
Overpayment – Recovery action by employer – Whether subsection 155(3) of the Financial Administration Act applied – Whether overcrediting vacation leave credits can be characterized as an overpayment – Detrimental reliance – Management rights
As a result of an administrative error by the employer, the grievor was credited with excess annual leave – the error arose when the grievor retired from the employer then returned to work several years later – upon reviewing her annual leave statement, she felt that there might be an error, and she approached her supervisor with her suspicions – the employer assured the grievor that she had received her proper entitlement – five years later, the employer, upon discovering the error, began recovering the equivalent monetary amount – the employer based its actions on subsection 155(3) of the Financial Administration Act – the grievor filed a grievance contesting the employer’s recovery – the doctrine of estoppel did not apply to this case as there was no proof of detrimental reliance by the grievor – the adjudicator held that subsection 155(3) did not apply under the circumstances – that subsection applies to overpayments of monetary amounts that are of salary, wages, pay, or pay and allowances – the collective agreement did not specify any mechanism permitting the employer to effect the recovery – the employer was able to use its management rights to effect the recovery, but those rights were subject to reasonableness – under the circumstances, the recovery was unreasonable.
Grievance allowed.