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Redundancy overpayment repayment request

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Hello!

I originally posted this on the CAB forum but haven't received a reply so maybe that was the wrong place...

I took voluntary redundancy from the civil service on 30 September 2011. On 1 October 2012, I received a letter from Capita Hartshead stating the following:

"Following receipt of a revised award from your rewarding dept...have to advise you that an overpayment has occurred with regards to the amount of lump sum compensation you have received.

"As we are the Paying Authority, we are not party to the calculations that the awarding department have undertaken...I suggest that you contact your awarding department direct to ascertain the reasons."

The letter then goes on to request the repayment by cheque.

I have contacted the 'Awarding Department'. This states that the lump sum I was originally quoted, which formed the basis upon which I agreed to accept voluntary redundancy, was incorrectly calculated as a result of mistakes on their part.

Consequently, I do not believe I am legally obliged to repay the monies requested - the voluntary redundancy agreement I signed was legally binding after all - and intend to write a letter to that effect but would be grateful for any advice before I do so.

Many thanks

DelBats

Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    What was the mistae, was it an obvious one?

    wrong service, salary or some other factor you should have spotted

    I asume there is a documented policy on VR did it follow that or obviously not.

    Agree that based on his offer thats why you took the VR so you could take the view that you want to unwind and have your job back.
  • antrobus
    antrobus Posts: 17,386 Forumite
    ...
    I have contacted the 'Awarding Department'. This states that the lump sum I was originally quoted, which formed the basis upon which I agreed to accept voluntary redundancy, was incorrectly calculated as a result of mistakes on their part. ...

    I would say that if you are offered the option of taking voluntary redundancy on payment of paying £x, and you accept said offer, then that's a contract. Once you've duly walked out the door and £x has been paid, then that's the contract concluded.

    I'd be inclined to inform them the 'Awarding Department' that they should seek to recover the 'overpayment' from the individuals responsible for the alleged 'mistake'.

    P.S. I'd draw an analogy with the case of Barclays Bank v Natasha Keenan. That involved the overpayment of salary rather than a redundancy lump sum, but I'd argue it's the same principle. Tribunal told employer to foxtrot oscar.

    http://www.boyesturner.com/news-article.html?id=774
  • SarEl
    SarEl Posts: 5,683 Forumite
    antrobus wrote: »
    I would say that if you are offered the option of taking voluntary redundancy on payment of paying £x, and you accept said offer, then that's a contract. Once you've duly walked out the door and £x has been paid, then that's the contract concluded.

    I'd be inclined to inform them the 'Awarding Department' that they should seek to recover the 'overpayment' from the individuals responsible for the alleged 'mistake'.

    P.S. I'd draw an analogy with the case of Barclays Bank v Natasha Keenan. That involved the overpayment of salary rather than a redundancy lump sum, but I'd argue it's the same principle. Tribunal told employer to foxtrot oscar.

    http://www.boyesturner.com/news-article.html?id=774

    That's an unusual case though and generally debts are debts even if they arise from an error. Getmore4less has a point that the crux of whether Keenan applies is what exactly the information provided said - if the figures were, throughout, simply quoted as figures, there is an argument. If they were quoted as calculations and there were factual erros which the OP could, or should, have spotted - like based on 12 years when only worked 9, for example) - then Keenan would not be a relevant authority.
  • Many thanks for the responses.
    The letter states that "the inaccurate figure was due to the use an incorrect salary amount in our Early Exit calculator." It doesn't state who entered the incorrect amount...
    I'd completed 12 years 152 days of reckonable service, so those extra days made it difficult for me to ascertain whether the sum was correct.
    To be honest, I trusted that it was right and the overpayment was comparatively small so, arguably, I was unlikely to spot it.
    Delbats
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Was the algorithm documented.

    how big a difference are we looking at, salary error and resulting payment.
  • SarEl
    SarEl Posts: 5,683 Forumite
    Many thanks for the responses.
    The letter states that "the inaccurate figure was due to the use an incorrect salary amount in our Early Exit calculator." It doesn't state who entered the incorrect amount...
    I'd completed 12 years 152 days of reckonable service, so those extra days made it difficult for me to ascertain whether the sum was correct.
    To be honest, I trusted that it was right and the overpayment was comparatively small so, arguably, I was unlikely to spot it.
    Delbats

    Sorry to labour the point, but it is important. Why was it difficult to ascertain - you knew what your salary was, surely?

    How small is the overpayment? Enough to make them want to make a court case out of it or not?
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