Archived - Directive on Interchange Canada

4.1.1  A prospective Interchange Canada participant:

1. Has been an employee of a sponsoring organization or a personal corporation for a period of six months prior to the commencement of the assignment;
2. Has the requisite competencies to meet the operational and organizational requirements of the assignment;
3. Is not in a conflict of interest as a result of the assignment;
4. Agrees to the time-limited nature of the assignment;
5. Remains an employee of the sponsoring organization throughout the assignment; and
6. Meets all other program requirements.

4.1.2  Persons who are neither employees of an organization nor employees of personal corporations cannot participate in Interchange Canada assignments. An incoming participant is either an employee of an organization or an employee of a personal corporation.

4.1.3  In addition to the criteria specified in 4.1.1 and 4.1.2, a participant who is an employee of a personal corporation:

4.1.4  Ministerial staff members cannot participate in Interchange Canada assignments. Employees cannot use Interchange Canada to take assignments as ministerial staff.

4.2.1  Bringing participants who are employees of personal corporations on assignment is considered an exceptional circumstance to meet critical corporate business objectives where unique competencies are unavailable within the core public administration. This is a temporary skills-building strategy while internal competencies are developed within the context of human resources plans.

4.2.2  Departments retain documents on assignments of participants from personal corporations, for audit purposes, for a period of six years after the end of the assignment.

4.3.1  An assignment may last up to three consecutive years, whether the assignment takes place in one or more organizations. In exceptional circumstances, an extension of up to an additional year beyond the three consecutive years can be obtained upon approval of the deputy head. At the end of the assignment, the participant returns to his or her sponsoring organization.

4.3.2  There is a minimum period of two years before a former participant may participate again in Interchange Canada.

4.3.3  An assignment may be concluded earlier than the agreed-to end date by written notice from any of the parties to the Letter of Agreement. The notice period is at least one calendar month, regardless of the agreed-to duration of the assignment. At the discretion of the deputy head, the participant may receive pay in lieu of the one calendar month's notice.

4.4.1  A Letter of Agreement is in place prior to the commencement of an assignment.

4.4.2  Changes to the terms and conditions of the Letter of Agreement, such as extensions to the end date, are confirmed in the Addendum to the Agreement.

4.4.3  The Letter of Agreement and Addendum to the Agreement are fundamental to setting out the responsibilities of participating parties - that is, the sponsoring organization, the participant and the host organization.

4.4.4  The required content and format for the Letter of Agreement is explained in section 4.4.5. Organizations are to follow the templates provided by the Office of the Chief Human Resources Officer (OCHRO) at the Treasury Board of Canada Secretariat (TBS).

4.4.5  The Letter of Agreement, at a minimum:

For incoming participants, includes a statement concerning the participant's obligations under the Values and Ethics Code for the Public Service and the obligation to refrain from engaging in any political activity that may impair, or be perceived as impairing, the participant's ability to perform his or her duties in a politically impartial manner, or otherwise diminish the principle of political impartiality in the public service;

• d. Includes a statement that the participant is an employee of the sponsoring organization and will remain so throughout the assignment;
• e. Details the compensation amounts to be invoiced or refunded by organizations;
• f. Stipulates how official language requirements will be met in the case of a unilingual participant in a bilingual position;
• g. Includes an end date and a notice period of at least one calendar month, or discretionary pay in lieu of the one calendar month's notice if the assignment is to terminate prior to the end date;
• h. Sets out the information that the parties agree to make publicly available;
• i. Includes a provision for the host organization to document payments for authorized overtime or to report leave on a monthly or quarterly basis;
• j. Includes planned extended vacation, cash-out leave, unpaid leave, and/or human rights-related accommodation as negotiated at the outset of the assignment; and
• k. Includes the following statement: "The (name of the sponsoring organization) will ultimately be responsible for any workers' compensation-related costs, regardless of who was designated responsible by the applicable provincial or territorial workers' compensation board."

4.4.6  For incoming participants, the Letter of Agreement also includes a clause that the participant will abide by various legislative, regulatory, policy and other relevant provisions (e.g. the Official Languages Act, intellectual property rights and the Security of Information Act).

