Leave with Income Averaging
Leave with income averaging (LIA) is a special working arrangement approved by a Section 34 Manager based on operational requirements. Eligible employees are able to reduce the number of weeks worked in a specific 12-month period by taking either one (1) or two (2) periods of leave without pay. Each period of leave must be at least five (5) weeks in duration and the total combined leave cannot exceed three (3) months. The total salary cost of the unpaid leave period(s) is calculated and the employee's bi-weekly pay reduced over the specified period to reflect the hours not worked.
Premiums for benefit coverage and pension contributions continue at prearrangement levels. Employees continue to be subject to the provisions of their Collective agreement and Terms and Conditions of Employment and their employment status remains unchanged during the working arrangement, therefore there is no requirement to report when an employee returns to work after the leave period.
Refer to the Directive on Leave and Special Working Arrangements - Appendix D for full details on this arrangement.
It is important to start this process as early as possible or at least six (6) weeks prior to the start of the selected 12-month period to avoid overpayment situations and delays in processing your request.
Once your LIA application is approved by your manager and sent to the Pay Centre for processing, the arrangement may only be modified or cancelled in exceptional and unforeseen circumstances, by written request and with reasonable notice.
Managers should avoid approving additional day(s) of LWOP during the LIA averaging period to minimize overpayment or no pay situations for the employee.
Employee Responsibilities
- Complete and sign the Application for Leave with Income Averaging (TBS 325.10E) form, noting the following requirements:
- Part I: Ensure all employee data matches your MyEMS(PeopleSoft) profile.
- Part II: Clearly indicate the dates / # of weeks for each period of leave requested, sign and date the form
- Part III: leave blank, this will be completed by the Pay Centre
- Part IV: Clearly indicate the dates for the 12 month averaging period
- Once completed, forward to your Manager/Section 34 Manager for approval.
- Complete and sign the Application for Leave with Income Averaging (TBS 325.10E) form, noting the following requirements:
Manager/Section 34 Manager Responsibilities
- Approve and sign Part IV of the employee's application and open a request via the HRSC Portal:
- Section: I am a Manager;
- Select "Pay-Related Action"
- Complete the Employee Information section
- Category: Select "Leave"
- Sub-Category: Select "Leave with Income Averaging (LIA)"
- Effective date: Start date of the 12-month averaging period;
- Comments: Include any additional comments.
- Attach the completed LIA application;
- Submit your request
Note: There is no need to complete a Pay Action Request (PAR) form. This will be done by the Compensation Services Directorate when the request is sent to the Pay Centre for processing.
- Approve and sign Part IV of the employee's application and open a request via the HRSC Portal:
Submit a Pay Escalation Request
Employee responsibility
If you are experiencing a pay issue related to your LIA, you must refer to the Pay Escalation Process and, if deemed appropriate, submit an escalated pay issue request using the category Escalated leave issue, sub-category Leave with Income Averaging (LIA).
Manager / Section 34 Manager responsibility
If an employee is on leave or has been terminated and is experiencing a pay issue related to their LIA, submit an escalated pay issue request on their behalf using the category Escalated leave issue, sub-category Leave with Income Averaging (LIA).