Article 27 - Leave with deferred pay plan
27.01 Definition
The purpose of the leave with deferred pay plan is to enable employees to average their salary over a defined period of time so as to be able to take leave. It is not designed to provide benefits when employees retire or to defer income tax.
The plan includes a period during which employees contribute, and a period of leave.
27.02 Duration of the plan
The duration of a leave with deferred pay plan may be two (2), three (3), four (4) or five (5) years, unless it is extended as a result of the application of the provisions in 27.06 f), g), j), k) or l).
However, the length of the plan, including extensions, cannot exceed seven (7) years under any circumstances.
27.03 Duration of the leave
The duration of the leave may be six (6) to twelve (12) consecutive months, as provided in 27.06 a), and it may not be interrupted for any reason whatsoever.
The duration of the leave may be three (3) months if it is leave for the purposes of pursuing full-time studies in an institution recognized under the Income Tax Act (RSC, c. 1, 5th Supp.). Such leave can only be taken in the last three (3) months of the plan.
The leave must begin at the latest at the end of a maximum of six (6) years after the date on which the plan began, failing which the relevant provisions of 27.06 n) apply.
Except for the provisions of this clause, during this leave employees are not entitled to the benefits of the collective agreement in force in the institution, just as if they were not employed by the institution, subject to their right to claim previously acquired benefits and the provisions of Articles 11 and 12.
During this leave, employees may not receive any remuneration from the Employer, or from another person or company whose relationship with the Employer is not at arm’s length, other than the amount corresponding to the percentage of their salary as provided in 27.06 a) plus, if applicable, the amounts the Employer is required to pay for employee benefits under clause 27.06.
27.04 Conditions of eligibility
Employees may be entitled to a leave with deferred pay plan after requesting it from the Employer, who cannot refuse without a valid reason. They must meet the following conditions:
a) have a position;
b) have completed two (2) years of service;
c) make a written request specifying:
- the duration of their participation in a leave with deferred pay plan;
- the duration of the leave;
- when the leave is to be taken.
These terms must be agreed upon with the Employer and recorded in the form of a written contract that also includes the provisions of this plan.
d) not be on disability leave or leave without pay at the time the contract comes into force.
27.05 Return to work
At the end of the leave, employees may return to their position with the Employer. If, however, the position that they held at the time they went on leave is no longer available, they must use the bumping and/or layoff procedure provided for in Article 14.
At the end of the leave, employees must continue working for the Employer for a length of time at least equivalent to the length of their leave.
27.06 Terms of implementation
a) Salary
During each of the years covered by the plan, employees receive a percentage of the salary on the basic salary that they would receive if they were not participating in the plan, including, where applicable, responsibility premiums, supplements and additional remuneration provided for in Article 17 and Appendix 1, as the case may be. The applicable percentage is determined in accordance with the following table:
| Duration of leave | 2 YEARS | 3 YEARS | 4 YEARS | 5 YEARS |
|---|---|---|---|---|
| 3 months | 87.5 | 91.67 | 87.5 | 90.0 |
| 6 months | 75.0 | 83.34 | 85.4 | 88.32 |
| 7 months | 70.8 | 80.53 | 83.32 | 86.6 |
| 8 months | N/A | 77.76 | 81.25 | 85.0 |
| 9 months | N/A | 75.0 | 79.15 | 83.32 |
| 10 months | N/A | 72.2 | 77.07 | 81.66 |
| 11 months | N/A | N/A | 75.0 | 80.0 |
| 12 months | N/A | N/A | N/A | N/A |
The other premiums are paid to employees in accordance with the provisions of the collective agreement, providing they are normally entitled to them, just as if they were not participating in the plan. During the period of leave, however, the employee is not entitled to these premiums.
b) Pension plan
For the purposes of applying pension plans, each year of participation in the leave with deferred pay plan, excluding the suspensions provided for in this Article, is equal to one (1) year of service, and average salary is established on the basis of the salary that the employees would have earned if they had not participated in the leave with deferred pay plan.
For the duration of the deferred pay plan, employees’ contributions to the pension plan are calculated on the basis of the percentage of salary that they receive in accordance with 27.06 a).
c) Seniority
During this leave, an employee retains and accumulates seniority.
d) Annual vacation leave
During this leave, an employee is deemed to accumulate service for annual vacation leave purposes.
For the duration of the deferred pay plan, annual vacation leave is paid on the basis of the percentage of salary set out in 27.06 a).
If the duration of the leave is one (1) year, the employee is deemed to have taken the amount of paid annual vacation to which they are entitled. If the length of the leave is less than one (1) year, the employee is deemed to have taken the amount of paid annual vacation to which they are entitled, prorated to the length of the leave.
e) Sick leave
During this leave, an employee is deemed to accumulate days of sick leave.
