AudiMan

My other half has been overpaid by about £130 since October last year, this is about 20% of her salary (she was having all sorts of changes happen at the time, part time working, term time only - which is why she didn't know it was wrong), they have now said they want it repaid.
couple of questions.
1/. can they ask for it back ? as it's their error !
2/. They have given two repayment options, all in one go (yeah right !) or over the next 12 months.
They are completely incompetent and I have no faith in them getting the correct amount to adjust her tax and pension payments.

Anything we can do ??

Ian

OllyK

Give the CAB a call

BlkKnight

Overpayment of wages

Can employers recover overpaid wages?

Under the common law principles, which a civil court would consider, this depends upon whether the overpayment is due to a mistake of law or a mistake of fact. However, it should be noted that an employment tribunal has no power to consider an application which relates to the recovery of an overpayment of wages under the protection of wages provisions (see below: unlawful deductions from wages).

What is a 'mistake of law'?

It is classed as a misunderstanding or misinterpretation of a policy and in these circumstances wages cannot be recovered.

What is a 'mistake of fact'?

It is seen for example as a clerical error, an accounting error, or a computer error. The employer is prevented from recovering the overpayment if the following conditions apply:

• the employer has led the employee to believe that he or she is entitled to treat the money as their own
• the employee has changed their position to the money, ie spent it
• the overpayment was not caused primarily by the fault of the employee.

BlkKnight

http://www.acas.org.uk/faqs/pay.html

btw

_Meridian_

iTrader: (1)

1) Yes, they are entitled to it back. If you other half does not give it back the law would consider her to have stolen it. You may also find that if she is paid by DD then the company could simply take it anyway.

2) Find someone who understands this stuff! Personally I use the wife of a colleague as she is a pay-roll expert - you must have a friend somewhere who knows someone who knows someone. She could always propose a scheme of her own and see if the company agree.

M

AudiMan

Thanks everyone,
Thought it is the case that she has to give back, just hate being at the mercy of incompetant people !!!, going to push for 24 months to repay, just to be awkward.

Ian

BlkKnight

what was the underlieing reason behind the overpayment?

If was simply a screwup on their part - as I understand it if the funds are not freely available for you to pay back then you don't have to?

From above (taken from ACAS website. . )

As the duration of the overpayment has been going on for such a long time, you could argue that all 3 points have been met.

/edit not qualified, but did study employment law for degree - see a solicitor

ProperCharlie

many companys have a clause about recovery of overpayments in their t&cs, to protect themselves from the above.

richieh

the above is the law and theres no way round it
theres been a few employment law cases related to this
did a little reading up on it as have had similar problems with my wifes employer for the last 18 months
richie

ProperCharlie

fair enough, then.

quite often, companies put stuff into their t&cs which aren't legally enforceable. I guess it just gives them something to throw at the employee in the first instance "look, we've taken the money back, it says we can in your contract..."

Jay m A

iTrader: (2)

I assume she's been overpaid £130 per month?

Rather than just £130

If its the latter then just give it back, lol

RRH

Unfortunately everyone is capable of making an error, and everyone does make erors from time to time.

As an employer I would always attempt to recover the overpayment, but, tbh, I would do my best to make it as painless as possible to the employee.

However, as I am what I would consider a 'reasonable and understanding' employer, I do expect this to be a two way street as far as practical- and would like to think that an employee would point it out if I'd overpaid them. If they have been paid more than they reasonably expected, and assuming the mistake was genuine, should some of the responsibility not be theirs?

Please discuss while I get me coat

BlkKnight

My brother was being overpaid by John Lewis to the tune of about £300 per month - he was only part time - but they were paying him full time hours.

He let them know in writing twice, then gave up & enjoyed the bonus.

AudiMan

All,
Thanks again for the advice, reason she didn't pick it up as an error was for the 4 or so months before this the wages had been wrong, they were in fact up, down, all because the useless payrol dept couldn't work it out correctly for her because she works part time and term time, so wages are calculated pro rata, plus there was a pay rise backdated to April mixed in also !! (typical local gov't).
In answer to one comment, yes it has been £130 per month for the last 7 months, so adds up (especially when you're only earning about £560/month).
She also still has to work there so I don't think she will go down the "I'm not paying it back route" - I on the other would !!!

Ian