Overpaid wages???

davegib20

Hi,

Hope someone can give me some advice here.

I have recently started a new job earning more money with better hours which gives me a generally better quality of life. At the end of my first month when i reveived my wages, everything was in order, at least until i received full wages from my previous employer also. Now, i was owed quite a lot of overtime from my old job which was paid, but they also paid my basic salary. I was under the impression that I had worked a month in hand and should therefore be paid a full month after I leave, however this is not the case which leads me to beleive that I owe the money back. As i beleived the money was mine, I have put it to clearing my overdraft. But now i know they are in the process of writing to me for reimbursement. I understand that i must pay the money back but where do i stand on installments? Can they demand the money in full? would it be a case of bartering to get the best deal I can or do i have to pay how and when they ask?

Storm

I think it's fair to ask to pay back in installments as you genuinely thought the money was yours, however... you really need to get it sorted before the end of the tax year, otherwise it could mess up your tax for the whole year.

Personally, as it went to your overdraft, which I'm hoping you haven't cancelled, you should be able to pay it back quite quickly, and look on it as a bonus that saved you a bit of interest!

If you're at all not sure though, get all your payslips from your previous employer out & go down the CAB to double-check that you're being asked to re-pay the correct amount

oscar52

Are you sure you are not owed this money? It could actually be holiday money that you are owed.

going2die_rich

If I was your employer and I received a letter suggesting you pay installments I'd simply forward your letter on to the legal department.

Why would any business let you keep a hold of their money so not only are they losing interest on that money but also reducing their own cashflow to pay you for leaving?

I think you'll get a legal worded letter if you don't pay the full thing by the number of days they say. Probably be something like 10 days.

Timmne

I'm sure unless it's in your contract you don't actually have to give the money back - my girlfriend told Currys to stuff it when they asked her for an overpayment back and they never chased her for it after the initial letter....

skylight

If they have paid you in error - be sure that they have first! Ask for a breakdown (specific) of what was paid, what is correct and what is not. Remember that *if* you have been overpaid, then you will have been charged Tax/NI on it too, so that will need clarifying.

If they have incorrectly paid you, then yes - you owe the money and you HAVE to pay it back. BUT you do not have to pay it back in one go. As long as you make a reasonable offer of payment - ie/ £5 a month is not reasonable, but £100 is, then there is nothing they can do about it. As long as you keep to the arrangement.

I would agree with the above poster who suggested getting it paid back by the end of the tax year to keep things like P60's simple etc.

davegib20

Thanks for all your help folks, i now know not to bury my head and hope it goes away. I hope they are reasonable and accept an offer for monthly installments but I guess ill have to dig it out of the overdraft if they want it all in one go

jackieb

I'm pretty certain someone at my dh's last workplace was overpaid and they couldn't take it back at any more than 5% a month.

RibenaBerry_2

I agree with other people. They can ask for it all back straight away. Realistically, however, agreeing instalments with you is cheaper for them than having to chase you for payment (legal costs, people's time, etc). As long as you are honest, upfront, and explain that it was an honest mistake, that you cannot afford a lump sum, but are very willing to agree instalments, I would expect them to agree.

nifferwilko

Now I used to work in HR (lucky escape!) and there were a few instances of where employees were paid by mistake after they had left and we never got any money back from them. We did write, but they just ignored us and it wasn't worth trying to persue (it would cost us more in legal fees then it was worth, ie going to court etc) So perhaps you can try the route of telling them no. You can always change your mind later on and offer to pay in installments

donner_kebab

Hiya Guys,

This happened to an ex of mine...he started a new job and continued to get paid by his employer for months, totaling about £7,000 in total! He just sat there and buried his head in the sand and then got in a state when they asked for it all back. He was able to set up a standing order to pay back £50 per month until it was all paid off and this was interest free too. So my advice would be to come clean sooner rather than later, especially if they continue to pay you!

I hope this helps!

Luv Don x