4.4.7  For incoming and outgoing participants, the Letter of Agreement states the approach to performance evaluation. Where performance or variable pay is concerned (e.g., the Executive Group), the host organization prepares a written performance evaluation in collaboration with the sponsoring organization, according to the sponsoring organization's specifications.

4.4.8  The Letter of Agreement for all assignments, at a minimum:

1. Is bilingual, unless signatures are from one official language group and within a unilingual region; and
2. Is prepared in triplicate, signed by the parties or their representatives prior to the commencement of the assignment and provided to each party. Parties include the deputy head or authorized representative, an equivalent-level executive from the outside organization, and the participant.

4.5.1  Prior to entering into an international assignment, it is the participant's responsibility to ensure the following:

1. Work Permits and Immigration Documents: Participants and family members, if applicable, obtain immigration documents and work permits from the appropriate authorities of the country of the sponsoring organization prior to the departure date.
2. Health Coverage: Participants and family members should ensure proper health insurance coverage during their stay outside the country of their sponsoring organization.
3. Income Tax Liabilities: For information on income tax liability, dual taxation and superannuation for participants planning to work outside of Canada, the Canada Revenue Agency, International Tax Services Office, can be contacted at 1-800-267-5177.

4.6.1  Organizations cannot charge fees for managing the administrative requirements of the assignment or participant.

4.6.2  The compensation package is clearly explained to participants prior to the commencement of the assignment to ensure complete understanding of, and agreement to, entitlements and procedures.

4.6.3  During the assignment, the sponsoring organization continues to pay the participant's full salary and pre-existing benefits, except as outlined in Section 4.16 of this Directive. All other terms and conditions of the participant's substantive position in the sponsoring organization apply, such as any adjustments that accrue during the assignment period. For incoming participants, unused annual leave accumulated during the assignment may be paid to the sponsoring organization by the host organization at the end of the assignment.

4.6.4  The host organization refunds to the sponsoring organization the cost of the participant's full salary, employer-paid benefit costs (i.e., of the sponsoring organization), overtime and, if applicable, performance pay and benefits such as the bilingual bonus. The sponsoring organization, in turn, pays the participant. Host organizations do not pay compensation directly to participants.

4.6.5  The employer-paid benefit costs are calculated as a percentage of salary. The current figure used for outgoing participants is 26.43%.

4.6.6  Participants are subject to the working conditions of the host organization, such as working authorized overtime or taking vacation or unpaid leave where operational requirements permit. Overtime is to be authorized and paid in accordance with the sponsoring organization's rates. The host organization provides reports of leave or overtime to the sponsoring organization on a monthly or quarterly basis.

4.6.7  Host organizations are responsible for all business expenses, such as preliminary candidate interviews, business travel and formal training while on assignment.

4.6.8  A participant is entitled to reasonable sick leave. In the event of extended sick leave, the remaining portion of the assignment can be postponed, with the agreement of all parties, until the participant returns to work.

4.7.1  Terminable allowances and retention bonuses are not included in the calculation of salary. One-time benefit costs, such as relocation or travel expenses, are also not part of the calculation of total compensation.

4.7.2  If an incoming participant earns more than the total compensation package for the position that he or she is assigned to, the host organization is authorized to pay up to 125% of the total compensation package for that position, to be refunded to the sponsoring organization. The total compensation package is calculated using the equivalent amount a public servant would be entitled to in the same position.

4.7.3  If the salary of an incoming participant is less than the minimum salary rate of the position or function in the host organization, the deputy head or authorized representative may authorize a refund to the sponsoring organization up to the maximum salary rate. This would be conditional on the sponsoring organization agreeing to this arrangement. If there is agreement, the sponsoring organization would be required to increase the salary rate for its employee to the agreed-to level. The same would apply if the incoming participant's salary rate fell within the range but was not at the maximum salary range. The percentage of the employer-paid benefits would be applied to the negotiated salary.

4.8.1  While on assignment, participants on outgoing assignments remain at their substantive group and level and cannot receive additional compensation from the host organization, such as acting pay or a "top-up" of salary.

4.9.1  Sponsoring and host organizations are responsible for jointly determining the cycle for performance management and reporting format, collection and distribution to appropriate parties.

