Directive on Interchange Canada

This directive details key stakeholders’ responsibilities regarding fair and consistent management of Interchange Canada assignments.
Date modified: 2020-04-01

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1. Effective date

  • 1.1This directive takes effect on April 1, 2020.
  • 1.2This directive replaces the Directive on Interchange Canada dated June 1, 2012.

2. Authorities

  • 2.1This directive is issued pursuant to the same authorities indicated in section 2 of thePolicy on People Management.

3. Objective and expected results

  • 3.1The objective and expected results indicated in section 3 of the Policy on People Management apply to this directive.

4. Requirements

  • 4.1The head of human resources is responsible for the following:
    • 4.1.1Ensuring that processes and procedures are in place for the effective administration of Interchange Canada assignments in their organization;
    • 4.1.2Identifying relevant considerations, in collaboration with other senior officials, with regard to values and ethics, codes of conduct, security, privacy, information technology, information management, legal assistance and indemnification, financial management, occupational health and safety, travel, learning/training, and compensation;
    • 4.1.3Ensuring that employees and managers have access to information, procedures and practices about entering into an agreement and managing an Interchange assignment;
    • 4.1.4Ensuring that employees and managers are made aware that Interchange Canada assignments are subject to review and may be terminated by either party subject to the conditions outlined in the appendix to this directive;
    • 4.1.5Ensuring that all assignment information, including changes to assignment details, is recorded in the systems prescribed by the Chief Human Resources Officer; and
    • 4.1.6Ensuring that participants remain employees of the sponsoring organization and continue to be subject to the terms and conditions of employment applicable to their substantive position.
  • 4.2Managers are responsible for the following:
    • 4.2.1Ensuring that Interchange Canada assignments are authorized by means of a written agreement that complies with the requirements contained in the appendix to this directive prior to the commencement of the assignment;
    • 4.2.2Respecting organizational processes, procedures and considerations when entering into an Interchange Canada agreement;
    • 4.2.3Ensuring that the Interchange Canada agreement is completed, signed by, and provided to the participant;
    • 4.2.4Ensuring that a signed copy of the Interchange Canada agreement is retained by the department, in accordance with the appropriate information management policies and procedures;
    • 4.2.5Ensuring that all assignment information, including changes to assignment details, are recorded in the systems prescribed by the Chief Human Resources Officer;
    • 4.2.6Ensuring that the participant is informed of policies, procedures and considerations applicable during the period of the Interchange Canada assignment, including but not limited to values and ethics, codes of conduct, security, privacy, information technology, information management, financial management, legal assistance and indemnification, occupational health and safety, travel, learning/training, and compensation;
    • 4.2.7Respecting the maximum allowable assignment duration of three consecutive years, whether the assignment takes place in one or more organizations;
    • 4.2.8Respecting the two‑year waiting period in between Interchange Canada assignments, unless it has been waived;
    • 4.2.9Ensuring that the incoming participant possesses the necessary reliability check or security clearance before an assignment starts;
    • 4.2.10Paying for all business expenses, including preliminary candidate interviews, business travel and formal training while the participant is on assignment;
    • 4.2.11Ensuring that all information acquired by incoming participants during an Interchange Canada assignment remains subject to the Security of Information Act and the Policy on Government Security;
    • 4.2.12Ensuring that all records produced by incoming participants or by anyone on their behalf in carrying out any duty related to an assignment remain the property of the Government of Canada and are subject to Crown copyright;
    • 4.2.13Ensuring that an assignment is not undertaken between the core public administration and a minister’s office;
    • 4.2.14Ensuring that prospective Interchange Canada participants:
      • 4.2.14.1Have the skills and abilities to perform the duties of the assignment; and
      • 4.2.14.2Have been employees of the sponsoring organization, including a personal corporation, for a period of at least six months prior to the commencement of the assignment, unless a shorter period of employment is approved;
    • 4.2.15Ensuring that linguistic obligations relating to service to the public and language of work are addressed when participants do not fully meet the language requirements of the function or position;
    • 4.2.16Managing the performance of outgoing executive participants in accordance with the Directive on Talent and Performance Management for Executives;
