Treasury Board of Canada Secretariat
Symbol of the Government of Canada

ARCHIVED - Demotion


Warning This page has been archived.

Archived Content

Information identified as archived on the Web is for reference, research or recordkeeping purposes. It has not been altered or updated after the date of archiving. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats on the "Contact Us" page.


1. Terms and definitions

The following words and phrases used in this section have the same meaning as the ones in the Glossary of terms and definitions found under the Compensation and Pay Administration heading. In order to ensure consistency and accuracy in terminology, the user may click on any of these terms for the definition.

allowance (indemnité)

annual rate (taux annuel)

appointment document (document de nomination)

certificate of appointment (certificat de nomination)

demotion (rétrogradation)

equalization adjustment (rajustement paritaire)

hourly rate (of pay) (taux (de rémunération) horaire)

lower classification level (niveau de classificationinférieur)

lowest pay increment (plus faible augmentation (de l'échelle de rémunération))

one rate of pay (un taux de rémunération)

voluntary transfer (mutation volontaire)

2. Salary on demotion (PSTCER 25.(1)(2))

This section describes when a person is demoted pursuant to the PSTCER Section 50(A), and the employee is appointed to a position to which these regulations apply that has a lower maximum rate of pay than the maximum rate applicable to the employee's former substantive level.

On demotion, the employee is paid at the rate of pay that is nearest to but not more than the rate of pay the employee was receiving immediately before the appointment.

Note: The salary on appointment to a lower classification level for reasons other than incompetence or incapacity will be the rate of pay that is nearest to but not less than the rate of pay received immediately before the appointment. In these circumstances, the deployment or transfer by appointment rules are to be applied. For more information, refer to the Deployment or transfer by appointment module.

History

Prior to July 29, 1998, if one or both positions were subject to an equalization adjustment, the annual equalization amount was added to each of the rates of pay of the applicable position before applying the above procedures.

When performing calculations where there is a difference in the authorized salary, convert the salaries to the basis of the new group and level prior to the calculation.

Annual salary to hourly salary

Demoted from a classification with authorized annual rates of pay to a classification with rates of pay authorized on an hourly basis.

Convert the annual rate to an hourly rate for calculation purposes.

For example, divide the annual rate by 1956.6 for a 37.50 hours scheduled work week or 2087.04 for a 40 hours scheduled work week.

 

Hourly salary to annual salary

Demoted from a classification with authorized hourly rates of pay to a classification with rates of pay authorized on an annual basis.

Convert the hourly rate to an annual rate for calculation purposes.

For example, multiply the hourly rate by 1956.6 for a 37.50 hours scheduled work week or 2087.04 for a 40 hours scheduled work week.

 

Example 1: Demotion for incapacity

An employee occupies a CR-04 position and is earning $37,421 per annum, which is the 2nd step.

Effective April 23, 2003, the employee is demoted due to incapacity to a ST-SCY-03 position. The employee's certificate of appointment is dated April 14, 2003.

CR-04: Subject to a collective agreement signed on November 19, 2001.

A

Effective June 21, 2000

B

Effective June 21, 2001

C

Effective June 21, 2002

 

$

33,523

34,413

35,301

36,185

A

34,596

35,514

36,431

37,343

B

35,565

36,508

37,451

38,389

C

36,454

37,421

38,387

39,349

ST-SCY-03: Subject to a collective agreement signed on November 19, 2001.

A

Effective June 21, 2000

B

Effective June 21, 2001

C

Effective June 21, 2002

 

$

32,821

33,760

34,712

35,648

A

33,871

34,840

35,823

36,789

B

34,819

35,816

36,826

37,819

C

35,689

36,711

37,747

38,764

Calculation
  • CR-04 rate of pay on April 23, 2003

$37,421 (2nd step)

  • The maximum rate of pay of $38,764 of the new ST-SCY-03 position is less than the maximum rate of pay of $39,349 of the CR-04 position.
 
  • The appointment is a demotion. The employee is paid $36,711, which is the rate of pay nearest to but not more than the rate of pay received previously.

$36,711 (2nd step)

The employee's salary on demotion, which is effective on April 23, 2003, is $36,711. This is the 2nd step of the ST-SCY-03 salary scale.

Example 2: Deployment to a lower level classification

An employee occupies a CR-04 position and is earning $37,421 per annum, which is the 2nd step.

Effective April 23, 2003, the employee is deployed to a ST-SCY-03 position. The employee's certificate of appointment is dated April 14, 2003.

CR-04: Subject to a collective agreement signed on November 19, 2001.

A

Effective June 21, 2000

B

Effective June 21, 2001

C

Effective June 21, 2002

 

$

33,523

34,413

35,301

36,185

A

34,596

35,514

36,431

37,343

B

35,565

36,508

37,451

38,389

C

36,454

37,421

38,387

39,349

ST-SCY-03: Subject to a collective agreement signed on November 19, 2001.

A

Effective June 21, 2000

B

Effective June 21, 2001

C

Effective June 21, 2002

 

$

32,821

33,760

34,712

35,648

A

33,871

34,840

35,823

36,789

B

34,819

35,816

36,826

37,819

C

35,689

36,711

37,747

38,764

Calculation
  • CR-04 rate of pay on April 23, 2003

$37,421 (2nd step)

  • The maximum rate of pay of $38,764 of the new ST-SCY-03 position is less than the maximum rate of pay of $39,349 of the CR-04 position.
 
  • The appointment is a deployment or transfer by appointment. The employee is paid $37,747, which is the rate of pay nearest to but not less than the rate of pay received previously.

$37,747 (3rd step)

The employee's salary on deployment, which is effective on April 23, 2003, is $37,747. This is the 3rd step of the ST-SCY-03 salary scale.