Horizontal Terms and Conditions for the Youth Employment and Skills Strategy

Introduction

Canada needs an educated, skilled and experienced workforce to sustain its productivity and its economy. Youth are one of Canada's primary sources of new labour market entrants. However, the emergence of new technologies, globalization, and new management models are shaping a new world of work. The changing labour market has especially affected young people who now face less linear paths to education, training, and employment.

While Canada's youth have historically fared well in terms of their labour market participation and employment rate, many young Canadians face barriers and new challenges to labour market integration.

With an aim to providing youth with comprehensive supports and access to opportunities that will make it easier for them to enter the labour market, the Government of Canada has committed to modernize the Youth Employment Strategy (YES) with an emphasis on youth facing barriers.

The Youth Employment and Skills Strategy (YESS) is intended to help youth facing barriers develop their skills along a continuum to become more job ‑ready. The overall outcome will better equip youth to advance in the labour market so that individuals, families, and communities mutually benefit from the participation of youth in the Canadian economy.

These horizontal terms and conditions establish a horizontal framework of standard criteria for all participating departments, agencies and Crown corporations when signing contribution agreements under the YESS.

YESS is a horizontal initiative led by the Department of Employment and Social Development (ESD) and delivered in collaboration with eleven federal departments, agencies and Crown Corporations, specifically: Agriculture and Agri-Food Canada; Canada Mortgage and Housing Corporation; Canadian Heritage; Global Affairs Canada; Environment and Climate Change Canada; Immigration, Refugees and Citizenship Canada; Indigenous Services Canada; Innovation, Science and Economic Development Canada; National Research Council Canada; Natural Resources Canada; and Parks Canada.

Other departments, agencies and Crown corporations can be included under the strategy if they meet the following criteria:

• they agree to deliver programming based on these Ts&Cs;
• they report on common outcomes for the YESS; and
• the YESS Interdepartmental ADM Steering Committee agrees to include them.

Future departments will be able to gain access to the YESS horizontal terms and conditions through a Minister signed submission to Treasury Board. The Department of ESD will consult with Treasury Board Secretariat when new signatories are to be added.

Participating departments, agencies and Crown corporations will use these horizontal Terms and Conditions. However, subject to consultation with Treasury Board Secretariat, some departments, agencies, and Crown corporations may adopt to use these horizontal Terms and Conditions over a phased approach where program specific terms and conditions are gradually terminated.

In the case where participating departments will need to maintain existing Terms and Conditions in order to provide additional program specific objectives, or criteria, under a separate program authority, consultation with the Treasury Board Secretariat will occur to make amendments to existing Terms and Conditions to allow for continued service of the program.

In either case, the participating departments, agencies, Crown corporations need to ensure that the supported activities meet the standard criteria in these terms and conditions and comply with the TB Policy on Transfer Payments and the TB Directive on Transfer Payments or TB-approved exemptions to the TB Policy on Transfer Payments and the TB Directive on Transfer Payments.

The horizontal management of the YESS Terms and Conditions will be coordinated by the Department of ESD and supported by the YESS ADM Steering Committee. When changes are required to the Terms and Conditions, the Department of ESD will lead the consultation and approval process.

The YESS is part of a larger array of programs that bring together a wide range of youth services and initiatives as part of the Government of Canada's broader youth policy.

1.0 Authority

The YESS is established by the Minister of the Department of Employment and Social Development ("the Minister") pursuant to section 7 of the Department of Employment and Social Development Act (DESDA). Section 7 provides that "The Minister may, in exercising the powers and performing the duties and functions assigned by this Act, establish and implement programs designed to support projects or other activities that contribute to the development of human resources of Canada and the skills of Canadians, or that contribute to the social development of Canada, and the Minister may make grants and contributions in support of the programs."

The mandate of the Minister (i.e. the powers, duties and functions assigned by the DESDA to the Minister) is set out in section 5 of the DESDA. Subsection 5(1) provides that "the Minister's powers, duties and functions extend to and include all matters relating to human resources and skills development in Canada or the social development of Canada over which Parliament has jurisdiction and which are not by law assigned to any other Minister, department, board or agency of the Government of Canada." Subsection 5(2) further provides that "The Minister shall exercise the powers and perform the duties and functions (a) relating to human resources and skills development with a view to improving the standard of living and quality of life of all Canadians by promoting a highly skilled and mobile workforce and an efficient and inclusive labour market; and, (b) relating to social development with a view to promoting social well‑being and income security."