For the duration of the deferred pay plan, days of used or unused sick leave are remunerated in accordance with the percentage of salary set out in 27.06 a).
f) Disability insurance
If a disability occurs during the leave with deferred pay plan, the following provisions apply:
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If it occurs during the leave, the disability is presumed not to have occurred. If the employee is still disabled at the end of the leave, after exhausting the waiting period they receive disability insurance benefits equal to 80% of the percentage of salary set out in 27.06 a), for as long as they are eligible under the provisions of clause 30.19. If the date of the end of the contract arrives while the employee is still disabled, full disability insurance benefits apply.
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If the disability occurs before the leave is taken, the employee has the following options:
- The employee may continue to participate in the plan, in which case, after exhausting the waiting period, they receive disability insurance benefits equal to 80% of the percentage of salary set out in 27.06 a) for as long as they are eligible under the provisions of clause 30.19.
- If the employee is disabled at the start of their leave and the end of the leave coincides with the time the plan is scheduled to end, they may temporarily discontinue their participation in the plan until the end of the disability. During this period in which their participation is temporarily interrupted, the employee receives full disability insurance benefits for as long as they are eligible under the provisions of clause 30.19 and then begin their leave on the day the disability ends.
- They may suspend participation in the plan. In such a case, the employee, after exhausting the waiting period, receives full disability insurance benefits for as long as they are eligible under the provisions of clause 30.19. Upon returning to work, the employee’s participation in the plan is extended for a period of time equal to the duration of the disability.
If the employee is still disabled at the time the leave is scheduled to begin, they may postpone the leave to a time when they are no longer disabled.
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If their disability occurs after the leave, after exhausting the waiting period the employee receives disability insurance benefits equal to 80% of the percentage of salary set out in 27.06 a) for as long as they are eligible under the provisions of clause 30.19. If the employee is still disabled at the end of the plan, they receive full disability insurance benefits.
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If the employee is still disabled after the time limit in 13.08 2) expires, the contract is terminated and the following provisions apply:
- If the employee has already taken the leave, any salary that was overpaid is not repayable, and one (1) year of service for purposes of participation in the pension plan is recognized for each year of participation in the leave with deferred pay plan.
- If the employee has not yet taken the leave, contributions withheld on their pay are reimbursed without interest and without being subject to contributions to the pension plan.
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Notwithstanding 27.06 f)-2 and 27.06 f)-3, a part-time employee’s contributions to the plan are suspended while they are disabled, and after exhausting the waiting period the employee receives full disability insurance benefits for as long as they are eligible under the provisions of clause 30.19. The employee may then exercise one of the following options:
- They may suspend participation in the plan. Upon returning to work, their participation is extended for a period of time equal to the duration of the disability;
- If the employee does not wish to suspend participation in the plan, the period of disability is then deemed to be a period of participation in the plan for the purposes of applying 27.06 q).
For the purposes of applying 27.06 f), an employee who is disabled by an employment injury is deemed to be receiving disability insurance benefits.
g) Leave without pay or absence without pay
For the duration of the deferred pay plan, employees’ participation is suspended when they are on leave or on an absence without pay. Upon their return to work, their participation is extended by a period of time equal to the duration of the leave or the absence. In the case of part-time leave without pay, for any time worked, employees receive what they would be paid if they were not participating in the plan.
However, any leave without pay or absence without pay of one (1) year or more, with the exception of that provided in clause 25.27, amounts to a withdrawal from the plan, and the provisions of 27.06 n) apply.
h) Leave with pay
For the duration of the deferred pay plan, leave with pay that is not mentioned in this Article is paid in accordance with the percentage of salary set out in 27.06 a).
Leave with pay occurring during the period of leave is deemed not to have been taken.
i) Floating days off
During the leave, an employee is deemed to be accumulating service for the purposes of floating days off.
For the duration of the deferred pay plan, floating days off are paid in accordance with the percentage of salary set out in 27.06 a).
If the length of leave is one (1) year, the employee is deemed to have taken the annual quantum of floating days off to which they are entitled. If the leave is for less than one (1) year, the employee is deemed to have taken the annual quantum of floating days off to which they are entitled, prorated to the length of the leave.
j) Maternity, paternity or adoption leave
If the maternity leave occurs during the contribution period, participation in the leave with deferred pay plan is suspended. Upon the employee’s return to work, participation is extended for a maximum of twenty-one (21) weeks. During this maternity leave, benefits are determined on the basis of the salary that the employee would have been paid if they were not participating in the plan.
