Paid by mistake from last employer

12345OnceICaughtAFish

Hello everyone,

I was wondering if anyone out there knew the legalities of being paid by mistake?

As far as I understand it, legally they can ask for it back and take you to court if you don't pay. However, in my situation I did not realise there had been a mistake (I worked pro-rata in a school, but left part way through the year. I then received a payment into my account on the last day of the academic year. I assumed this would be something to do with the pro-rata set up I had). Because I thought it was genuine, I spent it. I then got worried that it may have been a mistake and called to check. They confirmed that it was a mistake and have asked for it back.

Since there was genuine reason to believe it was my money, and it's now been spent, do I have to pay it back?

Thanks

saintjammyswine

The short answer is yes, sorry!

Jarndyce

Yes, you do have to pay it back.

However if there are mitigating circumstances or any arguments you can use to suggest you could genuinely not have realised this was an error, and so spent the money in good faith, then it is worth writing to them and arguing.

Especially as you are no longer employed by them, then the only weapon they have is to threaten court action - they will usually reach a deal before they get to this stage due to the costs involved in pursuing a claim.

So try it, and if it doesn't work just seek to negotiate the smallest amount to pay over the longest period.

Or of course you could just pay it back and be done with it!:)

saintjammyswine

Roughly how much are you talking about? £10 or £1000?

DVardysShadow

saintjammyswine wrote: »

The short answer is yes, sorry!

The longer answer is it only has to be paid back if it is wrong.

Because this was paid on the last day of the academic year and OP was working prorata in a school, it may be that OP was paid a constant salary throughout the year and something may have been due. Or any amounts to cover the holidays [not OP's holiday entitlement!] may have been paid on leaving.

OP, you should ask for a complete breakdown of your final salary payment and satisfy yourself either that you were paid correctly to that date or that you were entitled to further payment.

saintjammyswine

If it is an overpayment then it is wrong and they can get it back. Given the title of this thread whether it was a mistake or not is pretty clear.

DVardysShadow

saintjammyswine wrote: »

If it is an overpayment then it is wrong and they can get it back. Given the title of this thread whether it was a mistake or not is pretty clear.

People are all too compliant. If their employer tells them it was a mistake or their letting agent tells them they have to do this or that or a checkout operator starts bossing them around, they don't question.

Even in this case, all the evidence that the OP has that there was a mistake is a phone call. Now, I don't trust what lowly operatives say on the phone any more. If it is a mistake, the employer should provide a half decent written explanation. There are questions surrounding the pro rata which need to be addressed.

saintjammyswine

I totally agree that mistakes must be proven but in this instance OP states it was so I went with that.
Agree about how compliant we have become, very interesting article sort of related about the rise of the hi-viz vests and how people simply follow instructions if the person is wearing hi-viz! BBC news website on the magazine section.