    • 4.2.17Managing the performance of outgoing non‑executive participants in accordance with the Directive on Performance Management;
    • 4.2.18Regularly communicating with outgoing participants and monitoring their progress and performance throughout the assignment;
    • 4.2.19Facilitating employees’ reintegration into the organization following an Interchange Canada assignment;
    • 4.2.20Ensuring that, while on assignment, participants are not provided additional compensation from the host organization;
    • 4.2.21Authorizing overtime that is to be paid in accordance with the rates of the sponsoring organization;
    • 4.2.22Ensuring that the sponsoring organization continues to pay the participant’s full salary during the assignment. Such payments include any adjustments that occur during the assignment period, employer‑paid benefits and, if applicable, overtime, performance pay and the bilingualism bonus;
    • 4.2.23Ensuring that sponsoring organizations have paid any costs related to workers’ compensation, regardless of who was designated responsible by the applicable provincial or territorial workers’ compensation board;
    • 4.2.24Ensuring that the host organization refunds the sponsoring organization the costs identified in subsection 4.2.22 and that the host organization does not pay compensation directly to a participant;
      • 4.2.24.1For incoming participants who earn more than the total compensation package of the group and level of work they perform, the salary refund should not exceed 125% of the total compensation package for that group and level, unless authorized by the deputy head of the host organization;
    • 4.2.25Ensuring that unused annual leave accumulated by an incoming participant during an assignment may be refunded to the sponsoring organization by the host organization at the end of the assignment;
    • 4.2.26Ensuring that the employer‑paid benefit costs are calculated as a percentage of salary, in accordance with the rates established by the Office of the Chief Human Resources Officer;
    • 4.2.27Ensuring that terminable allowances, retention bonuses, relocation costs and travel expenses are not included in the calculation of total compensation;
    • 4.2.28Ensuring that organizations are not charging fees for managing the administrative requirements of the assignment or the participant;
    • 4.2.29Ensuring that incoming participants from a personal corporation have:
      • 4.2.29.1Obtained private accident insurance, supplementary medical insurance and long‑term disability insurance for the duration of the assignment, before the assignment starts;
      • 4.2.29.2Demonstrated that the sponsoring organization has registered with the Canada Revenue Agency to remit the Goods and Services Tax or the Harmonized Sales Tax, Canada Pension Plan or Quebec Pension Plan premiums, Employment Insurance premiums, and income taxes, as applicable; and
      • 4.2.29.3Provided their most recent statement of earnings;
    • 4.2.30Ensuring that, for audit purposes, assignment documentation for participants from personal corporations, including letters of agreement, addendums and the elements identified in subsection 4.2.29, are retained for six years after the end of the assignment; and
    • 4.2.31Applying the provisions related to relocation, isolated posts and posts abroad when applicable, as provided for in the appendix to this directive.
  • 4.3Employees who participate in an Interchange Canada assignment are responsible for the following:
    • 4.3.1Ensuring that they meet all requirements for eligibility as outlined in this directive prior to the commencement of this assignment;
    • 4.3.2Complying with the Values and Ethics Code for the Public Sector, Part 7 of the Public Service Employment Act, and any codes of conduct that are in effect in their sponsoring organization;
    • 4.3.3Adhering to all of the terms and conditions of their Interchange Canada assignment;
    • 4.3.4Respecting the relevant terms and conditions of their employment and/or collective agreement, legislation, and Treasury Board and departmental policies while on assignment;
    • 4.3.5Respecting the working conditions of the host organization, including working hours, designated holidays, overtime, security requirements, and the scheduling of vacation or unpaid leave;
    • 4.3.6Completing any training required to fulfill the duties of the assignment; and
    • 4.3.7Submitting leave requests and performance management agreements to their sponsoring organization in accordance with departmental policies.
  • 4.4Incoming Interchange Canada participants are responsible for the following:
    • 4.4.1Respecting the principles and intent of the Values and Ethics Code for the Public Sector, the Policy on People Management and any organizational codes of conduct;
    • 4.4.2Protecting and managing government records and other sensitive information stored on devices and transmitted across external networks;
    • 4.4.3Keeping government property and information safe and secure at all times;
    • 4.4.4Informing their host manager immediately in the event that any information or Crown assets are lost, stolen or damaged; and
    • 4.4.5Returning all government property and material, whether classified or unclassified, at the end of an assignment.

