This framework is effective as of February 22, 2007.
Compensation is a central component of effective management. There are many diverse and complex factors that must be taken into consideration when addressing compensation issues including private and public sector labour market trends, economic trends, relations with unions, legislation, social policies, federal public administration organizational structures, job classification structure, internal relativity, public policy forums and advisory committees, and public policy to name a few.
In order to help develop a better understanding of these factors, the Public Service Labour Relations Board has received the mandate to provide compensation analysis and research services, including conducting compensation surveys, and make its information and analysis available to the parties and the public.
This framework sets out specific principles and an approach to managing compensation within the federal public administration. The framework guides Treasury Board ministers in their role as financial and human resources managers, set out in section 7 of the Financial Administration Act (FAA). The coverage of the framework includes the specific roles and responsibilities of the Treasury Board in respect of the: core public administration, separate agencies, persons hired under the Royal Canadian Mounted Police Act, the Canadian Forces, and the segment of federal government business enterprises that receive government funding (i.e. appropriation dependent crown corporations). The Treasury Board's responsibilities vary in important ways across these different areas of the federal public administration, as detailed below in the section Roles, Responsibilities and Policy Instruments. The Framework's coverage does not include those employees covered by the Parliamentary Employment and Staff Relations Act.
Compensation serves, with other key frameworks, to attract, retain, motivate and renew the workforce required to deliver results to Canadians.
Compensation decisions by the Treasury Board in its various roles will be guided by four overarching principles:
Government compensation decisions are always made taking into account relevant laws and general public policy. Consequently, the above-mentioned principles are to be balanced against the following considerations:
While the range of Treasury Board responsibilities regarding compensation vary across the different areas of the federal public administration, some of them apply across all areas:
The Treasury Board Secretariat is responsible for compensation planning in the federal public administration, for reporting on compensation and for ensuring that government decisions in the area of compensation are aligned with the principles laid out in the Policy Framework for the Management of Compensation.
The Secretariat is also responsible in its capacity of employer to implement decisions with respect to the core public administration except for decisions related to senior level officials and classification, which are under the responsibility of the Public Service Human Resources Management Agency of Canada. The Secretariat and the Agency are responsible for ensuring that government policies in the area of compensation are aligned with the principles laid out in this Framework.
The Department of Public Works and Government Services Act requires the Department to provide such administrative and other services required for the disbursement of pay, employee benefit plans and Superannuation or pension plans to persons employed in or by any department, and to persons employed in or by other portions of the federal public administration, as the Governor in Council may direct.
The Public Service Collective Agreements Implementation Order delegates to deputy heads the authority to exercise and perform such powers and functions of the Treasury Board as may be required to give effect to and administer the provisions of collective agreements, subject to any direction of the Treasury Board. The responsibilities of the Deputy Heads are specified in the policy documents and in the legislation identified in the policy documents.
Responsibility for the policies under the framework is divided between the Treasury Board Secretariat and the Public Service Human Resources Management Agency of Canada and is specified in the documents outlining the policies. The specific legislative, regulatory and policy instruments that support this framework are set out in Appendix 2.
The Policy Framework for the Management of Compensation is related to the People Policy Framework, Official Languages Policy Framework and the Financial Management Policy Framework. Some of the policies under the People Policy Framework, such as the Organizational Authority and Classification of Executive Positions Policy, have implications on the compensation of employees in the federal public administration. The bilingual bonus included in the Official Languages Policy Framework is also part of the compensation package of employees. In addition, all the applicable policies and directives under the Financial Management Policy framework apply to the administration of the pay process.
Performance indicators, reporting requirements, and compliance mechanisms with respect to the management of compensation, where applicable, are identified in individual policies outlined in Annex II.
Consequences for non-compliance are described in the individual policies underpinning this framework. They range from various corrective measures taken by deputy heads within their organizations to address errors or non-compliance, to the withdrawal of deputy heads' delegated authorities and requirement to repay from their departmental budgets any costs associated with errors or other forms of non-compliance with the existing policies.
Responsibility for this policy framework is vested with the Treasury Board of Canada Secretariat. Responsibility for the policies under the framework is divided between the Treasury Board Secretariat and the Public Service Human Resources Management Agency of Canada and is specified in the documents outlining the policies.
Please direct enquiries to:
Senior Assistant Secretary
Treasury Board Secretariat
Expenditure Management Sector
L'Esplanade Laurier - Floor: 07E
140 O'Connor Street
Ottawa, Ontario
Canada
K1A 0R5
Telephone: (613) 946-3061
implies total compensation and covers cash and non‑cash remuneration provided to an employee for services rendered, and includes, but is not limited to: