Error in creating Worker: A payroll relationship with this number already exists. Enter a unique val

Summary

Getting Error: "A payroll relationship with this number already exists. Enter a unique value" while creating an employee via HDL and via application

Content

I have changed person numbers/cancelled work relationships so that correct records may be loaded. The same process is being used for all of these cases, but some are not updating the payroll relationship number due to which we are getting error: "A payroll relationship with this number already exists. Enter a unique value". I have attached a word document that lays out the scenario. 

There is a Sev1 SR raised with Oracle: 3-20537780441, but despite multiple OWC's and calls they are not able to provide a resolution for the same till date.