Ottawa payroll proposal could claw back paycheques

Pay in arrears plan for federal workers violates agreements: Union
By Liz Foster
|Canadian Payroll Reporter|Last Updated: 11/11/2013

A proposal by the federal government to make changes to the payroll of its employees — with a potential to save Ottawa $9 billion in the process — is being met with hostility by unions and called “wrong-headed” by one employment lawyer.

Public Works and Government Services Canada (PWGSC) floated the idea of changes to the pay system for federal employees in the 2013 federal budget. Public service employees are currently paid biweekly for the work they most recently completed — the paycheque an employee receives on payday is compensation for the 10 most recent days worked, including that payday.

This means paycheques are printed ahead of time, compensating employees for days they have not yet worked in order to provide paycheques in real time. The proposed pay system would delay paycheques by two weeks, allowing any transactions or changes that might occur — including sick leave or salary increases — to be accurately reflected.