My first Q is if the manager is stepping down, why are you paying him/her at all? I suspect that to the extent you’re on the hook to continue paying a person after their employment ends stems from the employment contract and/or benefit plan. In that situation, the terms of the contract or plan itself would define your payment obligations.
The other possibility is that by “stepping down” you mean not resigning but going on leave. But the approach would be roughly the same in this situation. First of all, the leave provisions of your jurisdiction’s employment standards laws probably don’t apply to the extent the person is a “manager.” Again, though, the payment obligations would be defined by the source of the manager’s right to take leave–presumably, that would be either the contract or an executive leave policy or program.
Bottom Line: The manager’s rights to pay, if any, would be based not on employment standards or other legislation but the terms of the contract or benefits plan arrangements between the manager and your organization.
Hope that helps and if I misunderstood the Q, please let me know and I’ll take another stab at it. Thanks. Glenn