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Deferred salary leave policy

1. Scope

This policy applies to all regular non-academic staff, hired without term. It does not apply to University Executives (“E”).


2. Policy

A deferred salary leave allows an employee to have their salary spread out over given period of time, in order to benefit from a deferred salary leave period. It includes, on the one hand, a contribution period by the employee and, on the other hand, a leave.

2.1. Definitions

For the purposes of this policy, the following definitions apply:

"Period of contract"

is the total time during which the salary is deferred, including the period of deferral and the period of leave but excluding any period of suspension provided for in this policy.

"Contract"

a written agreement signed by the employee and the University specifying the details of the deferred salary leave, a copy of which is appended to the policy.

“Amount of deferred remuneration"

is that part of the actual remuneration that the University withholds each year on the employee's behalf, in accordance with paragraph 4, increased from time to time, by the interest earned thereon, less all amounts paid under the terms of the deferred salary leave contract.

"Period of deferral"

is the number of years during which the remuneration is deferred, in accordance with paragraph 4.

"Actual remuneration"

is the employee's regular annual remuneration, payable by the University to the employee in accordance with the provisions of the Salary Administration Policy.

"Net remuneration"

is either the employee's actual remuneration, with deductions made for the amounts deferred during the period of deferral, or the amount of deferred remuneration paid to the employee during the deferred salary leave, as the case may be.

"Period of leave"

is the number of months during which the employee is on leave in accordance with the contract.

The contract period can be of two (2), three (3), four (4) or five (5) years. During the period of the contract, the employee is not eligible for the unpaid leave of absence provided for in the Unpaid Leave of Absence Policy.

The length of the period of leave can be either six (6), nine (9) or twelve (12) months' duration.


3. Eligibility for a deferred salary leave

In order to be eligible for a deferred salary leave, an employee must have completed one (1) year of uninterrupted service.

A written request for a deferred salary leave must be submitted to Human Resources (Shared Services) at least four (4) weeks prior to the expected date on which the contract period would begin. This request must indicate the beginning and end dates of the period of deferral and the period of leave.

The granting of a deferred salary leave is contingent upon the conclusion of a contract that shall include notably the dates of the period of deferral and the period of leave.

A decision to grant the leave will be made based on the operational requirements of the University. The University cannot refuse such a leave without valid reason.

An employee who is promoted or transferred to a different unit/department during the period of deferral must obtain approval from the new Department Head for continued participation in the Deferred Salary Leave.

In no case can an employee modify the length of the period of deferral or the period of leave during the course of the deferred salary leave.

The employee may suspend or end the contract in accordance with the provisions of this policy. Upon return from the period of leave, an employee is reinstated into the position that they occupied prior to the commencement of the leave. If the position has been abolished, the provisions of the Employment Security Policy shall apply.


4. Financing of the leave

During the period of contract, the employee receives the percentage of their actual remuneration as set out in the following table:

2 years

3 years

4 years

5 years

6 months

75.00%

83.33%

87.50%

90.00%

9 months

75.00%

81.25%

85.00%

12 months

75.00%

80.00%

The University continues its contribution to the Régime de Rentes du Québec, Employment Insurance, Quebec Health Insurance, the Quebec Parental Insurance Plan and the CSST during the period of the contract. Payment is calculated according to the employee's net remuneration.

The University shall pay to the employee the accrued interest on the amount of deferred remuneration on the following dates:

each December 31 during the period of the contract; and

the last day of the deferred salary leave or on the date of an event which puts an end to the contract before the last day of the deferred salary leave.

The interest paid to the employee must be considered as employment revenue, must be declared on the employee's T4 supplementary income form and is subject to the applicable taxes.

During the period of leave, the employee may continue to participate in those benefits plans which apply to the employee, provided that the employee requests continuation of benefits at the beginning of the leave and pays the total premium.

For the duration of the contract, including the period of leave, vacations are remunerated on the basis of the employee's net remuneration.


5. Short-Term Disability, Long-Term Disability

a) sickness occurs during the period of deferral and continues until the moment the leave is scheduled to occur:

the employee may continue their participation in the deferred salary leave contract and postpone the leave until they are no longer sick. The employee then receives salary continuance on the basis of the employee's net remuneration.

the employee may terminate the contract and thus receive the amount of deferred remuneration. In accordance with the Short-Term Disability Policy, the salary continuance payment is based on the employee's actual remuneration.

in the event that the employee becomes eligible for long-term disability benefits, the contract is terminated and the employee thus receives the amount of deferred remuneration. Long-term disability benefits are based on the employee's actual remuneration.

b) the sickness occurs during the period of leave:

for the purposes of application of the Short-Term Disability Policy, the sickness is deemed not to have occurred during the period of leave. However, the Short-Term Disability Policy does apply retroactively to the date of onset of disability if, at the end of the period of leave, an employee continues to be sick.

The employee is entitled during the period of leave to the amount of deferred remuneration according to the modalities provided for in paragraph 4.

At the end of the period of leave, if the employee is still sick, the employee will then receive salary continuance payments based on their actual remuneration.


6. Occupational Disease and Work Accident

When an occupational disease or work accident occurs, the provisions of the Accident Reporting Policy apply at the date of the event; the employee may then choose one of the following:

interrupt the contract until the employee's return to work; however, the contract terminates after two (2) years of interruption and, within thirty (30) days, the University must remit to the employee the amount of deferred remuneration;

put an end to the contract at the date of the event in which case, within thirty (30) days, the University shall remit to the employee the amount of deferred remuneration.


7. Maternity Leave twenty (20) weeks and Adoption Leave ten (10) weeks

If the maternity or adoption leave occurs before or during the taking of the leave, participation in the deferred salary leave contract is interrupted for a maximum period of twenty (20) weeks, or ten (10) weeks, as the case may be; the contract is then extended by as many weeks.

However, if the maternity or adoption leave occurs before the taking of the leave, the employee can put an end to the contract and, within thirty (30) days, the University must remit to the employee the amount of deferred remuneration.


8. Departure

In the event of an employee's departure due to retirement, resignation, etc., the deferred salary leave terminates on the date of the event. Within thirty (30) days, the University shall remit to the employee the amount of deferred remuneration.


9. Death of the employee

In the event of the employee's death, the University shall, in the thirty (30) days which follow the notification of death to the University, pay the amount of deferred remuneration to the employee's estate, subject to the University receiving the necessary clearances and other proof normally required for payment to an estate.


Effective October 1, 1998

Rev. March 2004

Rev. September 2009

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