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== STEP 1 — Determine the Desired Current and Future State of the Organization ==
 
== STEP 1 — Determine the Desired Current and Future State of the Organization ==
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==== Legislative and Policy Framework ====
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=== Legislative and Policy Framework ===
This step is grounded in the '''Public Service Employment Act (PSEA), s.64''', the '''Public Service Employment Regulations (PSER), s.22''', the '''PSC Selection of Employees for Retention or Lay‑Off Guide''', the '''Employment Equity Act''', the '''Accessible Canada Act''', the '''Official Languages Act''', and the '''Workforce Adjustment Directive (WFAD)'''. These instruments collectively set the conditions for initiating SERLO and shape the employer’s obligations during restructuring.
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This step is grounded in the '''Public Service Employment Act (PSEA), s.64''', the '''Public Service Employment Regulations (PSER), s.22''', the '''PSC Selection of Employees for Retention or Lay‑Off Guide''', the '''Employment Equity Act''', the '''Accessible Canada Act''', the '''Official Languages Act''', and the '''Workforce Adjustment Directive (WFAD)'''. These instruments collectively set the conditions for initiating SERLO and shape the employer’s obligations during restructuring. Step 1 establishes the operational basis for initiating a SERLO. It begins when the Deputy Head determines that the services of some, but not all, employees in a defined area are no longer required due to lack of work, a discontinued function, or organizational restructuring under PSEA s.64.
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==== 1. What This Step Is:  ====
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=== Determinations required before any assessment. ===
Step 1 establishes the operational basis for initiating a SERLO. It begins when the Deputy Head determines that the services of some, but not all, employees in a defined area are no longer required due to lack of work, a discontinued function, or organizational restructuring under PSEA s.64.
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===== '''Determinations required before any assessment.''' =====
   
Before assessing employees, the organization determines what work will continue or cease/reduce, which functions are required in the future state, how many indeterminate positions are needed to perform ongoing work, and what knowledge, skills, experience, and language requirements will exist.
 
Before assessing employees, the organization determines what work will continue or cease/reduce, which functions are required in the future state, how many indeterminate positions are needed to perform ongoing work, and what knowledge, skills, experience, and language requirements will exist.
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===== '''Environmental scan requirements.''' =====
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=== Environmental scan requirements. ===
 
Decisions are informed by a workforce analysis, a skills‑gap analysis, and a review of representation rates for designated EE groups in the affected area.
 
Decisions are informed by a workforce analysis, a skills‑gap analysis, and a review of representation rates for designated EE groups in the affected area.
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===== '''Structural foundation reminder.''' =====
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==='''Structural foundation reminder.'''===
 
Early misinterpretations—particularly around representation and labour‑market context—create distortions that later equity controls cannot fully correct.
 
Early misinterpretations—particularly around representation and labour‑market context—create distortions that later equity controls cannot fully correct.
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==== 2. Required Actors ====
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=== 2. Required Actors ===
    
===== '''Accountable authority.''' =====
 
===== '''Accountable authority.''' =====