Alberta Health Services Collective Agreement 2020-2024

LETTER OF UNDERSTANDING #2

BETWEEN

ALBERTA HEALTH SERVICES
(hereinafter referred to as the Employer)

- and -

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

RE: SEVERANCE

1.  

   1. Severance will be offered as a result of organizational changes that result in the permanent reduction in the number of Regular Employees in the bargaining unit.

   2. Notwithstanding paragraph 1(a) above, severance shall not be offered where the permanent reduction in the number of Regular Employees in the bargaining unit occurs as a result of a Regular Employee’s position moving or being moved into a different functional bargaining unit.

2.  

   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 purposes of severance, continuous employment will be calculated from the last date of hire recognized with the Employee's current Employer.

3. A Regular Employee who has received layoff notice in accordance with Article 30.01 and for whom no alternate vacant position is available within a fifty (50) kilometre radius of their Site, shall have the option to select either of:

   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.

4. A Regular Employee who accepts severance pay, shall have terminated their employment, with no further rights to recall.

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

6. A Regular Employee who receives notice of layoff shall have twenty-eight (28) 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 of this Collective Agreement.

7.  

   1. Employees who select severance will not be eligible for:

      1. continued employment with the Employer, or

      2. rehire by any Employer who is a party to a Collective Agreement containing this provision, or 

      3. rehire by 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).

   2. The Employee may be considered for hire by an Employer referred to in 7(a) 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.

This Letter of Understanding will expire March 31, 2024, or upon the date of ratification of the next Collective Agreement, whichever is later.