Part I - Administration of Allowances

1.1.1 When the hours of work of employees are less than normal hours of work, the employees shall, on a daily basis, be paid allowances for each hour worked to a maximum of the daily rate of allowances of full-time indeterminate employees of the same classification, group and level.

1.2.1 The amount of employees' allowances shall be calculated and paid in the same manner as their salaries or wages are calculated and paid pursuant to an appropriate governing authority.

1.2.2 In calculating the amount of an allowance to which employees are entitled, there shall not be included in the number of hours worked by them

1. any hours worked in excess of the normal working hours for that classification, group and level, and
2. subject to section 1.15 (Leave Without Pay or Absence Without Leave), any hours for which salary or wages are not paid.

1.3.1 When the cost of transportation of food, fuel or other supplies is borne by or on behalf of the employer and is not considered in the determination of the allowances, the deputy head shall prescribe a reduction that is appropriate to that cost in the rates of the following allowances:

1. a living cost differential;
2. a fuel and utilities differential;
3. a special location allowance.

1.4.1 Where changes to an employee's life have an impact on the allowances and benefits they receive as per this directive, it is the employee's responsibility to notify management and their departmental human resources branch/section as soon as possible so that appropriate action may be taken.

1.5.1 When employees cease to be employees with dependants because a person referred to in the definition of dependant becomes an employee, they may request a reconsideration of the matter by submitting the relevant facts to their deputy head in writing.

1.5.2 On receipt of the written statement of facts from employees, the deputy head may deem them to be employees with dependants or without dependants for purposes of this directive.

1.6.1 Where a couple with no dependants is employed with the federal government at an isolated post, both persons are considered to be "employee without dependants" for the purposes of the payment of the allowances. If one member goes on leave without pay, that person forfeits the allowance, but can be considered the dependant of the person who continues to work. The "working" employee can be deemed, for the period of the leave without pay, as an "employee with dependants" and have the allowances adjusted accordingly. If and when the employee on leave without pay returns to work, the allowances will be readjusted to the "employee without dependants" rate in both cases.

1.7.1 For purposes of payment of the allowances mentioned in sections 1.8 to 1.11, where an employee having one or more dependants has a person referred to in paragraph (a) of the definition of dependant residing with the employee at the employee's headquarters residence who is a member of the Canadian Forces receiving an isolation allowance under the Compensation and Benefit Instructions for the Canadian Forces at the "accompanied" rate, that employee shall be deemed to be an employee without dependants. If that dependant is receiving an isolation allowance at the "unaccompanied" rate, the employee shall be deemed to be an employee with dependants.

1.8.1 Employees shall be paid an environment allowance, at the rate set out in Appendix B that is appropriate to the environment classification of their headquarters as set out in Appendix A.

1.8.2 For purposes of this section, where both members of a couple are federal employees and have no dependants then both of them shall be deemed to be employees without dependants.

1.8.3 For purposes of this section, where both members of a couple are federal employees and have dependants then one of them shall be deemed to be an employee with dependants and the other to be an employee without dependants.

1.9.1 Employees not subject to section 1.18 (Meals or Rations) shall be paid a living cost differential, at the rate set out in Appendix C that is appropriate to the living cost classification of their headquarters as set out in Appendix A. For purposes of this section, when both members of a couple are federal employees, the aggregate amount of their rates for the LCD shall not exceed 100% of the rate for an employee with dependants.

1.9.2 Normally, that aggregate shall be equally apportioned to each employee at 50% of the rate for Employees with Dependants. However, if both members of the couple sign a joint declaration requesting that one of them be considered an Employee with Dependants and the other a dependant, their employing department(s) shall make the appropriate arrangements to do so.

1.9.3 Transition Period: The LCD allowances an employee couple is receiving on July 31, 2003 will be frozen for a five-year period, or until such time as future LCD rates for employees with dependants (as revised annually) become equal to or higher than the amount the household is currently receiving.

1.9.4 Employees subject to section 1.18 shall be paid a living cost differential at a rate,

1. in the case of employees with dependants, that is 70 per cent of the rate, set out in Appendix C, that is appropriate to an employee with dependants for the living cost classification of the employee's headquarters as set out in Appendix A, or
2. in the case of employees without dependants, that is 35 per cent of the rate, set out in Appendix C, that is appropriate to an employee with dependants for the living cost classification of the employee's headquarters as set out in Appendix A.

