Watch this video to learn how employees will transition to the new pay cycle. The video explains how the change will affect employees who are actively at work as well as those who are on short-term and long-term leave.
More information about the new pay cycle
- In January 2019, the pay cycle will change for full-time employees represented by APOC or PSAC.
- Employees will be paid every two weeks for time they have already worked. Their pay dates will not change.
- To avoid any interruption to their income, employees who are active on December 29, 2018 (i.e. not on long-term leave) will receive a transition payment on January 10, 2019.
- The amount of the transition payment will be very similar to the amount an employee typically receives every two weeks.
- The transition payment will be calculated based on an employee’s basic pay minus typical deductions, such as premiums for the Extended Health Care Plan, Dental Plan, Basic Life, Disability Insurance, Defined Benefit Pension Plan, Defined Contribution Pension Plan, Life and Accident Insurance Plans, Long Term Disability Plan and Voluntary Savings Plan.
- The transition payment will be recovered without interest:
- When the employee leaves Canada Post; or
- If the employee moves into a permanent position in a group not paid on the same cycle.
- Employees who are on long-term leave will not receive a transition payment. When they return from leave, they will be on the new pay cycle, which means they will receive their first pay two weeks after the end of that pay period.
What you need to know
- Moving to a new pay cycle will help make employees’ pay more predictable and will reduce the need for adjustments.
- Overtime and most allowances and premiums are already paid two weeks after they are earned.
- Canada Post agreed to this change with APOC and PSAC in the most recent round of negotiations with each bargaining unit.
- Part-time and temporary employees represented by APOC or PSAC are already on the new pay cycle, as are all employees represented by CUPW-Urban and CUPW-Rural.
- Starting December 3, 2018, every affected employee received a package at home detailing the change. Employees who are actively at work or on short-term leave (STDP or IOD) received this letter, and employees who are on long-term leave received this letter.
What you need to do
- Full-time employees represented by APOC or PSAC do not need to do anything as part of this change.
- Team leaders of full-time employees represented by APOC or PSAC will need to:
- Understand the change to the pay cycle so they can support their employees.
- Submit all requests for employee movement by December 12, 2018 so data is accurate when employees transition to the new pay cycle.
- When running a pay simulation after December 21, 2018, use the new payroll area 07. Refer to instructions on Intrapost under My SAP > My Team.
Frequently asked questions
1. What is the transition payment?
The transition payment on January 10, 2019 will ensure there is no interruption to an employee’s income as they move to the new pay cycle. It will be based on an employee’s basic pay, and will be subject to regular taxes and deductions.
2. Who will receive the transition payment?
All full-time employees represented by APOC or PSAC who are active on December 29, 2018 will receive the transition payment. This includes employees who are on leave under the Short Term Disability Program (STDP) or Injury on Duty (IOD). Full-time employees who are inactive on December 29, 2018 (for instance, on long-term leave) will move to the new pay cycle when they return to work and will therefore not receive the transition payment. Part-time and temporary employees will not receive the transition payment because their pay cycle is not changing.
3. Why does the transition payment need to be recovered?
To avoid interrupting employees’ income, Canada Post will have paid them twice for the same pay period in January: once in the transition payment on January 10 and again on the first pay under the new system on January 24. The amount will be recovered from an employee’s final pay, without interest, when they leave Canada Post or if they move into a permanent position in a group not paid on the same cycle.
4. Can employees refuse the transition payment?
No, employees cannot refuse the transition payment.