Overpayment Query

Mercyknight_2

My situation is a weird one so any help or guidance would be greatly appreciated.

In December 2008 my work did not pay me and stated that they had been overpaying me (which I have realised and be talking to them to arrange a payment plan) and decided to deduct everything off my salary at Christmas, they realised that this was inappropriate and so reimbursed me and had to give me a further payment to cover the deficit. This is all well and good, however for the last 6 months they have not taken any repayments and I have called them to arrange this.

But to my dismay yesterday my manager had received a phone call saying I had been overpayed £1996 over the entire year, and that they want me to start a repayment plan of £200 (minimum) per month, starting this month. This would not matter if I had not gone part-time and only get paid £650, if they were to take this amount I would not be able to survive. Also I am due to give notice at my work. So what on earth happens when I leave and I will still owe them nearly £2000?! They don't know I'm leaving, but I really really do not know what to do. I've been honest and upfront and been trying to arrange repayments, however they have failed to get back to me. Obviously £2000 is a lot but I really did not realise they had overpaid me this amount throughout the year as it was a constant amount?!

getmore4less

So you have known since before Dec pay that you have been overpaid.

What has happened to the 6 months of payment they should have been taking on the agreed plan.

You should have been saving them away to pay when asked.

If you spent them........

Mercyknight_2

Yeah totally agree with you, they were being saved, however I was never made aware of the amount that I had been overpaid, they never told me the amount and they never made anything clear at all, I've constantly been ringing them to arrange it...

Just spoke to HR and they say they actually want the payment to be £200 minimum, and the amount is less...

Ewarwoowar2

You are in a difficult position and the law on this issue is (a) very complex; and (b) very unclear.

An employee may be able to resist an employer's recovery of an overpayment on grounds of unfairness. In County Council of Avon v Howlett [1983] 1 WLR 605 a teacher was paid more sick pay than he was entitled to. The teacher queried the overpayments but was told they were correct. By the time the council had realised their mistake, the teacher had spent most of it. The Court of Appeal prevented the council from recovering the whole sum of the overpayment.

You would be in a better situation if you had queried the overpayment and your employer had said, incorrectly, that you were entitled to it. Without them making such representations that lead you to believe you are entitled to the overpayment, it will be difficult to avoid repaying the money.

They can't legally deduct the money from your pay unless (a) it says in your contract of employment that they can do this; or (b) you agree for them to do this.

If you don't have a written contract of employment or your contract doesn't say that they can deduct money from your wages in this situation, tt may be worth dragging this issue out until you leave. Once you leave see the citizens advice bureau. They may draft a letter on your behalf setting out how you intend to repay the money e.g. £20 over 100 months.

If your contract of employment says that they can deduct any overpayment from your wage, they are in a strong position. For example, if you give notice to leave, be prepared from them to deduct your whole last wage.

getmore4less

Mercyknight wrote: »

Yeah totally agree with you, they were being saved, however I was never made aware of the amount that I had been overpaid, they never told me the amount and they never made anything clear at all, I've constantly been ringing them to arrange it...

Just spoke to HR and they say they actually want the payment to be £200 minimum, and the amount is less...

Presumabably they stopped overpaying you after Xmas so you would have been able to work it out.

If it has taken another 5 months for them to get back to you that is there problem.

If no term in the contract make an offer you can afford based on your new job if you have one, and use the saved funds to cover you in case they don't pay you.


Looks like recovering overpayments are lawfull deductions (1996 act).

Mercyknight_2

Wow, thanks for the great help...

Yeah I've not done anything wrong and my manager has confirmed this with me. However in my stupidity I never took any names of my calls in December, and now they're saying if I agreed anything with them it would have been over email. Now they're trying to be akward.

I've been calling them for months to arrange this, but now they are denying all knowledge of this. They did send me a strange letter in December so I'm going to use this as proof that I spoke to them...

Mercyknight_2

Further problem...

They are aware that I start a new job in September and are saying that they will pass the debt onto the civil collections service when I leave and require me to pay the outstanding amount or arrange a payment plan after I've left. If I don't arrange a payment plan they said they will take me to County Court and it will effect my credit rating. This is almost threatening behaviour.

What are my rights and their's after I leave... can they take me to court, can it effect my credit rating as they are threatening. I don't mind paying it back, but will have 0 budget to afford it...