Q:I have a question on Annual leave not taken by employee. Employee initially applied for annual leave and was paid at the higher AWE rate (AWE was greater than OWP). This leave was cancelled by employee subsequently. Should we deduct the higher amount initially paid for the annual leave?

AWE was $2,100.00 and OWP was $1,800.00
Should we deduct the difference $300 (AWE-OWP) now as employee has cancelled his leave?

A: When you paid for leave to be taken you are paying a leave rate not a salary or wage rate (they are two different things).  But up to what works best for payroll, this is an overpayment so the Wages Protection Act applies.