Recovery of Overpayment Procedure

1.1 To outline the process to recover overpayments made to employees of the DDSB. 

1.2 The goal is to ensure that overpayments are addressed and recovered in a fair and consistent manner, within a reasonable time frame, while minimizing the financial burden on all parties involved. 

1.3 The recovery process shall consider employment legislation and Canadian tax law as applicable. 

1.4 This procedure is to be interpreted and applied in accordance with the DDSB’s commitment to promoting and upholding Indigenous rights and human rights in all of its learning and working environments. This includes anti-colonial, anti-discriminatory and anti-racist approaches, and actions to provide services and employment that are safe, welcoming, respectful, inclusive, equitable, accessible and free from discrimination and harassment consistent with the DDSB’s Indigenous Education Policy, the Human Rights, Anti-Discrimination and Anti-Racism Policy (the “Human Rights Policy”), the Safe and Respectful Workplace and Harassment Prevention Policy and related procedures.

2.1 “Overpayment” is any payment made to an employee that exceeds the correct amount owed. Overpayment may occur due to administrative errors, system issues or any other unintended issue(s).

3.1 The Board is required to recover any overpayments that occur. An employee is required to return any overpayment that they have received.

3.2 There is a shared responsibility between employer and employee to ensure accurate pay. Employees are encouraged to monitor their pay statements for any irregularities. 

3.3 If an employee identifies or is informed of an overpayment, they shall notify a supervisor and/or contact DDSB Payroll directly by way of email to payroll@ddsb.ca

3.4 If a supervisor or board is notified or becomes aware of an overpayment, the supervisor or board shall ensure that DDSB Payroll is notified.

3.5 Once Payroll becomes aware of an overpayment, the following will occur:

3.5.1 Payroll will confirm and calculate the amount of any overpayment.

3.5.2 Payroll will make contact with the employee to inform them of the overpayment, the amount, the reason for the overpayment and discuss options for recovery.

3.5.3 Upon request by the employee, Payroll will provide a calculation of the overpayment.

3.5.4 Payroll will develop a repayment plan with the employee

3.6 Overpayments will be recovered in accordance with applicable legislation and applicable collective agreement provisions, and tax considerations will be applied as necessary (e.g. T4 adjustments to correct income for tax purposes). 

3.7 Employees are expected and encouraged to work collaboratively with Payroll to find a mutually agreeable repayment schedule.

3.8 For active employees, two initial repayment options will be considered. Payment can be made by payroll deduction or personal cheque/electronic funds transfer. Payment options include:

Option 1: Full repayment.

Option 2: Payroll, in consultation with the employee will determine a repayment schedule. 
Note: for example, a repayment plan could be 10% of the employees’ pay each pay period. 

3.9 Financial hardship will be considered when determining the repayment schedule with the employee.

3.10 Should the employee refuse or fail to cooperate with the recovery or with a repayment schedule, the DDSB may consider additional actions in consultation with the employee and/or their representative and DDSB legal services to rectify the matter. 

3.11 In extenuating circumstances, such as when the employee is expected to return to work from a leave of absence, overpayment recovery may be postponed until the employee returns to work.

3.12 In the event of the death of a current employee, the Board will cease its recovery of anyoverpayment from that employee.

3.13 All overpayments, records, and financial information will be protected under the obligations of provincial and federal privacy legislation.

3.14 Once the overpayment has been resolved, Payroll will communicate with the employee

4.1 Updates to the procedure will occur as necessary to address changes in legislation, process improvements and to ensure compliance with DDSB procedures and policy.