Q: An employee was provided annual leave in advance of entitlement of 2 weeks. The employee has worked less than 12 months and has now resigned.
If the final holiday turns out to be an overpayment, can this be deducted from the employee’s final salary payment?
A: Annual leave taken in advance can be deducted from the 8% on termination under Section 23, as long as it is based on what was accrued at the point of termination. For example, they worked for 6 months, accrued two weeks, and took two weeks in advance. If they had taken three weeks, then the third week would be under the Wages Protection Act.