Employre attempting to reclaim overpaid wages

playoldgames

About 18 months ago, I changed departments and job roles with my current employer. In my previous job, I received an additional allowance as I worked shifts, but I don't work shifts in my new role.

I've just been informed that I've been receiving my shift allowance with my salary incorrectly since October 08, and as a result the company are now demanding almost £2,500 from me to repay this amount, and want me to come up with a way I can pay this back. Their point of view is that as this was noted on my payslips during this time, then I should have spotted it and brought it to their attention.

Admittedly, I haven't looked to closely at my payslips apart from the bottom line, but I'm shell-shocked

To make matters worse, I'd just successfully negotiated a pay rise to allow me to meet my cost of living. This has pretty much been wiped out at a stroke, and I'll actually be worse off with any repayment plan.

To make matters doubly worse, I was only intending to stay with the company until the end of this year, as I'm getting married abroad, and using company travel perks to do so. I live about 65 miles from my work, and I was going to find something closer to home once the wedding was out of the way.

Now, with this being dropped on me, I just don't know what to do. Legally, can the company demand this money back, or at least, can they demand all of it as the error was as much theirs as mine, if not more so?

Sorry if this has been a bit disjointed - I'm a bit flappy and all over the place at the moment. Any advice would be gratefully received, even if it's 'Stop panicking!'

Mimi_Arc_en_ciel

Ok, i dont mean this to sound as a dig but:

playoldgames wrote: »

I've just been informed that I've been receiving my shift allowance with my salary incorrectly since October 08, and as a result the company are now demanding almost £2,500 from me to repay this amount, and want me to come up with a way I can pay this back. Their point of view is that as this was noted on my payslips during this time, then I should have spotted it and brought it to their attention.

To be fair you SHOULD be checking your payslips more regulary and to be honest, if they had underpaid you I bet you would be demanding the £2,500. I can not fatham how you have not noticed they have been over paying you £119.05 a month.

playoldgames wrote: »

I was only intending to stay with the company until the end of this year, as I'm getting married abroad, and using company travel perks to do so.

This is wrong and you know it is

playoldgames wrote: »

can the company demand this money back.

Yes! you owe it them, I would speak to the about taking it out of your wages partically rather than a bulk amount

SarEl

Not noticing the error doesn't surprise me. What surprises me is how many employees sign contracts without reading them, never check their wages, and other similarly dense things! But I am afraid yes - the erro may be theirs but the legal position is on their side. You will have to come to some agreement about repayment - and if you fail to do so be aware that taking it out of your wages IS NOT an unlawful deduction. So you must sort this out with them. And if, and I am sure it won't, but just in case ... if it crosses your mind to leave your employment with no forwarding address before repaying it all, they can sue to for it, send in the bailiffs etc. This is a debt like any other.

playoldgames

Ok, i dont mean this to sound as a dig but:

To be fair you SHOULD be checking your payslips more regulary and to be honest, if they had underpaid you I bet you would be demanding the £2,500. I can not fatham how you have not noticed they have been over paying you £119.05 a month.

Absolutely, I should have checked more carefully, but I didn't. To be fair, the only number I look at on the payslip is the bottom line. I didn't spot the overpayment for the first month, and I was paid the same amount every month for the remaining period, so I didn't look very closely.

This is wrong and you know it is

It's possible I haven't made myself clear here, and 'Perks' may have been the wrong choice of word. I'm using company benefits that I have worked for and that I am entitled to, so I don't see how using those for my wedding is wrong. And I don't see how choosing to stay with my employer to use those benefits to have a wedding I wouldn't otherwise be able to afford, and then leaving to find work closer to home is wrong. It's not as if I'm fleecing the company, then saying 'Screw you, I'm off'.

Yes! you owe it them, I would speak to the about taking it out of your wages partically rather than a bulk amount

They've already discussed that with me, and said I can sort our a repayment plan with them - they've been more than reasonable about it. But my point of contention is that although I didn't pick it up on my payslips, neither HR, nor the managers of either department picked up the discrepancy during the transfer of my contract. My feeling is that they are as liable for the error as I am, and should consider meeting half of the amount.

Uncertain

SarEl wrote: »

You will have to come to some agreement about repayment - and if you fail to do so be aware that taking it out of your wages IS NOT an unlawful deduction. So you must sort this out with them.

Are you sure about this?

Whilst I agree that, under almost all circumstances, they have a right to the money back I understood that they could only deduct from wages if the OP agrees. OK, this agreement may already be in place by a clause in the contract but this is not always the case.

Taking what you say literally the employer could deduct 100% of the OP's salary for one or two months (depending on what they earn) with no redress?

Uncertain

playoldgames wrote: »

.......But my point of contention is that although I didn't pick it up on my payslips, neither HR, nor the managers of either department picked up the discrepancy during the transfer of my contract. My feeling is that they are as liable for the error as I am, and should consider meeting half of the amount.

There are a few limited circumstances where this may be true. There was a case recently involving Barclays Bank overpaying a member of staff. This went to court and the bank lost. You would need some good advice if your were to go down this route as the circumstance may be different.

SarEl

Absolutely certain. The recovery of overpaid wages or expenses is one of the exceptions. So yes, actually they could take the whole wages for a couple of months. And whilst the OP may "feel" that the employer should take some responsibility and reduce the amount claimed since it was their mistake - in law they do not have to. So our opinion on whether they should or shouldn't doesn't count.

I hear the rustle of thousands of people rushing to check their wage slips....

playoldgames

Uncertain wrote: »

There are a few limited circumstances where this may be true. There was a case recently involving Barclays Bank overpaying a member of staff. This went to court and the bank lost. You would need some good advice if your were to go down this route as the circumstance may be different.

One thing that one of my colleagues has said that if the company have filed a tax return stating they've paid me a certain amount or I've received a certain amount or something like that, then the period for which they can reclaim wages has passed.

Of course, he also thinks Greece are going to win the World Cup, so I don't know how true that is

SarEl

Uncertain wrote: »

There are a few limited circumstances where this may be true. There was a case recently involving Barclays Bank overpaying a member of staff. This went to court and the bank lost. You would need some good advice if your were to go down this route as the circumstance may be different.

Yes there is. But unfortunately the case revolved around a mistaken salary payment that was contractual, in that they had actually issued a contract saying that they would pay this much (in error - they forgot to adjust it for part-time wages), and then proceeded to pay the contractually agreed (and incorrect) amount. Different circumstances, I'm afraid.

SarEl

playoldgames wrote: »

One thing that one of my colleagues has said that if the company have filed a tax return stating they've paid me a certain amount or I've received a certain amount or something like that, then the period for which they can reclaim wages has passed.

Of course, he also thinks Greece are going to win the World Cup, so I don't know how true that is

I'd suggest you bet on Greece then - because the rest is wrong.

Mimi_Arc_en_ciel

playoldgames wrote: »

It's possible I haven't made myself clear here, and 'Perks' may have been the wrong choice of word. I'm using company benefits that I have worked for and that I am entitled to, so I don't see how using those for my wedding is wrong. And I don't see how choosing to stay with my employer to use those benefits to have a wedding I wouldn't otherwise be able to afford, and then leaving to find work closer to home is wrong. It's not as if I'm fleecing the company, then saying 'Screw you, I'm off'. .

I thought you meant put it through company expenses

Technically tho - you do owe the cash and need to sort out a repayment plan