Salary Payment While Waiting for Sick Claim to be Accepted

What HR practice do other Municipalities follow when a salary employee is waiting for a short term disability claim to be accepted? Can the employee use sick time and/or vacation time? If yes, when the claim is accepted and the insurance payment is issued to the employee and the employee would like their vacation time back, do they buy back the vacation time?


  • In Revelstoke, we allow staff to use their sick/vacation time if they have it. If the short term disability insurance pays them for any of that time, our payroll clerk reverses the use of the sick/vacation time when the payments from the insurance company are received.

  • In Abbotsford, yes we would allow the employee to use vacation time after their sick bank has been depleted.
    In terms of repaying the employer, it depends on whether or not the collective agreement/contract has a subrogation clause. Here is an excerpt from one of our agreements where it is specifically referenced (within an article on sick leave): "Where any Employee receives reimbursement for lost salary from any third party for any absence, the Employee shall reimburse the Employer for all Sick Leave paid during such absence and the Employee shall be re-credited any Sick Leave credits used."

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