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Government Doesn’t Have to Pay Interest on Employee’s Wage Adjustment

Five years after a management officer with the Correctional Service of Canada reached the top of his salary scale, he got a letter saying that an error had been discovered in his file and that he was owed a $6,393 salary adjustment. The Public Service Labour Relations Board ruled that he was entitled to interest on the adjustment but the federal court overturned the Board’s decision. The Crown doesn’t have to pay interest on money it owes unless it’s required to do so by statute or contract, the court said. Here, the Public Service Labour Relations Act didn’t require the Crown to pay interest [Canada (Attorney General) v. Nantel, [2008] F.C.J. No. 111, Jan. 25, 2008].

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