Overpaid by employer

[tequilamock]

It has just come to light that my employer has been overpaying me for several months. This is a new job, and the hourly rate is very confusing. It was never properly explained, and, although I noticed I was receiving more than I expected, it wasn't so much that I thought there had been a mistake made.

Now they are asking that I pay it back. It's �1,800, and I simply don't have it!

This is a seasonal job, so it comes to an end in 8 weeks time - so they wouldn't get it from my wages.

I have asked them to work out a repayment schedule, but, even if this were over a year, the repayments would be �150 a month! I work because I need the money!

Anyone know how I should approach this, or what the legal stance is on it?

[Twenty20]

I find it difficult to believe that anyone could fail to notice an extra �1800 in their wage packet over several months. Hourly rates aren't that confusing.

Legally you obviously have to pay it back. Present them with a repayment schedule that you can afford. If you can't agree it with them then I'd suggest you take out an overdraft and pay the money back that way and pay off the overdraft over a period of time.

Maybe you should have put the extra money to one side and not spent it until you were sure they weren't going to come looking for it, especially as you admit that you noticed you were receiving more than you expected.

[tequilamock]

Thanks for your response, but you are being unfair. I was TOLD my hourly rate was �15. When I started, I was then told it was �7!

I assumed when I received my pay packet, that the original amount I was advised of at the interview was correct.

As I said - and I do not lie - confusing!

[R1Geezer]

legally you have to pay it back so do the best deal you can on the monthly payements, but they are within their rights to demand the whole lot + interest but they'll accept a reasonable offer.

[chas2008]

im sorry , but if its owed its owed...I knew someone on a temp contract with the NHS after they left she kept getting paid,she never touched it or spent it , got a knock on the door one day and mr plod was there and she was arrested.
She paid it straight back but still ended up in court and a police caution against her name.
I dont think think for one one minute this would happen to you but it really depends how far the employer would take it .
You must have been on good money if you were overpayed that much over a few months and didnt think there was a mistake !!! could do with a job like that myself

[Androcles]

I don't understand this - you say you were told that the rate of pay was �15 per hour and then told it was �7 ph when you started and didn't object to being paid less than 50% of what you say you agreed...... I think a lot of people will find that very strange. Did you get the offer in writing? Why didn't you object? You say "it wasn't so much that you thought a mistake had been made" - and then you say they paid you the original which is �8 an hour more, and you didn't really notice it? Sorry don't buy that.

[chas2008]

and this seasonal job was ?...

[tequilamock]

Oh for heavens sake! Stop the accusations! I came here for advice and help - not this!

I don't need to explain myself and I have never said I wasn't going to pay it back!

Don't 'buy it' if you choose not to!

[redcrx]

all you can do is come to a compromise. If you ask them they may take installments but dont expect them to wait years for the money, tbh i cant see that they will let you leave in 8 weeks owing the money but they may.

Just ensure that any tax and NI that you paid against it is taken into account when paying them back

[tequilamock]

Thanks Red. I am trying to reach a compomise with them now... Not going well.. They say either pay it all back by next Thursday or work the remainder of my contract for no money... Neither are fair I believe...

[redcrx]

neither seem fair to you but, as already said, you were likely to be aware that it was overpayment and as such shouldve known youd have to pay it back eventually.

the blame lies with both, though it could be said that you only have to keep an eye on your own wages

but do make sure that they have the correct figure.

[tequilamock]

I have taken legal advice. I have been advised that what they are suggesting IS unreasonable and that any court of law would agree with that. I am meeting with my line Manager tomorrow to suggest a repayment structure. If they don't agree to this, I will speak to ACAS, or take further legal advice.

[thugulike]

You could go to CAB for free advice. I have used the doctrine of equitable estoppel in similar cases and my submissions have always been successful. Post this in Law and hope buildersmate is watching.

[buildersmate]

I am watching, but I can't help further with it.
There is a section in the Employment Rights Act 1996 (Part 2, s13 and s14) that deals with this. But it basically says in s14 that an employer can reclaim money from wages (as one of the excepted deductions to the clauses in s13 which deals with unauthorised deductions) in respect of overpayment of wages - so that doesn't help you. The principle is that you have to repay it - but I think we all agree on that - it the rate of repayment which is being discussed.
I reckon your best bet is to try and negotiate a sum over the next 8 weeks which is 'reasonable' and get them to write-off the rest. They might do it - I have done it before on rare occasions when we (the employer) has made a serious ****-up.