1.10.1 Employees shall be paid a Fuel and Utilities Differential, at the rate set out in Appendix D, that is appropriate for the fuel and utilities classification of their headquarters as set out in Appendix A, provided they are paying fuel and utility charges directly to the supplier. If the employer pays the fuel and utility charges directly to the supplier, employees shall not be paid the Fuel and Utilities allowance.

1.10.2 When two or more employees occupy the same headquarters residence and share the expenses for fuel and utilities, the aggregate of their rates for the fuel and utilities differential shall not exceed the rate for a employee with dependants, and that aggregate shall be apportioned to each employee in proportion to the percentage of the expenses for fuel and utilities paid by each employee.

1.11.1 A Shelter Cost Differential (SCD) shall be payable at certain isolated posts to help offset the higher shelter charges experienced there. Where both members of a couple are federal government employees, the total amount of SCD payable shall not exceed 100% of the rate for an Employee with Dependants. An employee without dependants shall receive the SCD at 60% of that rate.

1.12.1 Employees at a location listed in Appendix G shall be paid a special location allowance rate equal to the aggregate of the rates, set out in Appendices C and D, that are appropriate to that employee for the special location allowance levels as set out in Appendix G.

1.13.1 Employees shall be paid temporary dual residence assistance at the rate established by, and in accordance with, the Relocation – Integrated Relocation Program (IRP) Directive when, at the time of their assignment, their headquarters is a location

1. listed in Appendix F, or
2. in respect of which the National Joint Council determines that no suitable accommodations for employees with dependants are available, and
3. they are required, for that reason only, to maintain a separate residence at a location other than their headquarters for persons who would be dependants if they resided at the headquarters residence.

1.14.1 Persons at an isolated post who are in travel status pursuant to the Travel Directive and whose headquarters are not isolated posts are not subject to this directive.

1.15.1 Subject to 1.20.4 and 1.20.5 and this section, employees shall not be entitled to the allowances and benefits of this directive in respect of any period during which they are

(a) granted leave without pay pursuant to an appropriate governing authority, or

(b) absent from duty without leave.

1.15.2 Employees who are granted leave without pay for the following reasons shall be eligible for the benefits of section 2.1 (Non Elective Medical or Dental Treatment) and Part IV (Relocation upon End of Employment) of this directive: illness, injury-on-duty or maternity/parental leave.

1.16.1 The period of eligibility for the payment of allowances shall commence on the later of:

1. midnight of the day immediately preceding the day that the employees arrive at their headquarters, and
2. midnight of the last day in respect of which the employees are paid any transportation or travelling expenses as a result of their assignment to an isolated post.

1.17.1 The period of eligibility for the payment of allowances shall end at midnight on the earlier of the day immediately preceding

1. the first day in respect of which employees are paid any transportation or travelling expenses as a result of their relocation from their headquarters, and
2. the day they cease to be employees.

1.18.1 When employees and their dependants, if any, are provided with meals or rations by or on behalf of the employer, they shall be charged for meals or rations at the rates specified in Appendix K.

1.18.2 The meals and rations charges shall be amended on August 1 of each year.

1.18.3 When fewer than three meals per day are normally provided to employees and their dependants, the rates shall be reduced by one-third for each meal not provided.

1.18.4 The rations provided to an employee by or on behalf of the employer shall not be sold or bartered by or on behalf of that employee.

1.18.5 The amounts charged to employees pursuant to this section shall be deducted from the amount of any allowance payable to them pursuant to this directive.

1.18.6 The Treasury Board Secretariat may, in accordance with the approved methodology, vary the rates specified in Appendix K.

1.18.7 When the rates are changed, each employee shall be given written notice of the change. Such change shall be effective on the first of the month following the employee's receipt of the written notice, or the effective date of the change, whichever is the later.

1.18.8 The rates to be charged for meals or rations have been abated to reflect the time employees are absent from their headquarters. Consequently, there should be no further reduction when employees are absent for short periods such as vacation leave, designated paid holidays, sick leave, furlough leave, lieu time off, etc.

1.18.9 During absences for extended periods for reasons, such as leave without pay, that result in cessation of allowances, the deputy head may adjust the meals and rations rate correspondingly.

1.19.1 Subject to this section, when employees are absent from their headquarters and are paid transportation or travelling expenses in respect of that absence, their allowances shall, on the 31^st day of absence,

1. cease, if they are employees with dependants and none of their dependants remain at their headquarters,
2. revert to the employee without dependants rate, if they are employees with dependants and one of their dependants remains at their headquarters, or
3. remain at the employee with dependants rate, if they are employees with dependants and more than one of their dependants remains at their headquarters.

