Question:

If an employee takes their accruing leave before commencement of Parental Leave they are paid at their higher of average or ordinary. When they return from Parental, and in the meantime their anniversary date for leave has occurred, our payroll system adjusts this previously taken AL to be paid at their average rate only and thus a claim occurs because of overpayment. I actually see this as correct. Does anyone else have this situation? Or does management not allow accrued leave to be taken before Parental? I’d like to hear how other payroll professionals treat this.

Answer:

Yes what your system is doing is correct.  Section 42 of the Parental Leave and Employment Protection Act states any entitlement that happens during a period of parental leave stops OWP and only AWE can be used until the employee has been back in the workplace 12 months.