CapitalCare Collective Agreement 2020-2024

LETTER OF UNDERSTANDING #2

BETWEEN

CapitalCare
(hereinafter referred to as the Employer)

-and-

HEALTH SCIENCES ASSOCIATION OF ALBERTA 
(hereinafter referred to as the Union)

RE:  SEVERANCE
 

1. Where organizational changes result in the permanent reduction in the number of Regular Employees in the bargaining unit and a Regular Employee has received layoff notice in accordance with Article 30 (Layoff and Recall), and for whom no alternate vacant position is available, the Regular Employee shall have the option to select either:
   1. layoff with recall rights as specified in Article 30 of the Collective Agreement; or
   2. severance as offered by the Employer in accordance with this Letter of Understanding.
2. Severance pay for eligible Regular Employees, as defined in Article 2.08(a) of this Collective Agreement, shall be based upon the following:
   1. A Regular Full-Time Employee shall be eligible for severance pay in the amount of two (2) weeks regular pay for each full year of continuous employment to a maximum of forty (40) weeks pay.
   2. A Regular Part-Time Employee shall be eligible for severance pay in the amount of two (2) weeks’ full-time pay for each full period of one thousand eight hundred and thirteen point five (1,813.5) hours worked at the Basic Rate of Pay to a maximum of forty (40) weeks’ pay.
   3. Regular pay shall be defined as regularly scheduled hours of work as at the date on which notice of layoff is issued (which for the purpose of clarity means regularly scheduled hours of work exclusive of overtime hours, call-back hours and additional hours for Part-Time Employees) X Basic Rate of Pay (which for the purpose of clarity means Basic Rate of Pay exclusive of overtime payments and premium payments).
   4. For the purposes of severance, continuous employment will be calculated from the last date of hire recognized with this Employer. 

3. A Regular Employee who receives notice of layoff shall have fourteen (14) calendar days from the date the notice of layoff is issued to advise the Employer, in writing, that the Employee wishes to take the severance option offered by the Employer.  Any Employee who does not advise the Employer, in writing of the Employee's decision to accept severance shall be deemed to have selected layoff in accordance with Article 30 (Layoff and Recall).

4. A Regular Employee, who accepts severance pay as described in this Letter of Understanding, shall have terminated their employment in all respects, with no further rights to recall.

5. An Employee who has been terminated for just cause or who has resigned or who is already on layoff or has retired shall not be eligible for severance.

6. Regular Employees who select severance will not be eligible for rehire by any Employer who is party to a Collective Agreement containing a Severance provision, or any Employer or agency funded directly or indirectly by the Employer paying the severance, for the period of the severance (which for the purpose of clarity means the period of time equal to the number of weeks of severance paid to the Employee).

7. The Employee may be considered for hire by anEmployer referred to in the paragraph above provided they repay the Employer from whom severance was received, the difference, if any between the time they were unemployed and the length of time for which the severance was paid.

8. Severance pay provided under this Letter of Understanding shall be deemed to be inclusive of any and all legislative requirements for termination notice.

9. This Letter of Understanding shall apply over a period of time beginning on the date on which the parties exchange notice of ratification for this Collective Agreement and ending March 31, 2024, or upon the date of ratification of the next Collective Agreement, whichever is later.