4.9.2  To determine performance pay (in-range movement and variable pay) for outgoing participants, participants are responsible for establishing a written performance agreement with the host organization at the beginning of each performance cycle. The agreement documents performance expectations by distinguishing between ongoing and key commitments for the assignment, performance measures, and results to be achieved during the cycle. The host organization provides the sponsoring organization with a copy of the performance agreement and a written evaluation of the participant's performance based on the agreement, within 30 days of the end of the performance cycle, the assignment or as otherwise arranged.

4.10.1  The details of how the refund takes place should be negotiated at the outset and be reflected in the Letter of Agreement. A copy of the agreement should be provided to the appropriate organization's finance officer to ensure the timely refund of the compensation package.

4.10.2  Consistent with section 39 of the Financial Administration Act,when an outside organization submits a cheque for the Receiver General for Canada to a department named in Schedule I or a portion of the federal public administration named in Schedule IV of the Act, the cheque is to be deposited into the Consolidated Revenue Fund. The salary portion is to be credited to the sponsoring manager's budget and the benefits portion to non-tax revenue.

4.11.1  Except for an employee of a personal corporation, the work that an employee provides to the host organization while on assignment is not considered the supply of a service under the Excise Tax Act. In other words, the employee is not performing services as a person in business on his or her own account. A participant remains an employee of the sponsoring organization while on assignment. The host organization refunds the sponsoring organization for the salary and benefits that the sponsoring organization pays to the employee on assignment. GST/HST is not part of the compensation package that a sponsoring organization is providing to an employee. The host organization should not be asked to refund GST/HST to the sponsoring organization.

4.11.2  The host organization may have to refund GST/HST to a personal corporation for the work that an employee of that personal corporation provides while on assignment, if it is determined by the Canada Revenue Agency that the work is a taxable supply of a service under the Excise Tax Act. A host organization may also have to refund a sponsoring organization for the GST/HST paid as part of expenses incurred for the relocation of a participant.

4.12.1  Employees who participate in outgoing assignments continue to be subject to the Values and Ethics Code for the Public Service as a condition of their employment in the core public administration and continue to be subject to Part 7 ("Political Activities") of the Public Service Employment Act. Incoming participants are required to respect the principles and intent of the Code and to refrain from engaging in any political activity that may impair, or be perceived as impairing, the participant's ability to perform his or her duties in a politically impartial manner, or otherwise diminish the principle of political impartiality in the public service.

4.12.2  For both incoming and outgoing assignments, parties to the agreement ensure before entering into an agreement that there is not a conflict of interest as defined in the Values and Ethics Code for the Public Service.

4.12.3  If the parties, and ultimately the deputy head, assess that there is a real, apparent or potential conflict of interest prior to or during the assignment, or on the participant's return to the sponsoring organization, necessary action is taken to address the conflict or a decision is made not to proceed with the assignment. Parties ensure that participants do not take advantage of their assignment at its conclusion in such a manner as to cause conflict.

4.12.4  Organizations are responsible for ensuring that participants on incoming assignments are aware of their responsibilities under the Values and Ethics Code for the Public Service. These responsibilities include reporting all outside activities, assets, and direct and contingent liabilities that might give rise to a conflict of interest with respect to their assignment, and completing the appropriate forms dealing with conflict of interest. Organizations are responsible for reminding employees on outgoing assignments of their continuing obligations under the Values and Ethics Code for the Public Service.

4.13.1  Incoming participants are to return all loaned government property, such as technological equipment, to the host organization at the conclusion of the assignment, and obtain written confirmation of its return. All material supplied to the participant, whether classified or unclassified, is to be returned to the host organization at the conclusion of the assignment. The manager in the host organization that is a signing party to the Letter of Agreement is responsible for ensuring the return of all loaned government property and obtaining a written confirmation of its return.

4.13.2  All records produced by the incoming participant, or by anyone on his or her behalf, in carrying out any duty related to an assignment remain the property of the Government of Canada and are subject to Crown copyright. All information that the incoming participant has acquired in the course of the assignment remains subject to the Security of Information Act and the Government Security Policyafter the conclusion of the assignment.