5. Roles of other government organizations

  • 5.1The roles of other government organizations in relation to this directive are described in section 5 of the Policy on People Management.

6. Application

  • 6.1This directive applies to the employees and organizations listed in section 6 of the Policy on People Management.
  • 6.2Subsection 4.4 applies to incoming participants, regardless their employer.
  • 6.3The appendix to this directive, the Standard on the Administration of Interchange Canada, applies to all incoming and outgoing assignments.

7. References

8. Enquiries

Appendix: Standard on the Administration of Interchange Canada Assignments

A.1 Effective date

  • A.1.1This standard takes effect on April 1, 2020. 

A.2 Standards

  • A.2.1This standard provides details on the requirements set out in section 4 of the Directive on Interchange Canada.
  • A.2.2Standards are as follows:

Letter of agreement

  • A.2.2.1A letter of agreement must be bilingual, unless otherwise agreed to by all parties or if the sponsoring and host organizations are located within a unilingual region;  
  • A.2.2.2A letter of agreement must specify at a minimum the following:
    • A.2.2.2.1That the participant is an employee of the sponsoring organization and will remain so throughout the assignment, including if the sponsoring organization is a personal corporation;
    • A.2.2.2.2That the participant will return to a position in the sponsoring organization;
    • A.2.2.2.3The start and the end date of the assignment;
    • A.2.2.2.4The compensation amounts to be refunded to the sponsoring organization by the host organization;
    • A.2.2.2.5The terms and conditions of the assignment;
    • A.2.2.2.6That the assignment is subject to review and may be terminated at any time prior to the end specified in the letter of agreement if agreed to in writing by all signatories or with at least 30 calendar days’ notice to all parties from one of the signatories;
    • A.2.2.2.7That after an assignment has already started, any changes to the terms and conditions in the letter of agreement shall be confirmed through an addendum to the letter of agreement, which must be signed by all parties;
    • A.2.2.2.8That an assignment may be temporarily interrupted for a specific period of time, with the written agreement of all parties, and that the remainder of the assignment can be postponed until the participant returns to work;

Relocation

  • A.2.2.3When approved by the manager:
    • A.2.2.3.1Outgoing non‑executive participants may receive relocation assistance, from the sponsoring organization, up to the full amount of benefits available for assignments of more than one year and less than three years set out in the NJC Relocation Directive, even when the duration of the assignment is less than one year;
    • A.2.2.3.2Outgoing executive participants may receive additional relocation assistance, from the sponsoring organization, in accordance with the Directive on Terms and Conditions of Employment for Executives, except for benefits relating to the sale and purchase of property;
  • A.2.2.4Host organizations may refund relocation expenses for incoming participants for assignments of more than one year and less than three years and may use as a reference either the relocation provisions established by the sponsoring organization or the provisions of the NJC Relocation Directive;

Isolated posts and posts abroad

  • A.2.2.5Outgoing participants who receive benefits and allowances because their position is located in an isolated post may continue to receive those benefits and allowances as specified in the Isolated Posts and Government Housing Directive;
  • A.2.2.6Participants whose Interchange Canada assignment is in an isolated post may receive the allowances and benefits as specified in the Isolated Posts and Government Housing Directive;
  • A.2.2.7Outgoing participants on international assignments may be entitled to receive the benefits and allowances as specified in the Foreign Service Directives, specifically FSD 3 – Application; and
  • A.2.2.8Incoming participants may receive allowances and benefits as specified in the Foreign Service Directives, specifically FSD 3 – Application, for assignments that involve working outside Canada and their home country.

© His Majesty the King in Right of Canada, represented by the President of the Treasury Board, 2017,
ISBN: 978-0-660-26345-8

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