in another compensation plan (e.g., In-scope to out-of-scope; out-of-scope to in-scope; Crown Counsel to MCP), the promotion provisions of the receiving plan govern. Exception to the above, where there is a promotion from a bargaining unit to out-of-scope, an employee receives the promotion formula of 8% (for permanent employees), or may be provided an up-in-range salary greater than the promotional salary provides, subject to the salary range minimum and maximum of the new appointment.
Hours of Work Conversion
On movement from a bargaining unit into an out-of-scope plan (or from an out-of-scope plan into an in-scope plan), the first step is to determine whether the move constitutes a promotion. To make this determination, salaries must be converted to an hourly rate.
Salaries for out-of-scope employees are stated as a monthly or annual amount. Out-of-scope employees work undefined hours except for the management support group, which have defined hours of work (36-hour work week). The following formulae are used to derive an hourly rate.
| A) | MCP - Management Support Group: |
Monthly salary
156
|
or |
Annual salary
1872
|
| B) | MCP - Management:/td> |
Monthly salary
165.333
|
Or |
Annual salary
1984
|
| C) |
Crown counsel and other Out-of-Scope refer to MCP above
|
The move is a promotion if the hourly range maximum of the new position exceeds the hourly range maximum of the "home" position.
In all cases, the promotion formula is subject to range maximum.
13. Payment of Non-Permanent Employees
Out-of-scope employees employed on a non-permanent basis, who work:
- full-time (undefined) hours, are to be paid through the exception reporting pay roll system (i.e., paid monthly and eligible for Scheduled Days Off (SDOs);
- less than full-time hours on an on-going basis (i.e., on a casual or part-time basis) are to be paid through the positive reporting payroll system (i.e., paid bi-weekly and not eligible for SDOs).
Temporary Substitution is the term used to describe the assignment of higher level duties on a short-term basis.
Examples of reasons for Temporary Substitution are:
- While staffing a vacancy;
- Replacing during an illness;
- Replacing on an extended vacation;
- A temporary assignment of a project which warrants a classification above the employee's normal level.
- An assignment is made for a period greater than 15 working days but less than two years (Management Support Group) are eligible if the assignment is 5 complete days or more);
- Where the assignment, if made on a permanent basis, would warrant an upward reclassification (i.e., the employee must be handling a substantial portion of the higher level duties in order to qualify).
In order to be eligible for the higher rate, the employee must be performing the higher level duties. Therefore, time spent on vacation leave or SDOs is typically not eligible for the higher rate of pay (Incidental days during a period of long assignment may be paid at the higher rate).
Additional salary on Temporary Substitution is a supplementary earning and is not considered base pay for purposes of any benefit plans (including pension). Further, it is not considered base pay for purposes of promotion from the position.
When it is known in advance that the period of temporary substitution is for an extended period of time, a temporary reclassification is recommended.
15. Designated Holidays
All permanent full-time out-of-scope employees are eligible for leave with pay for:
| New Year's Day | Labour Day |
| Family Day | Thanksgiving Day |
| Good Friday | Remembrance Day |
| Victoria Day | Christmas Day |
| Canada Day | Boxing Day |
| Saskatchewan Day | |
| One additional day as designated by the Chair |
Every non-permanent employee is entitled to leave with pay or to payment at the appropriate rate for each of the days designated above. Non-permanent employees paid on an exception-based payroll system are provided leave with pay, while employees on a positive reporting based system are eligible to be paid an additional 5.4% of regular salary earned during the pay period.
Note: Section 2-32(3) of The Saskatchewan Employment Act provides that where any employee works on a public holiday, or another day designated by the employer for observance of the public holiday that employee is to be paid for the public holiday plus a rate that is 1.5 times the employee's regular rate of wages for the time worked.
16. Additional Pay for Extended Hours
Section 44 of The Regulations provides for the Commission to designate positions that are eligible for compensation for overtime work.
MCP - Management Support Group (MSG)
All out-of-scope employees in management support roles, including Executive Coordinators and Executive Administrative Assistants to permanent heads, work clerical (office) hours and are eligible for the same overtime rates as their counterparts in SGEU and/or CUPE 600. Like in-scope employees, they are eligible for overtime for hours worked outside of the normal daily hours (these vary depending on whether they work a 5/4 or 5/5 work pattern), or for hours worked on a weekend, a day-off, or a designated holiday. To be eligible for an overtime premium, hours of work must be assigned or formally authorized.
Overtime rates for MCP – Management Support Group (MSG) employees are:
- Time and one-half for the first four hours and double time thereafter;
- Double time for all hours worked on an assigned day of rest;
- Time and one-half for all hours worked on a designated holiday up to the employee's normal hours and double time and one half for all hours worked in excess of the employee's normal hours.
