Can My Employers Deduct An Overpayment From My Earnings Without My Permission?

[RATTER15]

My employers have over paid me by about £700. I didnt notice the overpayment as it was during a period of 3 weeks off coupled with me working 21 days on the trot and the company changing the way they pay us so it all got a bit confusing and I didnt notice they paid me extra.

Now they want it back, I understand that they have the right to have it back but can they just deduct it without my permission, it was their screw up so I want some say in how much is deducted from my wages on a monthly basis.

[Maydup]

My understanding is that they are entitled to reclaim the money but they have to agree an acceptable payment plan with you. £1 per month would not be acceptable, but neither would £750 all in one go. Speak to the payroll person and propose something Ratter.

[RATTER15]

Thanks matchup.

[Peter Pedant]

oops I thought no ... but
see here
http://www.adviceguide.org.uk/wales/work_w/faq_index_employment/faq_employment_overpayment_of_wages.htm

and follow urlz

I thought there was a defence that you didnt realise it and had spent it

and I agree any repayment has to be reasonable

but when it happened to me they just clawed it back
but that was about ten y ago
which was ironic as getting them to pay in the first place etc etc
when it happened to me they just clawed it back

[Peter Pedant]

Yeah try to take charge

when I was overpaid as a teenager the wages clerk treated me as tho I had stolen it - and I have always remembered it as it was his mistake
and that certainly wasnt his view

[janbee]

This happened to me a few years ago. I couldn't afford to refund it all in one go so we had to work out a repayment plan. They gave me several options and I agreed to have an amount taken every month for a year. It still hurts though, even after all those years. It was THEIR error !

[BRIGHT SPARK]

If you were paid short and did not realise straight away would you expect your employer to pay you the shortfall by instalments?

[RATTER15]

Bright Spark, to be honest that is a bit of a silly comparison!

[BRIGHT SPARK]

Why do you consider it a silly comparison Ratter?

[DaisyNonna]

Possibly beccause the employer could afford it.

[BRIGHT SPARK]

Daisy......its not about affordability ...its about ethics.

[RATTER15]

No Bright Spark, it isn't about ethics, its about common sense. Not many people can afford to pay back hundreds of pounds in one lump sum from their wages just because an employer screwed up!

[BRIGHT SPARK]

Ratter...you still dont explain why its a silly comparison.Boot on the other foot more like!...Its not your money!...Was it the business owner who made the error or an employee like yourself?

[RATTER15]

It was an employee, however that is irelivant as it won't be coming out of her pocket, the difference being... if I paid that back in one lump sum, I would lose over half of my wages, I would not be able to pay my rent, meet other financial commitments or put food on the table. It is the responsibility of the employer to ensure my wages are correct. Nobody is saying that they won't get their money back, but to cause undue hardship for no good reason is really not ethical and in this situation, most likely illegal.

[furrypusscat]

You need to speak with your employer and agree a sensible amount explaining that it would cause you hardship if taken in one go so this is what you could afford over an agreed period.

[RATTER15]

Thanks guys, I have voiced my concerns and I am waiting for them to get back to me.

[Peter Pedant]

Bright Spark

so dim a comparison you must be an employer.

There is thing called laches and quite honestly with the employers I would expect them ( as they did ) to say too late ! you cant claim now !

or even as happened a lot in the NHS - no you are going to have to do all that for free !

Now the difference is - the difference in arming - the employer is better armed than the employee who has to enforce rights usually by combining ( = form a union ) .

The other difference ( really are employers that thick ? everyone will chorus 'yes' ) is that in the counter-example the cash flow isnt reversed. The employer still has control of the direction of flow of cash.

and thirdly - it isnt about ethics it is about employment law.
The employer can only make certain deductions ( oo I wonder why that is, bright spark ?) and the rest are classed as unlawful.

DOI - used to be a union rep and you can see why, with the employers we have nowadays

[EDDIE51]

I would tell them I could only afford £60 a month repayment so it would be paid off in a year. Try that and see how they react.

[furrypusscat]

I think this may have been mentioned but if you are in a union ask their advice and involve them in putting forward a reasonable agreement. If not in union then I would agree with you on your proposed offer expressing that anything higher would cause you financial hardship.

[BRIGHT SPARK]

Well we must agree to disagree ....the bottom line is...can you afford to wind up your employer?