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An employee was hired in January 1999. By November 1999 he had erroniously been paid 168 hours of vacation, (which spiraled out of control every year after that.) In January of 2000 he would have earned 80 hours of vacation. Nine years later and 2 payroll clerks later the error has been found. The accruals have been adjusted and now the employee is upset because he has no vacation time available to take. The union is stating that we are unjustly deducting his accruals to make up for an error that the company made. The problem is that the ones who made the error are no longer employed and our corporate office that is out of state does not fully understand the situation.
Any feedback is greatly appreciated.
Thanks.
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If you can prove that you paid his vacation in advance than you can stop the accrual calculation until it pays back the vacation time he was overpaid. The only problem is that if he terminates his job you can not recover any of the loss. You must pay him for any hours worked upon termination and you can not deduct anything from his paycheck. If he takes it to the labor board and says that you failed to pay his accrued vacation time; don't worry, as long as you have a record showing that he has been paid for all his vacation and then some, you should be in the clear. As far as the company is concerned, they should support this action and tell the employee to suck it up. Just remember you have to do what is in the best interest of the company. If you do that they should understand. you may want to pass it by upper management and check the company policy before you take any action, just to be safe. Remember document everything to cover your own #@$!
TG
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