employee overpaid in error

apples1

Uncertain wrote: »

I though I had answered Q.1 in some detail..

You did, my reply was to another post. Thank you for your help.

apples1

whitewing wrote: »

apples1

How did you come to discuss the matter with the employee recently? Did you tell him as soon as you realised? Did you realise as he was sitting there? Did you call him in to discuss it?

You do need to seek legal advice on the matter, purely because if you get it wrong it will potentially cost you dearly.

As an employee I would be seriously fed up if this kind of situation happened to me. When I was paid monthly, the payment was rarely the same each month because there were different number of days in the month or holidays or overtime etc. It wouldn't have been that easy to spot on that kind of salary in the jobs I have worked.

I do run a small business now. Smaller than yours. You need legal advice specific to your situation to determine the implications of claiming it back and also the implications of not claiming it back. Plus, as I said before, what will you do if he defaults on repayments? I think it would be unreasonable to expect it back as a lump sum quickly, but the law may have a different opinion.

You also have 3 months more nearly to work with this fellow, so you are going to have to handle that as he is likely to be quite worried or quite angry about the situation. Again, you must get proper advice.

I was not sitting with them when I realised but I did tell them at the first opportunity. I came on here to get the legal answer thinking it would be a straight yes or no but I can see now there isn't and will take it off the board to get it checked. Thank you for your help. My instinct right now is to come to an agreement with him to repay some but not all of the money but I will take advice first.

Thanks to all who have posted. Signing off now.

Uncertain

apples1 wrote: »

It was that I was trying to establish - whether legally the money can be reclaimed. Nothing ever that simple I guess! I don't know what IIRC means or AFAIK but I don't think going below minimum wage would be a problem as he earns approx £30 per hour.

So, assuming he is full time we are talking of £100 a month out of a £50K annual salary!

If you can't afford this, which would otherwise be extra taxable profit, then you have serious business problems - sorry!

Uncertain

apples1 wrote: »

My instinct right now is to come to an agreement with him to repay some but not all of the money but I will take advice first.

Thanks to all who have posted. Signing off now.

That is probably a sensible compromise.

apples1

Uncertain wrote: »

So, assuming he is full time we are talking of £100 a month out of a £50K annual salary!

If you can't afford this, which would otherwise be extra taxable profit, then you have serious business problems - sorry!

He is VERY VERY part time!

I really must go now, I just cannot help but correct that inaccurate assumption!
Thank you again.

dizzyrascal

I have to disagree with what the OP says about the employee knowing or suspecting that he was overpaid.
Why would he? On his salary and with changing hours/tax allowences etc an employee can only roughly work out what should be in their pay packet.
I take the view that I expect my employer to get this right. If I get a similar sum for 2 years with little variation then I would not have any reason to think it was a wrong amount.
I would strongly resist paying this sum back if my employer did this to me.