Compensation

Approval Date: 2016-12-01

Effective Date: 2016-12-01

Review Date: 2020-12-01

Authority:
Board of Regents

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Principle:

Memorial University is committed to providing fair and equitable pay to employees. The University’s compensation policy for non-bargaining, management and professional and senior administrative management groups is designed to: 

  • Pay salaries that will attract and retain qualified personnel who can perform the work necessary for the successful operation of the University;
  • Maintain equitable relationships amongst internal positions with similar requirements; and
  • Maintain uniform administration of salaries across broad occupational groups.

Purpose:

To outline the objectives, authority, and procedures for determining and administering the establishment of, and any changes to, salaries of non-bargaining, management and professional and senior administrative management employees.

Scope:

All operationally funded staff employees within the non-bargaining (NB), management and professional (MPS), and senior administrative management (SAM) group. 

Memorial University has separate Guidelines for Employment of Grant Employees.

Definitions:

Classification - Categorization of a position into a job family, inclusive of an associated salary range. 

Contractual employee - an employee who is appointed for a fixed term of employment on either a full-time or part-time basis. 

Existing Rate - The salary paid to an employee for work performed in their position for a year or more.

Full-time Employee - An employee whose normal hours of work are thirty-five (35) or forty (40) hours per week or more for the period of appointment. 

General Economic Increase – A revision to a salary scale due to the application of an approved wage percentage increase. 

Job Family - A series of progressively higher, related positions, distinguished by levels of knowledge, skills, and abilities (competencies) and other factors.

Management and Professional - Positions defined by professional standards or levels of expertise, where work is assigned in the form of an objective and may include hiring and managing the performance of others. To ensure that objectives are met, overtime is self-assigned and compensated on an annual basis with an extra week of annual leave. 

Market Differential - A pensionable salary component that may be paid in addition to an employee’s base salary to recognize a significant market inequity. Approval of market differential establishment has been delegated by the Board of Regents to Vice-Presidents Council. 

Non-Bargaining - Positions that are excluded from bargaining unit work based on the nature of work assigned. 

Operationally Funded Positions - Positions whose salaries are paid at a minimum of 20% from University operating funds. 

Overtime – Hours worked in excess of the standard working hours of a Full-time Employee. 

Part-time Employee - An employee whose normal hours of work are less than thirty-five (35) or forty (40) hours per week, depending on their terms and conditions, for the period of the appointment. 

Red-Circling - Salary protection for a specific period of time to an employee's existing rate of pay when as a result of a personnel action, it exceeds the maximum of the salary range assigned to the position. 

Salary – the pay associated with performing the duties and responsibilities of a position. 

Salary Range – Generally has a minimum and maximum pay amount expressed in annual or hourly values. Also includes a series of intermediate amounts for pay purposes. 

Salary Scale - A collection of salary ranges organized by levels. Examples: Non-bargaining, management and professional and senior administrative management salary scales. 

Senior Administrative Management - Positions that have responsibilities for planning, directing and coordinating major programs or recommending the development of major policies or programs. To ensure that objectives are met, overtime is self-assigned and compensated on an annual basis with an extra week of annual leave. 

Step Increment - A payment made to an individual to recognize service within the University subject to the maximum of the salary range. 

Supervisory Differential - A pensionable payment that is implemented to ensure a supervisor’s total salary is higher than the salary of those they supervise. It is approved when the supervision is both functional and administrative in nature. 

Temporary Assignment – A temporary work arrangement whereby an employee of a lower salary range is required to perform the work of a higher salary range in the absence of the regular incumbent for a specified period subject to:

  1. The position to which an employee is being temporary assigned is within the non-bargaining or management and professional groups, the specified period must be a minimum of 5 working days OR,
  2. The position to which the employee is being temporary assigned is within the senior administrative management group, the specified period must be a minimum of 15 working days.

Unit Head - Refers to Dean, Director and other senior administrators at a comparable level or above, including the President, Vice-Presidents and Associate Vice-Presidents.

University - Memorial University of Newfoundland.

Policy:

Memorial University is committed to fair and equitable pay of all employees. Salary Ranges are based upon the 50th percentile (average pay level) of the appropriate comparator market and approved by the Board of Regents. 

Salary Ranges are reviewed by the Department of Human Resources and any economic or other general adjustment, including the effective date will be subject to Board of Regents approval. The Department of Human Resources may secure market data to determine its competitiveness in the external market, however, the determination of salary adjustments is linked to the University’s budget and overall financial position and any adjustments will be approved by the Board of Regents within the limits of affordability, stewardship, and financial feasibility.

