PSMA Background

The Public Service Modernization Act (PSMA) received Royal Assent in November 2003, with a majority of implementation beginning in 2005. The PSMA was described as "the single biggest change to public service human resources management in more than 35 years". It was developed in response to recognition that people management practices in the federal public service had become inflexible in an environment of rapid change and growing complexity.

The Act was intended to transform practices relating to hiring, managing, and supporting public service employees. Specifically, the Act made concrete changes to processes for people management in order to facilitate hiring the right people, to promote more collaborative labour-management relations, to increase the focus on learning and training at all levels, and to clarify roles and responsibilities.

As an omnibus statute, the PSMA introduced or amended four key pieces of legislation:

• A new Public Service Employment Act, which addresses staffing and political activities (came into force December 31, 2005)
• A new Public Service Labour Relations Act, which addresses labour relations (April 1, 2005)
• An amended Financial Administration Act, which addresses accountability (April 1, 2005)
• An amended Canadian Centre for Management Development Act that created the Canada School of Public Service which addresses learning and development (April 1, 2004)