October 3, 2017

Reduced Work Schedule

Reduced Work Schedule

What is it?

This option enables you to alter your regular scheduled hours by reducing your work schedule by one (1) day per week or by one (1) day every two weeks.

For how long?

It is up to you to determine how long you would like to participate in the Reduced Work Schedule option.

How does it work?

You will receive 80% of your regular pay if you choose to take one day off each week.

Should you decide to take one day off every two weeks, you will receive 90% of your regular salary.

What about my benefit coverage?

Your participation in the Reduced Work Schedule does not affect your benefit coverage provided that you work the hours required for coverage.

Can I afford to work a reduced schedule?

Only you can determine if you can afford to take this option. Remember that reducing your work schedule will also mean a reduction in your income.

To assist you with your decision, examples are included below to provide you with a general idea of the reduction in net (take-home) pay associated with the Reduced Work Schedule option.

Can I afford to work a reduced schedule? Example.

Mary lives in Ontario, works full-time, and is considered to be single for income tax purposes. Mary, who would like to have more time off from work, is interested in taking one (1) day off every two weeks (this is the equivalent of a 10% pay reduction). The following illustrates how this reduction will affect Mary’s take-home pay.

Example #1* MGT Employee

Current Salary 10% Reduction
Salary $50,000 $45,000
Super annuation 2,900 2,900
Taxable Income $47,100 $42,100
Total Tax Payable $13,680 $11,824
Mary’s Take-Home Pay
Total remuneration $50,000 $45,000
Less:
Total tax payable (13,680) (11,824)
Super annuation (2,900) (2,900)
CPP (1,069) (1,069)
EI (1,053) (1,053)
LTD/DI (as applicable) (165) (165)
BLIP (240) (240)
EHCP (114) (114)
Net take-home pay $30,779 $27,651
Reduced Take-home pay $3,128
Reduced take-home pay per pay period $120

Example #2* Bargained Employee

Current Salary 10% Reduction
Salary $35,000 $31,500
Super annuation 1,774 1,774
Taxable Income $33,226 $29,725
Total Tax Payable $8,529 $7,230
Mary’s Take-Home Pay
Total remuneration $35,000 $31,500
Less:
Total tax payable (8,529) (7,230)
Super annuation (1,774) (1,774)
CPP (1,008) (896)
EI (945) (851)
LTD/DI (as applicable) (323) (323)
BLIP (168) (168)
EHCP (114) (114)
Net take-home pay $22,139 $20,176
Reduced Take-home pay $1,963
Reduced take-home pay per pay period $76
  • CPP – Canada Pension Plan
  • BLIP – Basic Life Insurance Plan
  • EHCP – Extended Health Care Plan
  • EI – Employment Insurance
  • LTD/DI – Long Term
  • Disability/Disability Insurance

*These examples are provided for illustrative purposes only. The effect on your pay will depend on your personal tax circumstances If more detailed information is required, you may wish to speak to a financial advisor.

Can I revert back to a 5 day work schedule?

You may, at any time, return to a regular 5 day-work schedule. Should you wish to do so, you will need to notify your appropriate level of management and your AccessHR. This notification is to be provided in writing at least one (1) month prior to the date you want to resume a regular 5 day work schedule.

Should a statutory holiday fall on a non-working day, you will receive a day in lieu at some other time which is convenient to both you and the Corporation.

Due to special or urgent circumstances, you may be called upon to work a 5 day week on a temporary basis. Should this occur, your salary would be adjusted accordingly. You will be returned to your reduced work schedule as soon as it is operationally feasible.

Should you request maternity, parental, adoption, or child care leave during your participation in the Reduced Work Schedule, the reduced schedule will be suspended for the period of such leave and reinstated for completion upon the end of your leave.

Questions and Answers

What if I want to reduce my work schedule by more than one day a week?

That would be considered an election to work part-time. Please refer to the description of the Part-time work option.

Can I reduce or cancel some of the benefits that I pay now?

The mandatory benefit plans as well as the premiums will remain unchanged. We believe this is more beneficial for everyone participating. However, it is possible to modify or cancel your coverage under the Life & Accident Program and Extended Health Care Plan.

I would like to propose an alternative reduced work schedule. Is this possible?

Yes. You should discuss your alternative schedule with your appropriate level of management. However, any alternative reduced work schedule will only be approved on a case-by-case basis.

Once my application has been approved by the appropriate level of management, when can I start my reduced work schedule?

Your new work schedule must coincide with the next available pay period. This means that in order to start your new work schedule on the Monday of a pay period, your approved application must be forwarded to AccessHr no later than the Wednesday prior to the start of that pay period.

In the event that I take maternity or parental leave, will my benefits be affected if I participate in the Reduced Work Schedule option?

No, there will not be any impact on maternity or parental leave benefits. Your benefits will be calculated on 100% of your regular salary and not on your reduced salary.