Programs delivered by YESS partner departments which fall under this horizontal initiative are also delivered under departmental authorities:

• Agriculture and Agri‑Food Canada (AAFC ) Act: Section 4 of the Department of AAFC Act
• Canada Mortgage and Housing Corporation Act (CMHC): Section 17, part II of the CMHC Act.
• Environment and Climate Change Canada (ECCC): Section 4 of the Department of the Environment Act.
• Global Affairs Canada (GAC): Section 10 (1) of the Department of Foreign Affairs, Trade and Development Act
• Innovation, Science and Economic Development (ISED): Subsections 4. (1) (a), (b) and (l), 5. (d), (e) and (g), 6. (c) and 14. (1) (c) of the Department of Industry Act; and the ongoing Youth Employment Strategy funding through Cabinet approval on November 5, 2002
• National Research Council (NRC): Section 5 (c) of the NRC Act
• Natural Resources Canada (NRCan): Section 5 of the Department of Natural Resources Act
• Parks Canada: Section 4 of the Parks Canada Agency Act

2.0 Purpose and objective

2.1 Purpose

The purpose of the YESS is to provide Canadian youth, especially youth facing barriers, with access to social support, skills training, and employment opportunities they need to obtain employment or return to school.

The YESS supports one of the core responsibilities of the Department of ESD to help Canadians access post-secondary education and get the skills and training they need to participate in a changing labour market, as well as provide support to those who are temporarily unemployed. This, in turn, contributes to the Department of ESD's overarching mission to build a stronger more inclusive Canada, to support Canadians in helping them live productive and rewarding lives and to improve Canadians' quality of life.

Programs delivered by YESS partner departments also contribute to achieving departmental mandates, as indicated below (or in departmental annexes).

2.2 Objectives

The YESS is divided into two program areas which are intended to provide Canadian youth with information, skills development, supports, work experience and networks to help them prepare for and successfully transition to sustained employment.

2.2.1 Youth Employment and Skills Strategy Program

The objectives of the Youth Employment and Skills Strategy Program (YESSP) are to help all youth navigate through the labour market and to successfully transition into sustained employment. These objectives are attained by supporting the needs of all youth, especially youth facing barriers, to develop skills, knowledge and networks through education, skills development, and meaningful work experiences.

2.2.2 Canada Summer Jobs

The Canada Summer Jobs (CSJ) program provides wage subsidies to employers to create employment for youth. CSJ provides funding to not‑for‑profit organizations, public‑sector employers, and private‑sector employers to create quality summer job opportunities for youth. Through the application of national and local priorities, the CSJ program seeks to provide youth who face barriers to employment with access to work opportunities. Funded employers must demonstrate that they are providing quality work experiences for youth that provide opportunities to develop and improve their skills. The CSJ program is delivered by the Department of ESD.

3.0 Expected outcomes and key performance measures

3.1 Expected outcomes

The expected outcomes of the YESS are:

• youth , especially those facing barriers, have access to social support, skills training, and employment opportunities they need to obtain employment or return to school
• youth successfully participate in an inclusive labour market

Progress towards the objectives of the YESS is measured through a new performance measurement strategy, approved in 2023. The implementation began in 2023-2024 and expects to be complete by March 2025, in accordance with the TBS-approved YESS Performance Measurement Framework (PMF) Commitment Report in February 2024.

3.2 Key performance measures

Youth, especially youth facing barriers, access the social support skills training, and employment opportunities they need to obtain employment or return to school.