If the paternity or adoption leave occurs during the contribution period, participation in the leave with deferred pay plan is suspended. Upon the employee’s return to work, participation in the plan is extended for a maximum of five (5) weeks. During this paternity or adoption leave, benefits are determined on the basis of the salary that the employee would have been paid if they were not participating in the plan.
k) Protective leave
For the duration of the deferred pay plan, an employee’s participation is suspended if they take protective leave. Upon the employee’s return to work, participation is extended by a length of time equal to the duration of the protective leave.
l) Professional development
For the duration of the deferred pay plan, an employee’s participation is suspended if they benefit from leave for professional development purposes. Upon the employee’s return to work, participation is extended for a period of time equal to the duration of the leave.
m) Layoff
If an employee is laid off, the contract is terminated on the date of the layoff and the provisions of 27.06 n) apply.
The employee does not, however, lose any rights with respect to the pension plan. Thus one (1) year of service is credited for each year of participation in the leave with deferred pay plan, and the salary amount that was not paid out is reimbursed without interest and without being subject to contributions to the pension plan.
An employee who is laid off and benefits from job security under clause 15.03 continues to participate in the leave with deferred pay plan as long as they are not reassigned to another institution by the provincial workforce service (SNMO). Once this is done, the provisions of the two (2) preceding paragraphs apply to such an employee. However, an employee who has already taken the leave continues to participate in the leave with deferred pay plan with the employer to whom they are reassigned by the SNMO. An employee who has not yet taken the leave may continue to participate in the plan, providing that the new employer accepts the terms of the contract or that the employee can agree with the new employer on other dates for taking the leave.
n) Breach of contract due to termination of employment, retirement, withdrawal or expiry of the seven (7)-year time limit on the duration of the plan or the six (6)-year time limit for the start of the leave
- If the leave has been taken, the employee must reimburse, without interest, the salary received during the leave prorated to the period of time remaining in the plan in relation to the contribution period.
- If the leave has not been taken, the employee is reimbursed an amount equal to the contributions withheld on their pay up until the date of the breach of contract (without interest).
- If the leave is in progress, the amounts owed by either party are calculated as follows: the amount received by the employee during the leave minus the amounts already deducted from the employee’s earnings in fulfilment of the contract. If the balance is negative, the Employer reimburses it to the employee (without interest); if the balance is positive, the employee reimburses it to the Employer (without interest).
For the purposes of the pension plan, the pension credits that are recognized are what would have been credited if the employee had never participated in the leave with deferred pay plan.
Thus, if the leave has been taken, contributions paid during the leave are used to compensate for the missing contributions for years worked, with a view to making up the pension discrepancies for that period; the employee may, however, buy back the lost period of service on the same conditions as for leave without pay under the Act respecting the Government and Public Employees Plan (CQLR, c. R-10), the Teachers Pension Plan (CQLR, c. R-11) and the Public Sector Superannuation Plan (CQLR, c. R-12).
Moreover, if the leave has not been taken, the missing contributions needed to credit the total number of years worked are deducted from the reimbursement of contributions withheld on pay.
o) Breach of contract due to the employee’s death
If an employee dies while a leave with deferred pay plan is in effect, the contract ends on the date of the employee’s death and the following provisions apply:
- if the employee had already taken the leave, the contributions withheld from pay are not payable and one (1) year of service for purposes of participation in the pension plan is recognized for each year of participation in the leave with deferred pay plan;
- if the employee had not already taken the leave, the contributions withheld from pay are reimbursed without interest and without being subject to contributions for pension plan purposes.
p) Dismissal
If an employee is dismissed while a leave with deferred pay plan is in effect, the contract ends on the date the dismissal becomes effective. The conditions set out in 27.06 n) apply.
q) Part-time employee
Part-time employees may participate in a leave with deferred pay plan. However, they can only take the leave after completing the contribution period.
Furthermore, the salary that such an employee receives during the leave is based on the average number of hours worked, excluding overtime, during the years of participation preceding the leave.
Fringe benefits under clauses 38.03 and 38.04 are calculated and paid on the basis of the percentage of salary set out in 27.06 a).
r) Change of status
An employee whose status changes during their participation in a leave with deferred pay plan may exercise one of the following options:
- they may end the contract, on the conditions set out in 27.06 n);
- they may continue to participate in the plan and will then be treated as a part-time employee.
However, a full-time employee who becomes a part-time employee after taking the leave is deemed to still be a full-time employee for the purposes of determining their contribution to the leave with deferred pay plan.
s) Group insurance plans
During leave, employees continue to benefit from the basic life insurance plan and may maintain coverage under the insurance plans by paying all the necessary contributions and premiums themselves, in accordance with the clauses and stipulations of the insurance contract in force.
However, subject to the provisions of clause 30.16, participation in the basic health insurance plan is mandatory, and employees must pay all the necessary contributions and premiums themselves.
While the plan is in effect, the insurable salary is that provided in 27.06 a). However, an employee may maintain an insurable salary based on what they would be paid if they were not participating in the plan, by paying the extra part of the applicable premiums.