Got overpaid for 18month period- over 6.5k!

egraphixstudios

I started with my current employers in June 2008. I recieved a P60 in May 2009 - showed around 20k for the yearly earnings (which is right- my salary should be around 20k).

I got my p60 for 2009-2010 period and in there i noticed it had my yearly earnings as 25k! I questioned this with the HR dept and they eventually came to me saying they had made a mistake and placed me on the wrong grading since day 1 and are now asking for the re-payments.

I have been asked to re-pay over 6.5k! :eek:

Now where do i stand? the mistake was done by the HR dept and they have said they were responsible for this mistake. But they are partly trying to place the fault on myself for not looking at my wage and *apparantly* calculating my yearly earnings...they are simply trying to pass the buck.

Please advise...

Annisele

This case might be of interest to you - it's from March 2004, but so far as I know the law is still the same (I'm not a lawyer though).

The general position is that where money has been paid by mistake, it has to be returned. However, you might have a defence of 'estoppel'. You'd have to show, amongst other things, that your employer told you that the money belonged to you, that you honestly believed that the money belonged to you, that you have since spent the money in reliance on that belief, and that it would be inequitable (unfair) for you to be required to repay the money.

Do you have a union? If so, go see your local rep.

Can you actually afford to pay the £6.5k back?

egraphixstudios

I'm with Unison- I will give them a call and see what they say tomorrow.

As for the repayments, the employer will takea certain % form my pay, the amount will be decided by myself with consideration of the employer.

I can sqeeuze about £100 / month, but that would mean around 5 years to pay it back; which to me is not acceptable as I may not be with the same employer for another 5 years...

pinkshoes

Did you not think to check that a £20k salary has a monthly take home pay of about £1310, yet you were getting about £1600?

I would be very wary about allowing them to deduct it from your monthly salary! I would offer them £50 a month if £100 is going to be a squeeze!

dmg24

egraphixstudios wrote: »

I started with my current employers in June 2008. I recieved a P60 in May 2009 - showed around 20k for the yearly earnings (which is right- my salary should be around 20k).

If you started in June, you knew that you were not entitled to a full years pay within that financial year. Why did you not query it then?

I would not go down the estoppel route unless you really know what you are talking about!

property.advert

I would not give them anything. You have 4 options.

1. Stand your ground and insist on the 25k per year going forward as that is what you thought it was.

2. Get shafted and effectively see a salary of £13.5k this year

3. Say ok to 20k but they write off the excess.

4. Get a new job.

I'd go for number 1.

woody01

property.advert wrote: »

I would not give them anything. You have 4 options.

1. Stand your ground and insist on the 25k per year going forward as that is what you thought it was.

2. Get shafted and effectively see a salary of £13.5k this year

3. Say ok to 20k but they write off the excess.

4. Get a new job.

I'd go for number 1.

and make yourself look stupid in the process.

The Op clearly knew they were being overpaid, but decided to keep quiet.

Uncertain

As others have said, under most circumstances this will have to be paid back at a reasonable rate.

You could investigate if either of the two "loopholes" mentioned above apply to your case. I suspect the chances are fairly slim but not impossible.

You also need to consider the effect this would have on your relationship with your employer. Will your bosses see this as all HR's fault or would you be seen as an untrustworthy troublemaker they could well do without? Of course this "should" not happen and you have some legal protection, if they were to dismiss you for asserting a legal right, but we do live in the real world!

Obviously if you are intending to leave in the near future then this tips the balance towards trying to exploit any loophole that may exist.......

egraphixstudios

I have managed to get my pay grade increased to 25k- which has been confirmed by senior management and HR.

I am trying to get the overpayment written off or reduced. I have never had any sort of debt and plan not to be in any.

egraphixstudios

I have the support of my immediate manager and his PA. My manager is furious with the fact that HR dept messed up. He has told me its shouldnt be my burden to pay this off.

egraphixstudios

I have spoken to my department director and he has apologised for the mis-hap. He mentioned if it were upto him that he would write the debt off, but since the HR director has to be involved the amount due may be written off if agreed, otherwise the amount due would be reduced and I would decided on payment amounts that suits me (within reasonable terms). The employee who placed me on the wrong grading since day 1 will undergo a disciplinary action to the highest level and she may very well loose her job.