Employment Contract Policy

Purpose
The purpose of this policy is to prescribe the terms and conditions under which
contracts of employment should be administered. It is not intended to be used as an
alternative to the recruitment and selection procedures of the Public Service
Commission as they relate to the merit principle or the classification and creation of
positions procedures covered by Treasury Board personnel administration
procedures. While many of the provisions may equally pertain to contracts involving
principal and agent relationships (e.g., the engaging of consulting firms), the policy is
intended to cover employer/employee relationships only.

Application
The provisions of this policy shall apply to all Departments.

Definitions
For the purpose of this policy:

a. “Minister” means a member of the Executive Council charged with the

administration of a department which is defined by The Financial
Administration Act.
b. “Permanent Head” means the Deputy Minister or other person defined in the
personnel administration procedures of Treasury Board.
c. “Contractual Employee” means a person employed under a contract of
employment.
d. “Contract of employment” means a written contract entered into between the
Minister and/or the permanent head and a person, employed for the purpose
of performing certain specified work for a certain specified period and whose
complete terms and conditions of employment are contained in the written
contract.

Conditions
Subject to the terms of this policy, the Minister and/or the permanent head may, on
behalf of the Government, enter into a contract of employment with any person
where any of the following circumstances exist:

1. the person will be providing services in connection with a specific project or

program which is of limited duration, and/or which is cost-shared with another
jurisdiction; or
2. a person is required to perform a service on a regular, full-time or part-time
basis, which requires specialized qualifications, knowledge, and/or experience.
Terms
1. Negotiations shall not be commenced between any person and a Minister
and/or a permanent head with a view to entering into a contract of
employment or amending or renewing an existing contract of employment
except as provided under the terms and conditions of this policy;
2. A contract of employment shall not be executed by a Minister or a permanent
head unless the form of the contract has been prepared in consultation with a
solicitor in the Department of Justice;
3. Nothing in this policy shall be construed as precluding the amendment of a
contract of employment to affect an extension in the period of employment;
4. Except as otherwise provided herein, a contract of employment shall not be
negotiated with a person for a position which is covered by a collective
bargaining agreement. Such a person shall be regarded as a temporary
employee and the provisions of the appropriate collective agreement shall
apply to that person’s employment unless a Federal/Provincial cost-sharing
agreement stipulates that it must be contractual;
5. Every contract of employment shall contain a statement relating to the
following terms and conditions of employment:
a. The salary or amount to be paid and whether general or specific future
salary increases shall apply, as well as the method of payment (e.g.
regular payroll, installments, etc.). Payment of increases in lieu of step
progression to contractual employees is prohibited. NOTE: No
commitments are to be made in regard to salary or related matters
without the prior approval of Treasury Board.
b. Specific employment benefits which shall apply such as:
i. annual leave, sick leave and holidays
ii. pension plan
iii. group medical and life insurance plan
iv. overtime
v. injury on duty compensation.
c. The effective date and duration of the period of employment.
d. The work or duties to be performed.
e. The hours of work.
f. Deductions from salary or payment (eg. income tax, etc.).
g. Travelling and out-of-pocket expenses.
h. Use of confidential information.