Overpayment following redundancy

Pampergirl50 · 2 February 2017 at 5:19PM

I was recently made redundant and when I received my final payslip I noticed I had been overpaid by £6000. I contacted my employer immediately and made them aware of the error. They also replied straight away, thanked me for advising them and said they would look into it. Since then I have heard nothing. I know I am not entitled to this money and repaying it is not an issue but do I have a legal responsibility to keep chasing them or is the onus on them now as I have informed them? If I just send them a cheque for the overpayment then I am going to be out of pocket as I have been taxed on part of the funds. Any advice would be appreciated.

TBagpuss · 2 February 2017 at 9:55PM

How long has it been?
You've notified them already, so legally I don't think you have an obligation to chase.

Personally, I'd probably follow up, assuming that there has been at least one complete payroll cycle since you contacted them.

TELLIT01 · 3 February 2017 at 12:04PM

A follow up call / e-mail can't hurt. You could always try putting, in bold text, that if you hear nothing from them by a certain date you will assume that the payment is actually correct, that their lack of response is confirmation of that fact, and they have no further right to reclaim the payment. I'm sure that will spur them into action.
I'm not suggesting for one moment that this would have any weight in law, but it'll put the frighteners on somebody for sure. :-)

nic_c · 3 February 2017 at 11:51PM

Just ring fence the money in your account until they get back in contact. They will have to take the tax into account and the timescale for a response depends on the size of your ex-company's payroll team and their workload. Legally you have notified them, but it is up to them to give you a reconciliation figure of how much to pay back.

Kynthia · 1 March 2017 at 9:43AM

I'd chase them again just to try and get it resolved but wouldn't put myself out too much unless I was on benefits and this extra money was detrimentally affecting them. Then I'd put the money somewhere it would earn some interest for me and where I wouldn't spend it accidently.

TBagpuss · 1 March 2017 at 10:43AM

How recently? will there have been another pay run since the payment was produced?

I would follow up with a letter, keeping a copy and obtaining proof of postage, to state thatyou contacted them on [date], have heard nothing frher, and if you haven't heard by (say) 3rd April will take it that the sum is accurate. I'd add in that if they consider it is incorrect, you will need them to provide you with a breakdown of the calculation and confirmation that they will esure that HMRC are ifomred of the correction so that you are taxed correctly.

But as othershave said, ring fence it in a separate savigns account as they could claim it back for (I believe) up to 6 years.

Silvertabby · 1 March 2017 at 1:13PM

As above, but send the letter by registered post (or whatever it's called now) so it will be tracked and signed for.

Pampergirl50 · 16 March 2017 at 11:16PM

Thanks for your replies. I have emailed them twice now and they just say they will look into it. I'm not contacting them again as I feel I have done more than enough to try and sort this. I've put the money in premium bonds until they ask for it and I know I can get to it quickly and who knows, I might strike it rich!

no1catman · 17 March 2017 at 10:53PM

How are you so sure that it is not a valid payment due to you?

Prothet_of_Doom · 17 March 2017 at 11:04PM

Me ? I'd put it in an interest bearing account and leave it, gaining interest. If it was still there after 2 years I'd put it into a pension and claim tax relief on it.

You've told them enough times of your concerns

Majestic12 · 23 March 2017 at 10:41PM

It happened a month and a half ago and the company don't seem too bothered about the overpayment? They must not miss the cash!

Overpayment following redundancy

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free