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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.