Out-of-scope employees, except for the Management Support Group, work undefined hours as necessary to accomplish the job assignment. On occasion, work demands necessitate extra hours, and there is a corresponding understanding that these employees may, from time to time balance personal needs when work pressures are less demanding.
A manager may authorize leave with pay, where excessive hours have been worked.
Additional compensation for exceptional hours is not provided to these out-of-scope employees in other than the most exceptional circumstances and must be authorized by the Chair.
Examples where additional remuneration might be authorized:
- Where managers were required to work an extended period as a result of job action related to collective bargaining;
- Working through a particularly difficult forest fire season;
- Where there is an on-going or regularly scheduled expectation to be available to work additional hours more than the regular work week.
17. Additional Pay for Stand-by Duties
Section 90 of The Regulations allows the Commission to authorize an employee to receive a stand-by differential for each eight-hour period, (or portion of an eight-hour period) that an employee is required to be on stand-by.
Stand-by is defined as a period during which an employee is not at work but is assigned to be on call and immediately available to return to work.
While any out-of-scope employee may, from time to time, be required to return to work, on reasonably short notice, the employer recognizes that these situations should be the exception, rather than the norm. (Recognition for excessive hours worked, may be provided as time off in lieu; see #16 above.)
Where there is an on-going requirement for an out-of-scope employee to be available for immediate return to work, the Commission may authorize additional pay. Current rates for stand-by are consistent with those provided through the SGEU collective bargaining agreement.
18. Shift Differential
Section 88 of The Regulations allows the Commission to authorize a shift differential for all hours worked between the hours of 6:00 p.m. and 7:00 a.m.
- Shift differentials typically apply to institutions operating 24 hours a day;
- A shift differential does not form part of regular salary and is not to be used in calculating overtime rates.
Subsection 88.1(1) of The Regulations allows the Commission to authorize a weekend differential for all hours worked between 6:00 p.m. on a Friday and 7 a.m. on a following Monday.
20. Severance
There is no formula for severance payments made to out-of-scope employees. Rather, consideration of any potential liability, as well as the amount of severance, is based on common law principles. (Common law, in general, is a body of law that develops and derives through judicial decisions, as distinguished from legislative enactment.) At common law, an employer has an obligation to provide reasonable notice to an employee, taking into consideration the employee's age, years of service and level within the organization. As well, there may be other factors (e.g., health, personal, location, employability, inducement to the organization) which a court might take into consideration in settling a claim for damages.
- On job abolishment the government's practice is to provide out-of-scope employees with an offer of severance, (based on common law principles), that is fair and equitable.
- There may be situations, other than job abolishment, where the employer is liable for severance. In all cases, legal counsel determines, based on the facts provided, whether severance will be paid;
- In addition to the severance amount employees may be eligible for $5000 in Career Assistance. Career Assistance is available immediately upon notice of termination being provided;
- Severance payments are made pursuant to The Public Service Act, 1998, and The Proceedings Against the Crown Act.
The severance process, for out-of-scope employees, is jointly administered by Total Rewards, PSC and Civil Law, Ministry of Justice and Attorney General. First contact, in all cases where a liability for severance may exist, is to the Human Resources Business Partner Team, who will engage with Total Rewards, PSC.
21. Other
There are a number of areas related to out-of-scope compensation which are covered, either in separate policy or where the appropriate section of The Regulations is fully explanatory.
These items are:
| 1. Northern District Allowance | Section 85 -The Public Service Regulations, 1999 |
| 2. Remuneration for Professional Fees | Section 89 -The Public Service Regulations, 1999 |
| 3. Salary on Reallocation | Section 37-The Public Service Regulations, 1999 |
| 4. Salary on reversion on failure of probationary period | Section 26-The Public Service Regulations, 1999 |
| 5. Vacation Leave | Section 48 - 60-The Public Service Regulations, 1999; Section 701-1 Human Resource Manual; Finance and Admin Manual |
| 6. Sick Leave | Section 61-66-ThePublic Service Regulations, 1999 |
| 7. Insured Benefit Plans | Plannera web site; Benefit brochures |
| 8. Worker's Compensation | Section 77-ThePublic Service Regulations, 1999; Section 705 Human Resource Manual |
| 9. Variable hours of Work | Section 709 Human Resource Manual |
| 10. Car Allowances for Senior Officials |
Section 602-1 Human Resource Manual |
| 11. Relocation Allowance | Section 87-ThePublic Service Regulations, 1999; Section 706 Human Resource Manual |
| 12. Scheduled Days Off (SDO) | Section 1203 Human Resource Manual |
| 13. Out-of-Scope Performance Management Ratings and Administration Guidelines | Section 1202 Human Resource Manual |
Authority
Policy Inquiries
All policy inquiries are to be directed to the Human Resource Service Centre.