Procedure for Red-Circling
Approval Date: 2016-12-01
Effective Date: 2016-12-01
Responsible Unit: Department of Human Resources
Transitioning to the appropriate Salary Range:
An employee shall remain red-circled until such time as the Salary, exclusive of any adjustment, is equal to or lesser than the maximum step of the assigned Salary Range. In this context, the Salary is the rate at which an employee is being paid when red-circling occurs and a salary adjustment is an amount payable pursuant to a General Economic Increase (GEI), applied to Salary Scales in any particular year.
At such time as the employee ceases to be red-circled, they will be placed at a step on the assigned Salary Range which is equal to their Salary or where the Salary falls between two steps, the higher step.
Application of GEI:
A red-circled employee receives a salary adjustment in the form of a non-pensionable bi-weekly payment calculated as a percentage of their Salary, where the percentage equals the rate of the GEI applied in the given year. The salary adjustment is payable for only 12 months (26 pay periods) from the date the related GEI is effective or until a new GEI is implemented, whichever occurs first. Following the 12 month payment period, the salary adjustment ceases. If a subsequent GEI is implemented, a new non-pensionable salary adjustment is paid similarly based upon this GEI.
When the salary of a red-circled employee reaches parity with the assigned Salary Range in the year of a GEI, the amount of the salary adjustment shall be calculated as the difference between the Salary (i.e. the red-circled salary) plus GEI and the employee’s placement on the assigned Salary Range.
If an employee vacates the position, the red-circling ceases. Any non-pensionable salary adjustment is removed.
Promotion, Demotion or Temporary Assignments:
A Temporary Assignment, promotion or demotion action for a red-circled employee is based upon their Salary exclusive of any salary adjustment that they may be receiving at the time.
If a red-circled employee is eligible for overtime, the overtime rate is calculated based on their Salary and does not take into account any salary adjustment that the employee may be receiving at the time.
In cases where a Market Differential has been associated with the position and it is removed, the red-circled salary is inclusive of market differential amounts.