Measured through the following short term outputs:

1. number of youth served
2. percentage of youth from equity communities, including:
1. gender;
2. indigenous youth;
3. racialized youth (previously "visible minority");
4. black youth;
5. 2SLGBTQI+;
6. youth with disabilities;
3. rural/remote/northern/fly‑in youth;
4. Official Language Minority Community youth.
5. percentage of youth employed/‑self-employed
6. percentage of youth returned to school

3.3 Immediate outcomes

As a result of participation in YESS activities, it is expected that YESS participants will experience a number of positive outcomes in the immediate term. While these are measured in the short term (during and shortly after participation), it is expected that these outcomes will continue to persist into the medium term as well, as they contribute towards the ultimate outcome of the Strategy. 

1. Skill Development
1. Indicator 1: number of youth who self report that they have gained skills
2. Indicator 2: number of delivery partners report that youth gained skills
2. Supportive Employment
1. Indicator 1: number of youth report that they receive supports

3.4 Intermediate outcomes

It is expected that YESS participants will experience the following intermediate outcomes.

1. Youth progress towards employment
1. Indicator 1: number of youth employed or self employed
2. Indicator 2: youth return to school or formal training

4.0 Eligible recipients

4.1 Eligible recipients

Eligible recipients include:

• individuals
• not-for-profit organizations (including voluntary organizations and foundations)
• municipal governments
• indigenous organizations (including band councils, tribal councils and self-government entities)
• for-profit organizations
• public health, educational and cultural institutions
• provincial and territorial governments, institutions, agencies and Crown Corporations

4.2 For-profit eligibility

For-profit organizations may be eligible for funding provided that the nature and intent of the activity is non-commercial, not intended to generate profit, and supports program priorities and objectives.

4.3 Eligible participants

"Eligible participant" for the purposes of the Youth Employment and Skills Strategy Program and the Canada Summer Jobs means a youth between the ages of 15-30 inclusive who are legally entitled to work in Canada and is a Canadian citizen, permanent resident, or person who has been granted refugee status in Canada.

5.0 Eligible activities

5.1 Youth Employment and Skills Strategy Program activities

The following are eligible activities under the YESS program:

• activities designed to enable stakeholders to develop and plan eligible projects
• activities that support the development and use of tools and products for learning, skills development, career planning and career development
• service activities, which include but are not limited to outreach, client assessment, case management, career development information, and job search and job retention assistance
• activities designed to enable youth to acquire and enhance skills, which include but are not limited to pre-employability skills, employability skills and advanced employability skills
• activities designed to provide work experiences
• activities designed to provide wrap-around services to support youth employment needs, such as mentoring and coaching
• activities designed to support youth entrepreneurs gain self-employment
• activities that support youth in making informed career decisions, promote the value of education, and promote youth as the labour force of the future
• activities designed to support research and innovative projects to identify better ways of helping youth prepare for, return to, and keep employment and to be productive participants in the labour force
• activities to support employers in hiring or retaining youth facing barriers
• activities designed to build better linkages between organizations for the benefit of youth

5.2 Canada Summer Jobs activities

The following are eligible activities under the CSJ program:

• activities supporting employers to assist them in hiring youth full-time from April to September in Canada to gain work experience in occupations that help students develop employability skills and aid their educational and career development
• activities providing labour market information to youth including but not limited to wage rates, employment and health and safety standards, human rights, government programs and services and the benefits of returning to school
• activities providing job search services to youth, including but not limited to resume writing, job placement support and interview advice
• activities promoting and marketing the benefits of hiring youth
• activities that provide quality job experience that supports skills acquisition and development
• activities that provide a work experience that occurs in an inclusive, non‑discriminatory workplace that respects the rights of all Canadians, for example measures to support persons with disabilities who face additional barriers to entering the workforce
• activities designed to support research and innovative projects (not limited to the summer period) to identify better ways of helping youth prepare for, return to, and keep employment and to be productive participants in the labour force

6.0 Eligible expenditures

Eligible expenditures are those considered necessary to support the purpose of the funding.