1.19.2 When employees referred to in 1.19.1 are entitled to a fuel and utilities differential, they shall continue to receive that differential, provided they

1. maintain a headquarters residence during their absence, and
2. do not sublet it.

1.19.3 Nothing in this section shall be construed to affect the allowances of employees who are granted leave for vacation, furlough, compensatory or lieu time off with pay pursuant to an appropriate governing authority and who:

1. remain at their headquarters, or
2. return to their headquarters at the conclusion of the leave or time off.

1.20.1 Subject to this section, when employees are absent from their headquarters, having been granted sick or injury-on-duty leave with pay, their allowances shall, on the 31^st day of absence

1. cease, if they are an employee with dependants and none of their dependants remain at their headquarters,
2. revert to the employee without dependants rate, if they are an employee with dependants and one of their dependants remains at their headquarters, or
3. remain at the employee with dependants rate, if they are employees with dependants and more than one of their dependants remains at their headquarters.

1.20.2 When employees referred to in 1.20.1 are entitled to a fuel and utilities differential, they shall continue to receive that differential, provided they

1. maintain their headquarters residence during their absence, and
2. do not sublet it.

1.20.3 The deputy head may authorize the continued payment of allowances for not more than 60 additional days of absence when employees, due to illness or injury, have been granted sick or injury-on-duty leave with pay and have been absent from their headquarters for more than 30 days.

1.20.4 The deputy head may authorize the payment of allowances for not more than 30 days when employees have been granted sick leave without pay.

1.20.5 When employees are, or are expected to be, absent for a period in excess of the periods above by reason of the illness or injury in respect of which they were granted leave, the President of the Treasury Board may authorize the continued payment of allowances to those employees.

1.21.1 Subject to this section, when employees begin a period in respect of which allowances are payable without any dependants, but they establish to the satisfaction of their deputy head that a dependant intends to reside with them at their headquarters residence during the entire term of their assignment there, the amount of any allowance shall be calculated at the rate for an employee with dependants from the day the period commences, if the dependant arrives at the headquarters within 90 days of that day.

1.21.2 Subject to this section, when no dependants remain at the headquarters residences of employees for periods in excess of 90 days, the amount of any allowances of those employees shall be calculated at the rate for an employee without dependants for the period commencing on the 91^st day of the absence and ending on the day before the day on which employees again have dependants at their headquarters residences.

1.21.3 When employees referred to in this section satisfy their deputy head that their dependant's absence for a period in excess of 90 days

1. was unforeseen.
2. was beyond the control of the dependant and the employees, and
3. is temporary,

their deputy head may direct that the employees' allowances shall continue to be calculated at the rate for employees with dependants for such further period of time as the deputy head determines.

1.22.1 Subject to this section, when employees satisfy their deputy heads, by means of a court order or declaration signed by both parents, that they have joint custody and joint residency of their children, the children shall be considered dependants for the period they reside with the employees.

1.22.2 Should the rates of the employees' allowances change as a result of the above, an average annual rate will be calculated based on the length of time the employees should be paid the employee without dependants and employee with dependants rates and they will be paid the same bi-weekly rate during the fiscal year. If changes in employees' situation results in a change to their entitlements, for example they leave the isolated post or the public service, their entitlements will be recalculated and necessary adjustments will be made.

1.22.3 Except for Section 2.1, Non-elective medical or dental treatment, the entitlements of the dependants, referred to in 1.22.1, to the benefits of this directive shall be pro-rated based on the percentage of time they reside with the employee at the isolated post during the fiscal year.

1.22.4 Section 2.1 shall apply to the children, referred to in 1.22.1, provided they are residing at the isolated post, where the employee resides, at the time of the necessary travel.

1.22.5 Where employees only have visitation privileges in respect of their children, the children will be considered dependants if they reside with the employees at the employee's headquarters residence for a period of 30 or more consecutive days and

1. the changes, if any, in the rates of the allowances payable to the employees shall apply for the entire period the children reside with the employee;
2. the other benefits of the directive, except for Section 2.1, for which the children may be eligible during their stay with the employee, shall be pro-rated based on the percentage of time the children reside with the employees at their headquarters residence during the fiscal year; and
3. Section 2.1 shall apply for the period the children reside with the employee at the headquarters residence.