Employer cannot unilaterally withhold final wages to set off a previous overpayment without court authorization.
The grievor voluntarily terminated his employment, at which time the employer withheld his final wages of $756.96 to set off a $7,060 overpayment of room and board allowance mistakenly paid to him.
The union grieved the withholding of wages.
The Ontario Labour Relations Board held that section 8 of the Employment Standards Act strictly prohibits an employer from unilaterally setting off or deducting amounts from an employee's wages to satisfy a claim, requiring the employer to seek its remedy in court.
The Board directed the employer to pay the withheld wages plus interest.
The United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada v. The Electrical Power Systems Construction Association, 1985 CanLII 987