Eligible expenditures include the following:

• overhead costs, including costs related to central administrative functions of the recipient organization that are drawn upon to support agreement activities (such as shared postage, telephones, IT maintenance and head office support)
• the costs of materials and supplies
• wages and Mandatory Employment Related Costs (MERCS)
• staff training and professional development costs
• honoraria and hospitality costs
• printing and communication costs
• travel costs (international travel must be specifically authorized)
• professional fees (such as consultants, IT, technical expertise, facilitation, legal, research, audit, assessment and evaluation)
• capital costs, including small repairs or renovations to support the participation of youth facing barriers. Capital costs for the construction of a building or the purchase of land or buildings are not eligible
• participant costs (such as living expenses, dependant care, scholarships/bursaries, transportation and accommodation)

Where the recipient further distributes contribution funding to a third-party organization to carry out project activities, payments by the recipient to the ultimate recipient to reimburse the third party for the types of expenditures listed above incurred by the third party are also eligible expenditures.

6.1 Retroactive reimbursement

On an exceptional case-by-case basis where a strong rationale has been provided and it is deemed necessary for the success of the project, the program may support retroactive reimbursement of eligible costs a recipient incurred prior to the signing of the Funding Agreement but not earlier than the date on which the application is approved by the Minister or the delegated authority. Eligible costs supported on a retroactive basis shall not exceed 20% of the total eligible costs of the project.

The Department shall not reimburse an applicant for eligible costs incurred should the applicant's proposal be rejected. Furthermore, even if an applicant is advised that their project has been approved and the applicant starts incurring costs, no costs are eligible for reimbursement unless a Funding Agreement is ultimately signed between the applicant and the Minister or the delegated authority. Any costs incurred prior to signing of a Funding Agreement would be incurred solely at the applicant's risk without obligation of payment by the Department.

7.0 Stacking limit

Where possible and appropriate, the costs of an eligible activity will be shared with the recipient and/or with government and/or the private sector. However, where the sharing of costs with the recipient and private sector are not feasible, total government funding (federal, provincial/territorial and municipal funding for the same eligible expenditures) must not exceed 100% of eligible expenditures.

8.0 Method of determining funding amount

Funding amounts for contributions are determined based on factors including:

• scope and duration of activities to be carried out
• validation of reasonableness and fair market value of proposed expenditures
• importance of projected expenditures to success
• reasonableness of overall cost given projected outcomes
• other sources of funding

An appropriate funding amount is determined through the proposal assessment process described in Section 10.

Proposed costs are assessed based on the department's experience and analysis and changes negotiated where necessary to ensure that the level of funding is the minimum necessary for attainment of the results expected of the recipient.

For a limited number of small-scale projects, predetermined performance expectations payments will be linked to participant results at specific milestones at a rate of pay as set out in the agreement.

In some instances, program support for provincial or territorial recipients or their entities may be determined based on an allocation model, rather than through proposal assessment as described above.

9.0 Maximum amount payable

The maximum contribution per recipient, per year is $25,000,000.

The amount of the contribution will be determined by the number of eligible participants who participate or who are to be served. For the purpose of contribution agreements with provincial or territorial governments, the maximum contribution per recipient, per year is $100,000,000.

The maximum duration of funding under an agreement will not exceed five years. Financial support for successful projects and/or activities may be renewed on the basis of performance and results achieved.

10.0 Basis of payment

Contribution progress payments and final payments will be made on the basis of one or a combination of the following.

Reimbursement of eligible expenditures

Payments to contribution recipients are made via regular progress payments based on reimbursement of eligible expenditures; or via advance payments based on a cash-flow forecast. Any unexpended funding remaining at the expiry of the funding agreement constitutes a debt due to the Crown.

Achievement of pre-determined performance expectations

Certain progress payments and final payments are tied to the achievement of pre-determined performance expectations.

Payments may be based on one or a combination of the following performance expectations:

• completion of skills development activities, work experience activities, and high school
• participant remains employed or self-employed or enrolled in school for 6 months
• participant remains employed or self-employed or enrolled in school for 12 months
• participant enrolls at a post‑secondary institution and remains enrolled for two academic years or four semesters
• participant applies for student financial assistance to support participation in post‑secondary education
• other performance expectations that support the objectives of the YESS

In all cases, performance-based payments will reimburse recipients for eligible expenditures and the total amount of the contribution will not exceed eligible expenditures actually incurred. Recipients will use performance-based payments to repay amounts owing from activities.

