Managing overuse of units and management allowances
Schools that have been identified as exceeding their staffing entitlement for units should have been notified by the Ministry of Education.
Some boards have also received similar notifications about the overuse of Senior Management Allowances (SMA) and Middle Management Allowances (MMA).
By 2027, boards must bring the number of units and management allowances they use within their entitlement.
From 2027, the Ministry will not fund any units or management allowances used in excess of a school’s entitlement. Instead, any overuse will be deducted from the school’s operational funding.
How does unit entitlement work?
Each year, the Ministry of Education informs schools of their annual unit entitlement. This entitlement is calculated using a formula based on staffing and student numbers.
Schools are notified of their unit entitlement for the following year in mid-September (this is confirmed by MOE the following March).
Legally, a board may not pay units to teachers in excess of its annual entitlement.
More information on staffing entitlements can be found in our article on Reduction in Staffing Entitlement.
How should units be allocated?
The Primary Teachers’ Collective Agreement (PTCA) requires boards to consult with teachers when developing a policy for allocating units.
While the Area Schools Teachers’ Collective Agreement (ASTCA) and the Secondary Teachers’ Collective Agreement (STCA) do not explicitly require consultation on a Unit Allocation Policy, having clear and transparent processes for allocating units is good practice.
Consultation with staff and the relevant unions when creating a Unit Allocation Policy is vital.
What should you do if your school is over its unit entitlement?
If you have been notified or believe your school may be over its entitlement, seek advice on which of the following steps may be right for your situation.
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Check your Unit Allocation Policy
Follow the relevant steps set out in your policy. It should address what any review of unit allocation should consider.
If your policy only refers to the Collective Employment Agreement and does not set out clear procedures for the allocation and relinquishment of units, it is likely to be insufficient.
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Consider attrition and fixed-term reduction for units
Employment agreements for teachers in primary, area, and secondary schools allow boards to allocate up to 40% of their unit entitlement on a fixed-term basis.
If your school is over its unit entitlement, not reallocating fixed-term units (or permanent units that are relinquished) can help resolve the surplus (in most cases).
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Consider whether the issue can be addressed via the surplus staffing process
If the reduction of units cannot be achieved via attrition or fixed-term allocations, the board will need to undertake a full consultation process.
The process for managing staff and unit reductions is set out in the surplus staffing provisions in teachers’ employment agreements.
The surplus staffing provisions in all teachers’ collective agreements (and in promulgated individual employment agreements) require boards to consult with their staff regarding surplus positions and units.
Boards must give 8 weeks’ notice to their staff of any proposed change. Changes to units take effect at the beginning of the next school year.
You can find more information on the surplus staffing process in our article on Surplus Staffing, CAPNA, and Needs Analysis.
Taking action during 2026 is the only way to avoid the first funding recovery in July 2027.
Where can you get help?
Our Advisory and Support Centre can help your board reduce its allocation of salary units and management allowances.
For technical questions about your entitlement or a monitoring letter, contact the Ministry of Education using the details provided on its monitoring guidance pageopen_in_new.
Templates, resources, and references
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