FAQS about the Selection of Employees for Retention or Lay-Off (SERLO)

The following FAQs outline the Voluntary Departure Program (VDP) and Selection of Employees for Retention or Lay-Off (SERLO)

The SERLO process, overseen by the Public Service Commission of Canada, is a structured approach used during work force adjustments (WFA) to determine which employees will be retained and which will be laid off. 

This process is distinct from typical appointment procedures, as it involves employees who have already met the merit criteria for their current positions

This information pertains to members of the following groups: CP, IT, NR, RE, SH, SP.

If you have any questions or require any assistance, we encourage you to contact your steward and/or Consultation Team.

What is the Voluntary Departure Program?

A Voluntary Departure Program allows affected employees to volunteer to leave the public service prior to receiving their official WFA status. This program only applies in WFA situations in which there are five or more affected employees of the same group, level, and work unit, and where the Deputy Head cannot provide a GRJO to the affected employees. 

Employees who volunteer will become opting employees and will have access to Option A (Surplus priority status for twelve months), Option B (Transition Support Measure), or Option C (Education Allowance). 

Does seniority impact the Voluntary Departure Program?

If there are more volunteers than there are positions to eliminate through WFA, the volunteers will be chosen based on their seniority. Seniority is based on an employee's total years of service in the public service, whether continuous or discontinuous. Alternatively, if there are more positions to eliminate than volunteers, the Employer will proceed with a SERLO process.

If I volunteer in the Voluntary Departure Program, will I have access to Employment Insurance?

If you participate in a Voluntary Departure Program (VDP) and resign, you are deemed to have been laid off and are therefore eligible to Employment Insurance regular benefits. However, your Transition Support Measure and any severance pay must first be allocated based on your normal gross weekly earnings, delaying your first week of entitlement to EI benefits accordingly. There are further conditions to demonstrate eligibility for EI benefits in any given week, and you should consult Service Canada for more information.

What is the SERLO process?

The SERLO (Selection for Retention or Lay-Off) process is designed to select employees for retention or lay-off based on merit. It ensures that decisions are made fairly, transparently, and in line with organizational needs during WFA situations.

The process is governed by the Public Service Employment Act (PSEA) and the Public Service Employment Regulations (PSER).

  • Section 64 of the PSEA grants deputy heads the authority to lay off employees due to lack of work, discontinuance of a function, or transfer of work.
  • Section 21 of the PSER outlines the procedures for selecting employees for retention or lay-off, emphasizing assessments based on merit.
How does SERLO differ from the staffing appointment process?

Under the Public Service Employment Act, SERLO is not considered an appointment process. SERLO assesses existing and qualified employees based on specific criteria that is often different from the merit criteria used to fill positions in a staffing appointment process.  

SERLO is a unilateral management-designed process that is regulated by the Public Service Commission. It is not part of the WFA Appendix negotiated between the Employer and PIPSC.

How will I know if I’m affected by the SERLO process?

Employees impacted by the SERLO process will be formally notified in writing. If you occupy a position identified as affected or are performing similar duties, you will be included in the process.

What criteria will be used to assess employees?

Employees are assessed based on merit criteria, which include essential qualifications, asset qualifications, organizational needs, and operational requirements. Examples include education, experience, official language proficiency, and specific skills needed for future organizational needs. Examples include education, experience, official language proficiency, past performance and specific skills needed for future organizational needs.

How will the organization ensure the process is fair?

Fairness is ensured through objective and merit-based assessments. In advance of the process, employees participating in the process will be informed of the qualifications, requirements, needs, and assessment methods that will be used in their assessment. Employees will also be provided the opportunity to request accommodation measures. 

How will the organization communicate decisions?

All employees included in the SERLO process will be notified of decisions simultaneously and in writing. The communication will include the retention or layoff decision, provide information about next steps, including their official WFA status if applicable. 

If you are selected for retention, your affected status will be rescinded. If you are selected for lay-off, you will be provided with the reasons for the decision and the right to recourse.All employees participating in SERLO can request that opportunity to discuss their assessment results with the delegated manager.

What happens if I am selected for lay-off? Is there any recourse?

If you are selected for lay-off, you will receive written notice from your employer, outlining the decision and next steps. This includes information on whether you are offered a guarantee of a reasonable job offer or given access to various options as per the Workforce Adjustment Directive (WFAD) or the relevant collective agreement. Additionally, you will be informed of your right to file a complaint if you believe the layoff selection was an abuse of authority under subsection 65(1) of the Public Service Employment Act (PSEA). However, no complaints can be made regarding the overall decision to lay off employees or the selection of the affected organizational parts.

Can I volunteer for lay-off?

Yes, in some cases, employees may volunteer for lay-off. If more employees volunteer than needed, the manager will apply criteria to determine which requests to accept.

What happens if I am selected for lay-off?

Employee Rights: Lay-off Complaints Under PSEA

Subsection 65(1): Right to Complaint for Lay-off Selection

"An employee who has been informed by the deputy head that they will be laid off may file a complaint with the Board that the deputy head has abused their authority in selecting the employee for lay-off."

This means that employees, including executives, can file a complaint only if they believe the lay-off selection process was an abuse of authority – such as favoritism, discrimination, or improper application of criteria.

Subsection 65(2): No Complaint Against Broader Decisions

"No complaint may be made regarding the decision to lay off employees, the determination of which part of the organization employees will be laid off from, or the number of employees to be laid off from that part."

Thus, employees cannot challenge:

  • the decision to lay off employees in general
  • the selection of the organizational unit (such as a department or region) for reductions, or
  • the number of positions to be eliminated

Employees, including executives, who have been selected for lay-off, have the right to file a complaint under subsection 65(1) of the Public Service Employment Act (PSEA) on the grounds that their selection was an abuse of authority. Subsection 65(2) clarifies that no complaint can be filed regarding the decision to lay off employees, the identification of the organizational unit for lay-offs, or the number of employees to be laid off from that unit.

Will I have an opportunity to discuss the assessment results?

Yes. While the SERLO process does not include informal discussions like appointment processes, managers are encouraged to explain and discuss your results and decisions upon request.

What support is available to me if I am affected?

Affected employees have access to services such as Employee Assistance Programs (EAPs), career transition programs, and other support mechanisms offered by the organization.

Can I continue working in another department or position if I am laid off?

Employees selected for lay-off may be eligible for priority consideration for other positions in the public service. The organization will assist in facilitating this process where possible.

What if I am on leave during the assessment process?

Employees on certain types of leave (e.g., maternity or extended sick leave) may have their assessments delayed until they return. In some cases, alternative assessment methods may be used, or the decision may be deferred. The Employer’s duty to accommodate employees whose leave relates to a protected ground under human rights legislation continues to apply in a SERLO process.

How will the organization communicate decisions?

All employees included in the SERLO process will be notified of decisions simultaneously and in writing. The communication will include details about retention or lay-off and information about next steps.

If I leave voluntarily, do I have access to Employment Insurance?

If you participate in a voluntary departure program (VDP) and resign, you are deemed to have been laid off and are therefore eligible to Employment Insurance regular benefits. However, your transition support measure and any severance must first be allocated based on your normal gross weekly earnings, delaying your first week of entitlement to EI benefits accordingly. There are further conditions to demonstrate eligibility for EI benefits in any given week, and you should consult Service Canada for more information.