Overpayment
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Athene88noctua
Posts: 5 Forumite
Hi all,
I really hope you can help me with some information.
After my maternity leave I asked for three month unpaid leave and my employer agreed. I had all my holidays from the last year so I took it in the first six week of the three months. My first payment was OK but the second time I received to much money- I was overpaid. I informed my boss, she wrote to the payroll, and they answered that is "correct". I started to work, one full month gone, I got my payslip but no salary. When we tried to find out what is the problem, the payroll said, it is because of the overpayment and I still owe some money and they will still deduct my next salary...
I got two questions
1. They said it is correct but despite this information they took back the whole amount without asking or informing me, leaving without salary since February. Is it legal? I tried to look after on the internet but it is not clear for me that do they have a right to deduct my salary without written notification.
2. Is there anything that I can do? I was without salary for three months which was really uncomfortable especially with a little child. Can I ask them for some compensation?
Thanks for your help
I really hope you can help me with some information.
After my maternity leave I asked for three month unpaid leave and my employer agreed. I had all my holidays from the last year so I took it in the first six week of the three months. My first payment was OK but the second time I received to much money- I was overpaid. I informed my boss, she wrote to the payroll, and they answered that is "correct". I started to work, one full month gone, I got my payslip but no salary. When we tried to find out what is the problem, the payroll said, it is because of the overpayment and I still owe some money and they will still deduct my next salary...
I got two questions
1. They said it is correct but despite this information they took back the whole amount without asking or informing me, leaving without salary since February. Is it legal? I tried to look after on the internet but it is not clear for me that do they have a right to deduct my salary without written notification.
2. Is there anything that I can do? I was without salary for three months which was really uncomfortable especially with a little child. Can I ask them for some compensation?
Thanks for your help
0
Comments
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1) Yes , they should not have made a deduction that took the amount you received below the minimum / living wage. But you would still owe the money back.
2) of course not! You asked for three months unpaid leave, and that was your choice. The error made by the employer - and you knew it was an error no matter that they said it wasn't- didn't negatively impact on your finances. So why would they now compensate you for the " discomfort " of having no income over a period of unpaid leave that you asked for.0 -
1) Yes , they should not have made a deduction that took the amount you received below the minimum / living wage. But you would still owe the money back.
2) of course not! You asked for three months unpaid leave, and that was your choice. The error made by the employer - and you knew it was an error no matter that they said it wasn't- didn't negatively impact on your finances. So why would they now compensate you for the " discomfort " of having no income over a period of unpaid leave that you asked for.
What happens if she is being paid the minimum wage? How can they get that back?0 -
ScorpiondeRooftrouser wrote: »What happens if she is being paid the minimum wage? How can they get that back?
They wouldn't be able to deduct is direct from her wages but they'd still be entitled to chase her for the money. Likelihood is a payment plan would be arranged to pay it back over a period of a few months.0 -
Thanks for the answers.
They already deducted my salary, I haven t received money since February despite I started working on 28th of April.
Do you know what is the exact name of the law which says they can not take back the money without mi writtten consent?0 -
Unfortunately this gov.uk page suggests they are entitled to recover the overpayment, even if it takes you below the minimum wage.
https://www.gov.uk/understanding-your-pay/deductions-from-your-pay0 -
Unfortunately this gov.uk page suggests they are entitled to recover the overpayment, even if it takes you below the minimum wage.
https://www.gov.uk/understanding-your-pay/deductions-from-your-pay
I would have argued that the payment was no longer accidental, the minute the employer confirmed that the payment was correct, the OP having questioned it. It becomes an error - which is a different thing.0 -
Athene88noctua wrote: »Thanks for the answers.
They already deducted my salary, I haven t received money since February despite I started working on 28th of April.
Do you know what is the exact name of the law which says they can not take back the money without mi writtten consent?
No, because there isn't one. This is an overpayment of wages and may be taken back whether you consent or not. What you are thinking of is section 13 of the Employment Rights Act 1996, but section 14 exempts overpayments from this requirement. Assuming it isn't in your contract anyway, which it often is.
As for not receiving any payment since February, whilst I understand that this is not something you had bargained on, you did have money that you weren't entitled to in February. I accept that it would be nicer of your employer to have arranged a repayment plan, but they aren't required to. All you can do is ask. Not repaying it is not an option, and right now they have the money, and they are holding it legally, so they don't have to do anything at all.0 -
Thanks all your help
Fortunately I have no serious money issues, but imagine I am a single mother, with no savings and a part time job and I haven t got salary for for months...I understand what you said, but I still feel that this procedure wasn t totally lawful. At least they should have written to me and ask me about a repayment plan in case I am struggling financially. As I understand an ACAS article on the net, they had no right to take back the money without written consent.
And an another thing which was really strange on my payslip, all unpaid holiday was a negative amount but it should be zero (if I am on unpaid holiday I simply haven t got paid but it looks like a deduction) Any explanation for this?0 -
How long have you worked there for?0
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Athene88noctua wrote: »Thanks all your help
Fortunately I have no serious money issues, but imagine I am a single mother, with no savings and a part time job and I haven t got salary for for months...I understand what you said, but I still feel that this procedure wasn t totally lawful. At least they should have written to me and ask me about a repayment plan in case I am struggling financially. As I understand an ACAS article on the net, they had no right to take back the money without written consent.
And an another thing which was really strange on my payslip, all unpaid holiday was a negative amount but it should be zero (if I am on unpaid holiday I simply haven t got paid but it looks like a deduction) Any explanation for this?
If you were a single mum it would make no difference. You opted for three months unpaid maternity and that is what you should have budgeted for. If you didn't, that's your problem.0
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