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Repayment Of Salary
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My son has just received a letter from his employer stating that they have been overpaying him since September 2015 and have requested he pay back £4000. Anyone else had anything similar happen to them. He doesn't know what to do.
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For more on marking an answer as the "Best Answer", please visit our FAQ.Hi Budlet. This is a tricky one as if he has been overpaid, then he has been paying too much Tax and NI deductions. Is he part of a Trade Union? if so consult them, otherwise this link may help you decide which organisation to help you out:
https:/ /www.ni direct. gov.uk/ article s/media tion-co nciliat ion-and -arbitr ation-w orkplac e-dispu tes
I'm afraid its not just a simple case of paying it back when if and how.
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I'm afraid its not just a simple case of paying it back when if and how.
Dare I mention estoppel? Although I doubt it would work here, especially if the employee should have known, then estoppel is unlikely to succeed- but it maybe worth trying.
I agree with asking for a repayment plan- maybe over the same period as the overpayment occurred.
As others have said, the NI and tax overpayments will all be corrected in time.
I agree with asking for a repayment plan- maybe over the same period as the overpayment occurred.
As others have said, the NI and tax overpayments will all be corrected in time.
Yes diddlydo. He rang HR as soon as he got his payslip to query the overpayment. The answer he got was 'it is what is on the system so it must be right'. He asked on two separate occasions and was told 'you must have had a pay rise or something'! He is asking for all his payslips and records of phone calls made to prove that he queried it.
well here is the acas advice
http:// www.aca s.org.u k/index .aspx?a rticlei d=5313
FF how is estoppel gonna work ?
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FF how is estoppel gonna work ?
PP - it probably isn't but I know someone who was to our surprise let off an overpayment when she got a solicitor friend to help her write a letter saying how she had changed her lifestyle etc based on her higher salary and had spent it and wouldn't be able to repay it. Some employers don't like cases like this coming out in the press either , especially if they position themselves as caring employers, and are faced with pictures of someone with their starving kids because the mean employer has taken all the last 3 months pay off them.
If it was me I would not push that one too hard though. I would have kept the extra money in a high interest account for a few months and then said "hey i have just noticed...." and would have offered to pay it back over the same period for which I had been overpaid . Budlet's friend should ask to repay it over 16 months and see what the employer says
If it was me I would not push that one too hard though. I would have kept the extra money in a high interest account for a few months and then said "hey i have just noticed...." and would have offered to pay it back over the same period for which I had been overpaid . Budlet's friend should ask to repay it over 16 months and see what the employer says
He can use the defence of equitable estoppel if it was reasonable for him not to know of the overpayment AND he can show that he spent to money on everyday expenses. The company needs his written permission to make stoppages from his salary otherwise it's an illegal deduction from wages under The Wages Act