Overpaid redundancy

kibs

Hi, hopefully someone can help.

Basically last September my friend was made redundant and a firm was sorting out the payments for all the employees.

Earlier this year he got a payment of wages owed, as when the company closed no-one was paid. He wasn't entitled to redundancy because he was employed 2 weeks short of the time period, although there has been dispute in regards to this, as wage slips show differently.

The money was paid back in Feb of over a thousand pound, and today he recieved a letter asking for it all back as aparantly this was an over payment.

He is now panicking as the money has since been spent, and as yet has still not managed to find another job.

Can anybody give some advice about this.. Surely this isn't right, and the liquidators who were handling this should have known before payment whether or not he was entitled to anything.

ceridwen

Dont know the answer to this - you will need to check it out legally.

If he really was overpaid - then obviously they will ask for the money back - but that doesnt necessarily mean they have any real hope of getting it.

Personally - I would be checking whether they would have to take me to the small claims court to get the money back out of me and what their chances were of the judge awarding in their favour if they did so. It may be that they could legally get the money back should they do so - but they might decide it was too much hassle to go through that procedure if they realise they will have a fight on their hands - for what is, after all, their mistake. £1,000 is after all to them "small potatoes" when compared to the amount of their time they would have to spend on taking your friend to the court and the risk they would lose. Frankly - if they were to win even - I doubt it would be financially worth their while to pursue your friend. I would imagine these liquidators charge a very high hourly rate for their services and I'm guessing they will write this money off when they see that your friend intends to refuse payment...hope they do...

Another thing I would be checking out is time limits - I presume there must be some time limit in law after which a firm isnt legally entitled to reclaim any money it has paid you anyway???? Worth finding out...

My personal take on this is that I would feel there was a good chance that if your friend refused to repay the money that they would "go away and shut up" because it was, after all, their mistake and they will know that they are being unreasonable to expect it back. If they do bring a small claims court claim against him - well...he'll have some months whilst the process goes through in which to try and get hold of the money in case he has to pay it back. But - I would estimate that there was a good chance of the judge finding in my favour - if I could prove it was their mistake and I had taken the money "in good faith" that it was rightfully mine.

I gather the law is that no-one who has worked for an employer for less than 2 years is automatically entitled by law to some redundancy money - but there WILL be employers who will pay discretionary redundancy money at under 2 years service - so I would just state that I had assumed that it was a "discretionary" redundancy payment that my firm/whoever had decided to award me out of goodwill or as an "ex gratia" payment.

EDIT: just noticed your comment about wage slips showing different dates he worked for the firm.....in that case...that would be another argument with a judge that the liquidators would have....and might not win....