money to wrong account

nigeldigimate

Hi just hoping someone can help me i have 2 sons one is good with money and the other lives on the line Thay both worked for the same company son 1 has overdraft of 2500 and the bank has closed account and is chasing money son 2 s fine son 1 left the company 4 months ago to move on but son 2 has just had this months wages plus a large tax rebait paid into son 1 account by mistake employer is saying he has to chase son 1 for the money is this right or can employer clame back from bank

olly300

This should actually be in the employment section.

The employer should have put in the contract of employment that if they wrongly pay an employee they have a right to claim back the money. They can either ask for it back in one lump sum or take it from the next month's wages whatever is easiest for them.

As the law stands if you wrongly receive a sum of money from someone and it's clear that you shouldn't have received it, it's not yours to spend.

The only time an employer will ask the bank for the money back is if they realise their mistake before the BACs payment goes through.

moneygoround

There are two very separate issues here that the employer needs to deal with separately; the fact that the two employees involved are related is irrelevant.

If they have failed to pay son 2 his rightful salary, they are in breach of his contract of employment; employment law states that there must be a defined payday on which an employee can expect to be paid. The employer has underpaid son 2 and must rectify this situation immediately.

The employer has overpaid son 1 and must seek to recover this money from son 1. This is a totally separate issue to the underpayment to son 2. The employer has no right to withhold payment to son 2 until money is recovered from son 1.

onlypaddy

i think the issue here is that the company will have paid money into the closed account of son 1, and it has been swallowed up by the overdraft...

unfortunately, i have a feeling son 1 is liable to repay it but the bank will not return it. bit of a sticky situation but at the end of the day it lies at the feet of the company for putting it in the wrong account.

don't know where to go from here though