Overpaid Wages - What about holiday?

Kilmaley01

Hi, If I'm posting this in the wrong place, apologies, perhaps someone can tell me where it should be posted?

Just over 3 years ago, I started an Admin job for a company who were setting up an NVQ training department, within their existing company. After a couple of months, I realised that there was no work coming in, I was still within my 3 month trial period and things werent looking good for this department to actually keep going. I decided to leave the company as there was no security that I could see. However, due to an Admin error on their part, the company paid me for the following 2 weeks. A total over payment of £447.98.

They did write to me at the time, asking me to pay this money back. However, I (wrongly so) ignored the letter as at the time I didnt have a job, the overpaid money went into my account and into my overdraft so to speak.

3 years later, I have just received a solicitors letter threatening court if I dont pay this money within 7 days.

Whilst I am aware that I was overpaid by an Admin error on their part. I'm not really in a position right now to pay the amount.

My question is, I never signed or was given a contract of employment, (one of the reasons that I decided to leave, as I kept asking for this but never got it) I didnt take any holiday which may have accrued whilst there etc. As there was no contract of employment, do I have to repay this money? Do I have any options.

Any advice would be appreciated and I need to reply to their letter asap to stop any further charges incurring.

Is it worth me writing to the solicitors and saying something like "I am taking legal advice myself and in the mean time could you please forward me a copy of my contract of employment"? Which doesnt exist.

Look forward to your excellent advice.....

Horace

Regardless of whether or not you received a contract of employment by the mere fact that you were working there means that you had accepted the terms & conditions of employment.

You knew that you were overpaid and did nothing about it, you are legally obliged to pay the money back because it wasnt yours to begin with. Sorry this isnt what you wanted to hear but you kept the money which is theft. You can use all the excuses that you want but the fact remains you owe this money.

You need to make arrangements to repay this money.

omen666

Not sure from the not having contract perspective I would say although you were working for them you do have a contract.

Not including the above with regards to the overpayment you will have to pay it back but not in such a way that it will cause you hardship. So offer what you can afford. Before you offer anything though see what others more knowledgable have to say from the contract perspective

Kilmaley01

Thanks Horace, I thought this would be the case but just wondered if anyone knew any different. I will, I guess, have to make arrangements to pay. I would have given them back the money when they paid it, had it not gone into an account that was overdrawn, i.e. I couldnt get it back.

Is there any options or a way of slowing them down tho, no way I can find that money in that short time.

tallyhoh

Make them an offer you can afford. Send an SOA with it to show they can get no more off you.

Kilmaley01

Thanks for all your previous replies - I have another part to this question now. I am in the process of writing to the solicitors to make an offer to repay this amount of overpaid wages, however, I just wondered where I stand with regards holiday pay? I was only there (the company) just over 2 months and was entitled to 2 days holiday per month, but this was only verbally agreed as as mentioned in my previous post, I dont have or never did have a contract. I did not take any time off during those 2 months. Am I in a position to ask for what those 4 days would accumulate to as holiday pay to be deducted from the overpaid sum quoted?

Guess being without a contract is going to cause a problem here??

Thanks in advance.

McKneff

You were probably paid the outstanding accrued holiday pay with your last wage. that is the normal procedure.

DevonGirl

I'm no expert gromit, but I would say that without a contract and having owed them money for 3 years, which has been referred to solicitors it's highly unlikely there are going to reimburse you for any holiday entitlement...

Fire_Fox

There is no legal entitlement to be paid for your holidays when you leave an employer AND you don't have a contract stating the company policy. However, I would perhaps state in your letter than at the time you assumed the overpayment was not an overpayment but rather in leiu of holiday. This may mean you only have to pay back six days.

Kilmaley01

I have just been sent the following quotes from a government training website??

(1)
Holiday Entitlement
On 1 April 2009 the statutory holiday entitled increased to 5.6 weeks (previously 4.8 weeks) The holiday entitlement can include bank holidays. If you already receive paid time off for bank holidays in addition to your holiday entitlement your holiday entitlement has not increased.

So, before 1st april your statutory holidya entitlement is 4.8 weeks.

(2)

Hi,
Under the probationary period, I understand that it is legal for the employer to not allow the employee to take holiday.
However, during the probationary period, does the employee accrue holiday entitlement?
Also, what happens to any accrued holiday if the employee resigns or is terminated at the end of the probation period (let's say the employee has accrued 5 days of holiday at the end of a 3 month probation period)? Is the employer legally required to provide payment in lieu of holiday accrued - and if the employer declines to pay for the accrued holiday, is that illega?
Thanks,
Cath
Cath Panlilio..............

Cath, holiday is accrued from day one of their service, the fact that holiday cannot be taken during their probationary period does not alter this. If their employment is terminated for whatever reason at the end of their probation they are still entitled to receive pay for any holiday accrued during their service. I'm rather curious about why an employer should decline to pay for accrued holiday and what benefits this will bring, especially as the amount of holiday accrued will be quite small anyway.

So is anyone an expert on this?

Pee

I suggest you write and tell them that when you left, you were paid and that money was then swallowed up by your overdraft. You were not aware that there had been an overpayment until they contacted you and you think you would have been entitled to it as holiday pay. Tell them they must take you to court and if the court agree that you owe the money, you will be able to repay it at a rate of £2.50 a week. My thinking is that you will not hear from them again.