Retired library employee collecting sick leave gratuity payout not eligible for wage increase

Employee receiving the payout considered retired: Arbitrator
|Canadian Labour Reporter|Last Updated: 04/25/2016

In 2010, the Toronto Public Library Board and the Toronto Public Library Workers Union Local 4948 adopted a new short-term disability plan called IIP. New hires would fall under IIP while existing employees were given the option of continuing with the old sick leave accrual plan or transferring to the new option.

Employees who did transfer were then given the option of having their accrued but “capped” sick leave credits made available for use in supplementing any potential shortfalls in coverage under the IIP or receiving an immediate payout of the credits.

Raymond Hickman chose to make his credits available for use in supplementing coverage under the IIP. Nearing his last day before retirement, Hickman was given the choice of taking the sick leave gratuity in the form of a single payment on Sept. 30, 2014 — his last day of work — or in the form of salary continuance from Sept. 30 until the end of the period to which the value of the sick pay gratuity related which, in his case, was six months.