Still being paid after leaving employment.

loufie88

Hi,

Hoping someone can help with the questions below!!

What happens if you continue to be paid after leaving employment?

What are the rights of an ex-employer to claim that money back? It's their money, but their mistake?

Is it likely that for 2/3 months of overpayment you would be taken to court to have wages recovered if you refused to pay?

Is it reasonable to put very low payment plans in place to recover costs, i.e. £10 a month, or would it usually be paid back in one lump sum?

Any help would be greatly appreciated!

~Beanie~

They can and will claim the money back. Yes, you could be taken to court if you refuse to pay.

Sometimes you can argue that you didn't know that it was an error and have spent the money, in these circumstances it is usually possible to come to an arrangement to repay in instalments. In this case you know that you aren't entitled to it, why would you have spent it?

loufie88

"In this case you know that you aren't entitled to it, why would you have spent it?"

It's a hypothetical/just out of interest question at this point!

Cheers.

UpTheCounty

This happened to me, I got one months extra pay more than I should have in my last employer before starting uni (I thought it was just the extra I was owed as they messed our pay up) anyways you HAVE to pay it back by law even though it was their mistake but its on your terms. I pay back £15 a month with no interest...;)

loufie88

UpTheCounty wrote: »

This happened to me, I got one months extra pay more than I should have in my last employer before starting uni (I thought it was just the extra I was owed as they messed our pay up) anyways you HAVE to pay it back by law even though it was their mistake but its on your terms. I pay back £15 a month with no interest...;)

That's helpful!

I got a months wage I wasn't expecting, I'm trying to get my head round whether I'm actually owed it or not! I can't remember if I worked some sort of month in hand at the start of employment, so I'm just going to hold tight and see what happens next month.

£15 a month with no interest is a great loan repayment though!

UpTheCounty

loufie88 wrote: »

That's helpful!

I got a months wage I wasn't expecting, I'm trying to get my head round whether I'm actually owed it or not! I can't remember if I worked some sort of month in hand at the start of employment, so I'm just going to hold tight and see what happens next month.

£15 a month with no interest is a great loan repayment though!

If I were you id put the money in the ISA wait about 6 months-1 year if they ask for it back you've got it (plus the interest from the ISA for free) if not you've got the whole lot for yourself plus the interest. A Win-Win situation

Bobl

Do the right thing and contact the company to ask if you are entitled to it. If you are, no more worry, if you are not, pay it back and no grief in the future.