4.14.1  Treasury Board delegates to deputy heads the authority to extend to incoming participants who are required to travel in the performance of their duties during their assignment reimbursements in accordance with the employee provisions of the National Joint Council's Travel Directive,except for those provisions found under Part V - Emergencies, illnesses, injuries and death while on travel status - and for access to government travel cards, and in accordance with the Special Travel Authorities.

4.15.1   Incoming participants may be eligible for refund of relocation expenses and may wish to refer to the following Web page for additional information: http://publiservice.tbs-sct.gc.ca/hr-rh/gtla-vgcl/irpdp-pripf-eng.asp..

4.15.2  Costs associated with the purchase or sale of a principal residence are not reimbursable, because the assignment is temporary.

4.15.3  Relocation costs should be clearly explained to participants prior to the commencement of the assignment to ensure complete understanding of entitlements and procedures. The expenses that will be refunded should be detailed in an annex to the Letter of Agreement.

4.16.1  The National Joint Council's Isolated Posts and Government Housing Directive applies to employees in:

1. Departments and other portions of the Public Service of Canada listed in Schedules I and IV of the Financial Administration Act.
2. Any employer listed in Schedule V of the Financial Administration Act, who is a member of the National Joint Council and has opted to follow this Directive.

4.16.2  Participants who receive isolated post allowances because their substantive position is located in an isolated post, continue to receive these allowances while on assignment, regardless of the location of the host organization provided that they are still maintaining a household or dependants in the isolated post.

4.16.3  Participants who do not receive isolated post allowances because their substantive position is with a sponsoring organization in a location other than an isolated post are not eligible to receive these allowances while they are on an Interchange Canada assignment, even if the host organization is located in an isolated post.

4.17.1  Participants on outgoing international assignments are entitled to the benefits in the National Joint Council's Foreign Service Directives (FSDs). However, to facilitate accessibility to international assignments, an outgoing participant may in consultation with the appropriate bargaining agent, if applicable, and with the written agreement of the deputy head, waive entitlements to any or all provisions of the FSDs.

4.17.2  The FSDs also apply to incoming participants for assignments that involve working outside of Canada and their home country.

4.18.1  Although incoming participants do not meet the criteria of "Crown Servants" as defined in the Policy on Indemnification of and Legal Assistance for Crown Servants, the provisions of that Policy are hereby extended to incoming participants as if they were Crown Servants while they are in the process of carrying out duties for or on behalf of the Crown.

4.18.2   The Policy on the Indemnification of and Legal Assistance for Crown Servants does not apply to Crown Servants while they are on outgoing assignments. It is expected that the host organization will provide the participant with legal services and will indemnify them with regard to acts or omissions arising out of their assignment to the host organization. Should the host organization fail to confirm in the letter of agreement that it will so provide, then the participant proceeds on the assignment at his/her own risk.

4.19.1  Reliability checks and security clearances are the responsibility of the organization receiving the participant. For incoming participants, such checks and clearances are done in accordance with applicable Treasury Board security policies and publications.

4.19.2   Incoming participants are bound by section 4 of the Security of Information Actwith respect to the wrongful communication of information.

4.19.3   A comparable form of confidentiality and security may exist in organizations outside of departments named in Schedule I or other portions of the federal public administration named in Schedule IV of the Financial Administration Act. As a result, an employee on an outgoing assignment may need to undertake a commitment to secrecy or to accept limitations on publication in accordance with the host organization's policies and practices.

4.20.1  Organizations are encouraged to consult with the various specialists when specific situations arise and where prior experience is beneficial in addressing options.

• Within an organization, these specialists can include thehost manager; the Interchange Canada liaison officer; officers for values and ethics; the classification officer, compensation officer, or finance officer (who are familiar with the Integrated Relocation Program, the National Joint Council's Foreign Services Directives and Travel Directive); and legal counsel.
• Specialists within OCHRO and the Office of Public Service Values and Ethics.

4.21.1  The monitoring and reporting requirements contained in the Policy on Interchange Canada apply to this directive.

4.21.2  Liaison officers are required to:

• Complete the form entitled Report on Participant;
• Submit this completed form to OCHRO;
• Track assignments for monitoring purposes;
• Report to OCHRO on the extension or conclusion of an assignment; and
• Submit an evaluation form to OCHRO at the conclusion of the assignment.