Human Resources Policies
Re-employment of Former Employees after Reorganizing

Category: Staffing

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Policy Statement

From time to time the City of Toronto may implement special programs to meet downsizing and reorganizing objectives. The intent of these programs is to permanently reduce the size of the workforce. The city therefore restricts the rehiring of former employees who have taken advantage of these programs

Application

This policy applies to all former employees who left under a voluntary or position termination separation program or with any form of retirement incentive.

Definitions

Separation program: A special program offering financial incentives that is introduced to meet downsizing or reorganizing objectives.

Retirement Incentive: Any financial incentive that facilitates early retirement.

Former Employees: All employees who leave the present City of Toronto and its special purpose bodies.


Conditions

Former employees who took part in a separation program or received a retirement incentive cannot be rehired by the city or any of its special purpose bodies, for a period of two years starting from an employee's separation date. Any employee who is rehired after the two year period is considered a "new" employee in terms of salary, benefits and seniority.

Former employees who took part in a separation program or received a retirement package and subsequently work as consultants are also prohibited from participating in projects directly or indirectly related to the City of Toronto or its special purpose bodies for a period of two years. For example, the former employee may not work in the following consulting roles:

  • an individual working as an independent consultant
  • an individual working for a consulting firm i.e. the firm may bid on city contracts but may not involve a former employee on the project
  • an individual working for a firm that has been subcontracted by another consulting firm to perform a specific component of a contract.

An individual may be rehired under extenuating circumstances before the two-year period expires, for example when a former employee with specialized skills and/or experience is required to work on a special project. The individual would be hired on a short-term basis for not more than six months.

Any rehiring must be recommended by the chief administrative officer and requires the approval of City Council.


Implementation

When former employees apply for positions at the city or at its special purpose bodies, recruiters should check employment records to determine if they left the city or a special purpose body with separation packages or retirement incentives.

A standard clause should be inserted in all consulting contracts awarded by the city and its special purpose bodies to ensure compliance with the rehiring policy. This clause would prohibit any consulting company utilizing former employees who received a separation package, from working on any project related to the City of Toronto, within two years of their termination. Requests for proposals should include this information so that consulting companies are informed of this condition, before submitting their proposals.

In exceptional circumstances when a manager wishes to rehire a former employee who took part in separation program, he/she must submit a memo to the executive director of human resources. This memo should include the following information:

  • an outline of the work to be done
  • the duration of the project
  • the particulars of the individual's separation
  • the rationale for rehiring the individual before the end of the two year period.

A copy of this memo and approval should be sent to the staffing unit in Employment Services.

Any former employee who is rehired within two years is employed under the following terms:

  • on a contract basis if in a management or excluded position
  • on a temporary or casual status if in a bargaining unit position.


Approved by

Senior Management Team

Date Approved

June 14, 1999

Revised

January 7, 2003

Related Information

  • Strategic Policies and Priorities Committee (Report No. 2 Clause 2) February 98.
  • Exceptions for former employees who are required to provide evidence at Ontario Municipal Board hearings. See Administration Committee Report No.3.Clause 5, June 99.
  • Report No. 14 of The Administration Committee, Clause 6, Administration Committee adopted by the City of Toronto Council at its meeting of November 26, 27 and 28, 2002.

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