1.0     Initial Salary Determination 

Positions are assigned a Salary Range based upon their position Classification as determined by the application of the university’s job evaluation system.

Upon appointment, salary placement for employees within a Salary Range is determined by the Department of Human Resources. The rate of pay shall be step 1 of the assigned Salary Range, except where:

  1. the promotion and demotion clauses of this policy provide otherwise; or
  2. the Board of Regents has approved a rate above step 1 of the Salary Range; or
  3. a rate above step 1 of the Salary Range is approved for new employees based upon their qualifications, previous experience and departmental requirements. All upscale hire requests must be approved based on the Procedure for Upscale Hiring; or
  4. an approved Market Differential exists.

2.0     Payment of Wages 

Employees shall be paid on a bi-weekly basis and payments will be made by electronic deposit directly into the Canadian banking institution of the employee’s choice. A statement of earnings and deductions will be issued electronically through Memorial’s Employee Self Service at:

https://login.mun.ca/cas/login?service=https://my.mun.ca/Login

3.0     Salary Adjustments

An employee’s salary may change as a result of a step adjustment, a promotion or demotion, a reclassification of their position, or an adjustment to the applicable Salary Range such as a general economic increase.

3.1     Promotion

An employee will receive a promotion and related salary increase when appointed to a position which is assigned a higher Salary Range or when his/her current position is reclassified and assigned to a higher Salary Range.

When an employee is promoted to a position in the non-bargaining group, they shall receive a 5% increase to their salary. If the calculated new salary falls between two steps, it shall be slotted to the higher step; but will not exceed the maximum of the Salary Range.  If the calculated salary falls below the minimum of the Salary Range, it will be slotted to the minimum of the new Salary Range.

When an employee is promoted to a position in the Management and Professional or Senior Administrative Management group, they shall receive a 10% increase to their salary. If the calculated new salary falls between two steps, it shall be slotted to the higher step; but will not exceed the maximum of the Salary Range. If the calculated salary falls below the minimum of the Salary Range, it will be slotted to the minimum of the new Salary Range.

Salary increases are calculated based on an employee’s permanent position salary, unless the employee has been assigned to another position for more than one year, in which case salary increases will be calculated based on the employee’s Existing Rate.

In the case of a contractual employee, salary changes are calculated based on the employee’s Existing Rate, and where contractual employees do not have an Existing Rate, promotion will be based on their most recent Existing Rate, or they will be placed on the new Salary Range as if they were a new employee.

3.2     Demotion

Demotions may occur as a result of an employee or university initiated action whereby an employee is transferred to a position with a lower Salary Range or changes occur to the current position which result in a lower Salary Range.  

1.  Where an employee initiates and/or accepts a demotion, the employee’s salary will be established at a point on the new Salary Range which does not exceed the employee’s Existing Rate. If the employee’s Existing Rate falls between two steps on the new Salary Range, the employee will be slotted to the nearest lower step on the new Salary Range.  If the employee’s Existing Rate is above the maximum of the new Salary Range, the salary will be reduced to the maximum of the new Salary Range.

2.  In accordance with the procedure for Red-Circling, where, as a result of job evaluation, an employee’s Classification is downgraded; the employee’s salary will be established at a point on the new Salary Range which does not exceed the employee’s Existing Rate. If the employee’s Existing Rate falls between two steps on the new Salary Range, the employee will be slotted to the nearest higher step on the new Salary Range. If the employee’s Existing Rate is above the maximum of the new Salary Range, their Existing Rate will be maintained and Red-circled.

      3.3     Temporary Assignment

      Employees who are temporarily assigned to a position of a higher Salary Range will receive a salary increase as follows:

      When an employee is temporarily assigned to a position in the non-bargaining group, they shall receive a 5% increase to their salary.

      When an employee is promoted to a position in the Management and Professional or Senior Administrative Management group, they shall receive 10% increase to their salary.

      Employees receiving Temporary Assignment will receive the applicable percentage on their current salary only and will not be placed on the higher Salary Range. Temporary Assignments in excess of one year must be advertised through the Department of Human Resources. Employees who are temporarily assigned duties of a lower Salary Range will be paid at their current salary.

      Temporary Assignment earnings are not considered pensionable unless:

      i)      Upon commencement, the prescribed period of the Temporary Assignment is greater than or equal to one year; OR

      ii)     The Temporary Assignment is subsequently extended to or beyond a one-year period. Upon extension, the Temporary Assignment will be considered pensionable retroactive to the date of commencement. In these cases, the employee and the University are required to remit pension contributions as if the Temporary Assignment was initially assigned for a period of one year or more as per clause 3.3 (i).

