Massive overpayment of wages - the practicalities

ikkleosu

Long story, but basically in Nov 2010 my husband was fired from his job for "poor performance". He disputed this and in October 2011 he won his tribunal.

He was awarded £7,000 compensation and re-engagement was ordered.

He went back to work (different department and position) at start of January. At the end of January, instead of receiving what should have been around 3 weeks wages, he received a YEARS!

He immediately told his manager and spoke to payroll. Payroll said it all looked correct but they would launch an investigation. 3 days later, he called up and was told the same thing (there was no note on his account to begin investigation). This happened several times over the next couple of weeks.

In the meantime, he bumped into the solicitor who had represented him at the Tribunal. He told him about the money, he was surprised but then the next day told my husband he thought the payment could be correct. He thought as he'd only gone for compensation, this could have been the back wages which the company had given as part of the re-engagement order.

Eventually my husband spoke to his manager, who put him into contact with someone from HR. Finally, this person got back to him today and said it is an error. They are going to investigate and see about getting the money back.

Now, my question is how is this going to be done? Most cases of overpayment I've read they've deducted it from future wages - I can't see them doing that. I assume we'll have to do a bank transfer to them after an amount is agreed, because in amongst that is his actual wage which will have been massively overtaxed!

Am I right in thinking this is going to take weeks to sort out?

(BTW we've haven't spent any of it. Damn our honesty LOL)

Basically any experience or info on how this is all going to pan out, I'd be really grateful for. I've found the whole thing highly stressful.

gibson123

It's best to pay it all back at once, and the tax will be sorted this tax year. Payroll should be able to organise a bacs transfer (with your help and permission) back into the company account.

Sambucus_Nigra

Or write a cheque out?

ohreally

ikkleosu wrote: »

In the meantime, he bumped into the solicitor who had represented him at the Tribunal. He told him about the money, he was surprised but then the next day told my husband he thought the payment could be correct.

I'd ask the employer to call the dogs off for the time being to enable clarification - especially in light of the comment made by the solicitor in terms of pay arrears.

If there has been an error you need to sit down and agree what will be repaid and the mechanics of the repayment, IE is the employer looking at gross or net, what about pension deductions etc?

Much to clarify i think.

Jarndyce

Did the tribunal order re-engagement or reinstatement?

if the latter, then he would be due the back pay, if the former then he would not, unless there was any order or agreement to the contrary.