Employer overpaid wages but now wants money back!

geek84

Hi Folks

I'n writing on behalf of a friend who is a secondary school teacher.

The LEA has overpaid his wages by about £3k, going back to the last 15 months. They now want the money back.


Apparently, my friend has spent that money! Does he have to give the money back? Isn't there a law saying that if the employer overpays you by mistake then you don't have to give the overpaid money back?

Thanks in advance for your response.

Gordon_Hose

Yes, she does have to give back overpaid wages. However, her employer should agree to a payment plan that is manageable.

http://www.adviceguide.org.uk/index/your_money/employment/faq_index_employment/faq_employment_overpayment_of_wages.htm

BackOnTrack

This can depend. If your friend knew he was be over paid then it is very likely he will have to pay it back, though he should be able to agree installments for this. If your friend was not aware of the overpayment and ould not reasonably be expected to realise the overpayment then he may not have to pay it back, but it may be wise for him to pay it back whether he is required to or not.

Regardless of this he should be able to arrange to pay it back in installments.

Reggie_Rebel

How can you not be aware of a £3k over payment?

No wonder teachers get a bad press

SarEl

BackOnTrack wrote: »

This can depend. If your friend knew he was be over paid then it is very likely he will have to pay it back, though he should be able to agree installments for this. If your friend was not aware of the overpayment and ould not reasonably be expected to realise the overpayment and does not have the means to repay it then he may not have to pay it back, but it may be wise for him to pay it back whether he is required to or not.

Regardless of this he should be able to arrange to pay it back in installments.

Slight but rather crucial legal amendment - not being aware of an overpayment and not being reasonably expected to realise it isn't the full story!

ManicMum

I think he should pay it back - this is public money after all. It's the same with inland revenue or tax credits - they will recoup the money. I am sure on a teacher's salary, he can afford a few quid a week over a period of time.

Tiddlywinks

Didn't he ask for his pay scale point when he applied for / was offered the job?

I bet if it had been an underpayment he'd have noticed and wouldn't have needed HR to point out the error.

thorsoak

If he had discovered that he had been underpaid by £3k, he would be jumping up and down, demanding it - now it's time to put up and shut up - he should try negotiating paying it back over a year or so.

Uncertain

It really gets up my %$£& the way people jump on this forum and attempt to ram their claimed "morals" down people's throats. :mad:

The OP asked a technical question with the word have underlined. I wonder if these people would be so moral if they were in the same position? :A

No, thought not. :rotfl:

To answer the OP's question........

There are very few circumstances indeed where a person can legally hang on to an overpayment such as this. There are a few, exceptional, combination of circumstances where it is possible.

If your friend thinks they might be in this category then they need to get some expert legal advice. I suspect they will have quite a fight on their hands.

I suspect the LEA will pursue the matter in the County Court if your friend doesn't agree to repay. However I doubt they will go further, if there is any reasonable legal question, for fear of setting the "wrong" precedent were they to lose. (A County Court decision does not set a precedent as another judge on a different day can take a different view).

Whether your friend feels this is in their best overall long term interest is another matter.

cashbackproblems

I know some people i think are just jealous that others have work/good qualification that put them down with misinformation e.g. mands etc.

I had this problem and fought to avoid paying but they persisted, in the end i said to them all i can afford to pay u is £50p/m take it or leave it and they accetped!

AnonymousForObviousReason

Yes they have to pay it back, even if they could get away with not paying it could damage future prospects. The employer is likely to accept repayment negotiations. Your friend should contact their union for more help.

This equates to a repayment of £200 per month and could easily be confused with the numerous awards a new teacher may get are they sure it is an overpayment? Ask why the mistake happened on LEA end for clarification.