      3.4     Supervisory Differential 

      In order to maintain an appropriate and equitable supervisory relationship, management employees may receive a pensionable payment which would maintain a minimum differential while employed in the supervisory position. The percentage of premium received will be as follows:

      Management and Professional employee supervising a non-bargaining unit or Management and Professional paid employee: = 5% above the highest paid subordinate

      Senior Administrative Management employee supervising a Management and Professional employee or Senior Administrative Management paid employee: = 1% above the highest paid subordinate.

      In situations where a supervisory differential applies it must be demonstrated in writing that the supervision is both functional and administrative in nature and that the supervisor possesses the necessary qualifications, training and background to successfully supervise and guide the work of the subordinate. A supervisory differential must be approved by the Unit Head prior to submission to the Department of Human Resources for approval and implementation.

      Both employment and salary relationships will be monitored and the premium adjusted as required. Supervisory differential reviews will occur following the application of general economic increases, step increments for either the supervisor or subordinate or a change in either the supervisor or subordinate. Any of these changes could result in the reduction or elimination of the applied differential. Supervisory differentials are to cease entirely when the subordinate position becomes vacant.

      3.5     Market Differential

      In exceptional circumstances a market differential may be applied to a position or group of positions. The Department of Human Resources will conduct a market review to determine if a differential is required only where:

      1.The position(s) exist in a low supply/high demand labour market. This can be characterized by high turnover accompanied by the inability to recruit qualified staff that are deemed critical to the operation of the department/university; and

      2.  A higher salary is deemed essential to recruit/retain an employee (or employee group) that serves a critical function that cannot be achieved by any other possible means.

      Market differentials will be reviewed annually as per Board of Regents direction, and if market conditions no longer support the market differential, the employee’s salary may be Red-circled in accordance with the Procedure for Red-Circling.

      3.6     Step Increments

      Employees within the non-bargaining group may be eligible to advance incrementally on their respective Salary Range after completion of one year of full time service or equivalent. See the Procedure for Awarding Step Increments.

      Employees within the Management and Professional group may be eligible to advance incrementally on their respective Salary Range, subject to satisfactory performance, upon completion of one year of full time service or equivalent. To initiate payment of step increments, the employee’s Unit Head must send a written recommendation to the Department of Human Resources.

      Employees within the Senior Administrative Management group may be eligible to advance incrementally on their respective Salary Range upon completion of one year of full time service or equivalent and subject to meeting performance expectations, effective on the anniversary date of their entry on the SAM scale (see Procedure for Awarding Step Increments).

      In all cases, step adjustments will not exceed the maximum step of the assigned Salary Range.

      4.0     Termination

      Employee’s whose positions are terminated due to restructuring, redundancy, or without cause will be provided with an appropriate notice period based on common law principles or as formally outlined in an employment contract, where applicable. Compensation amounts and the form of notice will be provided to the employee in writing and will be subject to applicable statutory deductions.

      5.0     Simultaneous Pay Actions

      When the processing of two or more salary actions occurs simultaneously, they will be processed to the benefit of the employee.

      6.0     Overtime

      Employees included in the Management and Professional and the Senior Administrative Management groups do not qualify for overtime compensation.

      Overtime for non-bargaining employees must be authorized in advance by the appropriate unit head. Compensation for authorized Overtime shall be in the form of payment for each hour of Overtime worked at the rate of one and one-half (1.5) times the individual's hourly rate. An employee may request time off in lieu of Overtime pay, which may be granted on the basis of 1.5 hours for each hour worked in excess of the regular workweek.

      7.0     Tuition Reimbursement

      Full-time Employees and Part-time Employees who are eligible to participate in Memorial’s benefit programs will be entitled to have the equivalent of either one undergraduate course or one graduate program fee paid for each semester a course is taken. Employees must apply for tuition reimbursement each semester for which funding is requested. Details and eligibility requirements can be viewed within the Employee Training and Development Policy.

       

      Related Documents:

      Employee Training and Development Policy

      Guidelines for Employment of Grant Employees

      Procedures:

      For inquiries related to this policy:

      Department of Human Resources 709-864-2434

      Sponsor: Vice-President (Administration & Finance)

      Category: People Resources

      Previous Versions:

      There is at least one previous version of this policy. Contact the Policy Office to view earlier version(s):


      Approval Date:2014-10-16, Effective Date:2014-10-16


      Contact

      University Policies

      230 Elizabeth Ave

      St. John's, NL A1B 3X9 CANADA

      Tel: (709) 864-2530

      Fax: (709) 864-2552

      becomestudent@mun.ca