The full cost of the contribution will only be paid to the recipient if 100% of pre-determined performance expectations are achieved. Contribution agreements will be of sufficient duration to include all performance expectations and allow for 100% recipient reimbursement.

The exact amount paid for each performance expectation achieved will be based on a pre-determined rate or percentage of total contribution amount to be negotiated prior to agreements.

Flexible contributions funding to Indigenous recipients

Contribution funding for First Nations, Inuit or Métis recipients with multiyear agreements may be provided in the form of flexible funding which means that program objectives can be better achieved by providing the recipient with flexibility to redirect funding among the cost categories established in the agreement. It also means that the stability of the relationship with the recipient is reflected and strengthened by allowing the recipient, during the period of the funding agreement, to retain unexpended funding remaining at the end of each fiscal year for use in the next fiscal year to further achieve results towards the program objectives. Any unexpended funding remaining at the expiry of the funding agreement constitutes a debt due to the Crown.

Final payment follows receipt of the final accounting of eligible expenditures and the total amount of the contribution will not exceed eligible expenditures actually incurred or the portion of incurred expenditures eligible pursuant to the terms of the agreement.

11.0 Information required in application and criteria for assessment

Section 11 may not apply in some cases to provincial and territorial governments and their entities.

11.1 Information required in application

Applications will, at a minimum:

• state specific objectives, including milestones and outcomes to be achieved within the period covered by the agreement
• describe the activities to be undertaken
• provide an estimate of expenditures to be incurred and describe contributions from the applicant and other partners
• provide information on the applicant, sufficient to demonstrate eligibility and capacity to undertake activities and attain objectives
• declare amounts owing in default to the Government of Canada; and
• disclose the involvement of former public servants who are under the Conflict of Interest and Post-Employment Guidelines

11.2 Criteria for assessment

Assessment is, at a minimum, based on:

• the degree to which proposed activities support program objectives and priorities
• the need for proposed activities
• the qualifications and track record of the applicant
• demonstration of support required for success, and
• value for money

12.0 Information required for financial and performance reporting

12.1 Contributions

Financial and performance reporting requirements are based on risk as determined through each of the participating department's Risk Assessment, Management and Mitigation strategy. The nature and frequency of reporting are specified in each contribution agreement. Recipients are required to submit progress reports that outline activities completed and demonstrate progress towards achievement of results; and financial reports (including a final financial report) that account for the use of the funding and identify contributions from all sources towards eligible costs. All contribution recipients are required to submit final reports containing information on results achieved as required for the performance management strategy and departmental reporting.

P/T recipients and their entities may in some instances have reduced reporting requirements, but in all cases will be required to account for the use of funding and to provide information on results achieved as required for the performance management strategy and departmental reporting.

13.0 Official Languages Act

The YESS is committed to respecting its obligations under the Official Languages Act (the Act).

To respect the obligations of the Government of Canada under Part VII of the Official Languages Act, where it has been determined that:

• the target clientele who are eligible to participate in a project to be carried out by the recipient is composed of members of both official language communities, and
• the anticipated demand for project assistance by the target clientele in both official languages justifies the use of both official languages

Participating departments are seeking the following commitment from the recipients to:

• make any announcements to the public concerning the project in both official languages
• actively offer project-related services to members of the public in both official languages
• make available in both official languages any documents or other information for the general public relating to the project
• encourage members of both official language communities to participate in the project; and
• provide its services, when appropriate, in such a manner as to accommodate the specific needs of both official language communities

14.0 Effective date of terms and conditions

These Terms and Conditions are in effect as of November 2024.

15.0 Redistribution of the contributions

In projects involving the further distribution of the contribution by the recipient to one or more persons or entities, the agreement will make clear that the recipient has independence in the choice of those persons or entities, with minimal guidance from the relevant department or agency, and will not be acting as the agent for the government in making the distributions.

16.0 Intellectual property

Intellectual property created by a recipient will remain the property of the recipient. Where it is to the advantage of Canadians, and not detrimental to the goals of the recipient, the relevant department or agency may negotiate the shared use of intellectual property developed by recipients or through a third party. The rights to use this material may include further use of data for research purposes and/or publishing the intellectual property on a Government of Canada website or in printed documents and publications.