Employer demanding back over payment of wages

[lise08]

My sister has just left a job and her employer over paid her by £162. The employer then e-mailed her and asked her to send him a cheque for said amount or he would take further action. Where does she stand? does she have to pay it back? can the employer demand the money even though the over payment wasn't my sister's fault?

Thanks :-)

[4getmenot]

yes, surely she knew she had been overpaid and should have said then

[ummmm]

Yes...they can ask for it back. She didn't earn it so it is their money.

[factor-fiction]

Yes, they can demand it back.
If your sister was buying something from a shop and accidentally wrote a cheque for too much money I'm sure she'd expect to get the overpayment back

[dotty.]

I suppose it is easy to misunderstand a final payment as it would inlclude holiday entitlement and any other adfustment, your sister can contact her ex-employer and achnowledge the email, explain that she misunderstood the final salary calculation and ask for chance to return the overpayment, she could ask for a date to be set like say, 28 days. That should be reasonable enough, however, she needs to be sure the overpayment claim is genuine.

[dotty.]

the employer is not allowed to withhold her P45 or reference though

[factor-fiction]

I agree 100% with dotty.'s answer.

[ABerrant]

"the employer is not allowed to withhold her... reference though"

For most types of employment there is no legal requirement for a previous employer to supply a reference. It's good practice for an employer to give one, but they don't have to if your contract doesn't say they have to, except in some regulated industries like financial services.

[thugulike]

Your sister could resist the repayment using the doctrine of equitable estoppel. She must show that it was understandable that she didn't know she had been overpaid and that she spent the money in good faith on everyday expenses. I'm not saying that it's right to withhold the repayment but this is a practical response to the question, not a moral one.

[dotty.]

I meant that the employer cannot refuse to give a reference because of the overpayment issue, they can decline to provide one but the overpayment issue would not have any bearing in the employees work record,

[factor-fiction]

Yes, the doctrine of equitable estoppel can in very special circumstances be used but I do not think it would be considered in a matter involving £162. I think it's more likely to be used if the sum of money was tens of thousands of pounds, you were led to believe the money was genuinely yours and you completely changed your lifestyle- for example if you bought a new house, gave a huge sum to charity or gave up your job because you could live off the money.