Payroll Overpayment Notices from the Employer

Dear PEA members,

We are aware that some members have received emails from the Employer alleging payroll overpayments. We understand these emails and notices may be confusing and stressful, particularly where members have not yet received enough information to understand how the alleged overpayment was calculated.

Receiving an overpayment notice does not necessarily mean that the amount claimed by the Employer is accurate. Members should ensure they understand how the calculation was made and seek clarification where necessary.

The Employer cannot simply declare that an overpayment exists and expect members to accept its calculation. Where there is a disagreement about whether an overpayment occurred or the amount alleged to be owing, the matter may be resolved through the grievance and arbitration process established under the collective agreement. In some circumstances, this means the Employer may be required to prove its claim before an arbitrator.

There is also collective agreement language that sets out a process the Employer must follow before any recovery action is implemented. This process is intended to ensure members receive information and notification about the Employer’s alleged overpayments before they begin recovery action.

Article 32.21, (“Overpayment”) provides that:
When an employee has been overpaid, the Employer must take the following steps before recovery action is implemented:

1. Provide the employee with the reason for the overpayment;

2. Advise the employee of its intention to recover the overpayment;

3. Where the amount of the overpayment is in excess of $50, recovery action will be limited to 10% of the bi-weekly rate, or at the rate at which the overpayment occurred, whichever is less, unless the employee indicates they would wish to repay at a greater percentage. The repayment period will not exceed three years, except by mutual agreement by the parties.

The PEA’s position is that the Employer must fully comply with Article 32.21 before implementing any recovery action. Members are entitled to clear information about the alleged overpayment and the proposed recovery process.

The PEA is encouraging affected members to obtain detailed payroll information so that both the member and the PEA can properly assess the basis of any alleged overpayment and whether the Employer’s calculations are accurate.

Request a Breakdown from Payroll
If you receive an overpayment notice, we encourage you to request a complete breakdown from Payroll before agreeing to any repayment arrangement.

Specifically, members can ask for:

1. A breakdown of all retroactive payments, adjustments, and alleged payroll errors.

2. PSA’s accounting by pay period showing how the alleged overpayment was calculated.

3. Confirmation of whether CPP, EI, pension contributions, union dues, income taxes, and other deductions were included in the calculation.

4. The timeline of when the alleged overpayment occurred.

5. The earnings codes used and their payroll descriptions.

6. Any additional information necessary to understand how the Employer determined the amount alleged to be owing.

Disputing an Overpayment Claim
If you disagree with the Employer’s overpayment claim, please contact me directly. Where an overpayment dispute cannot be resolved, the matter may proceed through the grievance and arbitration process under the collective agreement. The PEA may also file individual and/or policy grievances if we have concerns about whether the Employer has complied with Article 32.21.

At this time, the PEA is gathering information from affected members and seeking clear and transparent accounting from the Employer. If you have concerns about an alleged overpayment, the Employer’s calculations, a proposed recovery arrangement, or the Employer’s compliance with Article 32.21, please contact me directly. Information from affected members will help us identify any common issues and determine what further action may be required.

We recognize that receiving an overpayment notice can be stressful. The PEA is actively monitoring this issue and will continue to support affected members throughout the process. We are looking to schedule a meeting with members in the coming weeks.

In solidarity,

Idil Farah
PEA Labour Relations Representative