Item - 2014.AU16.15
Tracking Status
- City Council adopted this item on July 8, 2014 without amendments.
- This item was considered by the Audit Committee on June 27, 2014 and adopted without amendment. It will be considered by City Council on July 8, 2014.
AU16.15 - Opportunities to Enhance the Oversight of Non-Union Employee Separation Costs
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
City Council Decision
City Council on July 8, 9, 10 and 11, 2014, adopted the following:
1. City Council request the Executive Director, Human Resources Division to regularly track non-union employee separation costs.
2. City Council request the City Manager, in consultation with the Executive Director, Human Resources Division and the City Solicitor, to report annually to the Employee and Labour Relations Committee on cumulative non-union employee separation costs. The information reported should include a sufficient level of detail and analyses that allows adequate oversight of separation costs, while ensuring that personal information is protected.
3. City Council request the City Manager, in consultation with the Executive Director, Human Resources Division, to review the current process for approving separation costs in order to ensure that the authorization levels are appropriate in the circumstances. In particular, the process should require the City Manager to approve non-union terminations involving exceptional separation arrangements as well as terminations that would give rise to a conflict of interest risk.
4. City Council request the City Manager to ensure that all separation costs, including any exceptions, are documented and approved in accordance with the required approvals set out in the Separation Program.
5. City Council request the City Manager, in consultation with the Executive Director, Human Resources Division and the City Solicitor, to consider developing and implementing proactive measures to identify terminated employees who have found employment elsewhere to ensure the comparable employment provisions are being followed. Steps to be considered should include but not be limited to:
a. periodically mail out notices to employees who receive a separation payment, inquiring as to their employment status;
b. periodically perform search of publicly available information on the internet; and
c. recover overpayments where appropriate.
6. City Council request the City Manager, in consultation with the Executive Director, Human Resources Division and the City Solicitor, to conduct a formal review of the City’s Separation Program on a periodic basis, to ensure that the program remains fair and consistent with the practices of other municipalities and organizations, employment legislation and common law practices. All revisions should be reflected in the Separation Program and Strategies manual accordingly.
7. City Council request the City Manager to work with both Human Resources and Division Heads to ensure that annual performance evaluations clearly reflect employees performance. Documentation be retained for all employees particularly those employees who do not meet expectations.
8. City Council request the City Manager, in consultation with the Executive Director, Human Resources Division and the Director, Accounting Services, to develop and implement a communication protocol to ensure that separation costs are properly accounted for in the financial statements.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2014/au/bgrd/backgroundfile-70638.pdf
(June 27, 2014) Presentation Materials submitted by the Auditor General
https://www.toronto.ca/legdocs/mmis/2014/au/bgrd/backgroundfile-71040.pdf
Motions (City Council)
Vote (Adopt Item) Jul-10-2014 2:32 PM
Result: Carried | Majority Required - AU16.15 - Adopt the item |
---|---|
Total members that voted Yes: 38 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Sarah Doucette, John Filion, Paula Fletcher, Rob Ford, Mary Fragedakis, Mark Grimes, Norman Kelly, Mike Layton, Chin Lee, Peter Leon, Gloria Lindsay Luby, James Maloney, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, Gord Perks, Anthony Perruzza, Ceta Ramkhalawansingh, Jaye Robinson, David Shiner, Karen Stintz, Michael Thompson, Kristyn Wong-Tam |
Total members that voted No: 0 | Members that voted No are |
Total members that were Absent: 7 | Members that were absent are Michelle Berardinetti, Vincent Crisanti, Frank Di Giorgio, Doug Ford, Giorgio Mammoliti, Denzil Minnan-Wong, Ron Moeser |
AU16.15 - Opportunities to Enhance the Oversight of Non-Union Employee Separation Costs
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Committee Recommendations
The Audit Committee recommends that:
1. City Council request the Executive Director, Human Resources Division to regularly track non-union employee separation costs.
2. City Council request the City Manager, in consultation with the Executive Director, Human Resources Division and the City Solicitor, to report annually, to the Employee and Labour Relations Committee on cumulative non-union employee separation costs. The information reported should include a sufficient level of detail and analyses that allows adequate oversight of separation costs, while ensuring that personal information is protected.
3. City Council request the City Manager, in consultation with the Executive Director, Human Resources Division, to review the current process for approving separation costs in order to ensure that the authorization levels are appropriate in the circumstances. In particular, the process should require the City Manager to approve non-union terminations involving exceptional separation arrangements as well as terminations that would give rise to a conflict of interest risk.
4. City Council request the City Manager to ensure that all separation costs, including any exceptions, are documented and approved in accordance with the required approvals set out in the Separation Program.
5. City Council request the City Manager, in consultation with the Executive Director, Human Resources Division and the City Solicitor, to consider developing and implementing proactive measures to identify terminated employees who have found employment elsewhere to ensure the comparable employment provisions are being followed. Steps to be considered should include but not be limited to:
a. periodically mail out notices to employees who receive a separation payment, inquiring as to their employment status;
b. periodically perform search of publicly available information on the internet; and
c. recover overpayments where appropriate.
6. City Council request the City Manager, in consultation with the Executive Director, Human Resources Division and the City Solicitor, to conduct a formal review of the City’s Separation Program on a periodic basis, to ensure that the program remains fair and consistent with the practices of other municipalities and organizations, employment legislation and common law practices. All revisions should be reflected in the Separation Program and Strategies manual accordingly.
7. City Council request the City Manager to work with both Human Resources and Division Heads to ensure that annual performance evaluations clearly reflect employees performance. Documentation be retained for all employees particularly those employees who do not meet expectations.
8. City Council request the City Manager, in consultation with the Executive Director, Human Resources Division and the Director, Accounting Services, to develop and implement a communication protocol to ensure that separation costs are properly accounted for in the financial statements.
Decision Advice and Other Information
The Auditor General made a presentation to the Audit Committee on the Opportunities to Enhance the Oversight of Non-union Employee Separation Costs.
Origin
Summary
The Auditor General’s 2014 Work Plan included a review of the City’s non-union employee separation costs. The City has statutory and legal obligations to provide separation pay to an affected employee when the employment relationship is terminated by the City. From 2011 to 2013, 90 terminated non-union employees received separation payments. Annually, this represents less than one per cent of the 4,200 non-union employees employed by the City. The average separation amount was approximately $120,000 per employee.
The objective of this review was to ensure that non-union employee separation costs have been awarded in accordance with City policies. For the most part, our review found that separation costs were awarded in accordance with City policies, procedures and applicable regulations. However, there are opportunities to enhance certain oversight activities.
This report contains eight recommendations along with a management response to each of the recommendations.
Background Information
https://www.toronto.ca/legdocs/mmis/2014/au/bgrd/backgroundfile-70638.pdf
(June 27, 2014) Presentation Materials submitted by the Auditor General
https://www.toronto.ca/legdocs/mmis/2014/au/bgrd/backgroundfile-71040.pdf