Repaying wage overpayment

flicker79

Hi

Just wondering if anyone has advice about the following problem.

I recently left my employment as I got offered another job. The first month after this I was payed by my previous employer an amount that looked equal to what I was owed for overtime, holidays etc. My manager was not sure so contacted HR to look in to it. As it was Christmas I though nothing more of it. I have just recieved another payslip equaling the equivalent of a months pay. I went straight to HR and my old manager about it. They are both blaming each other but have said either way I need to repay 2 months pay, which is fine. They are now telling me it is not the pay that I recieved into my bank that I have to repay but the pre-tax amount. Is this legal? Their error is going to cost me several hundred pounds that I do not have and I am worried how I am going to pay my bills over the next few months as a result.

Thanks in advance for any advice.

robpw2

flicker79 wrote: »

Hi

Just wondering if anyone has advice about the following problem.

I recently left my employment as I got offered another job. The first month after this I was payed by my previous employer an amount that looked equal to what I was owed for overtime, holidays etc. My manager was not sure so contacted HR to look in to it. As it was Christmas I though nothing more of it. I have just recieved another payslip equaling the equivalent of a months pay. I went straight to HR and my old manager about it. They are both blaming each other but have said either way I need to repay 2 months pay, which is fine. They are now telling me it is not the pay that I recieved into my bank that I have to repay but the pre-tax amount. Is this legal? Their error is going to cost me several hundred pounds that I do not have and I am worried how I am going to pay my bills over the next few months as a result.

Thanks in advance for any advice.

you should only have to pay money received from them .. so if they put £10 in your bank thats what you pay back .

HappyMJ

What would I do....Don't pay any amount back let them take you to court. Explain it to them and they'll sort it out properly. You only have to pay the NET amount back. The tax and NI they overpaid they can reclaim from the HMRC next month.

flicker79

Thank you both for your replies

Unfortunately, I am still under the same payroll as it is technically the same company I have just changed to a different section essentially so they are saying they are just going to stop the money out of my next pay so I dont know how I am able to stop this from happening.

edwardw

if they do that, take them to court./simple

keithrgj

edwardw wrote: »

if they do that, take them to court./simple

if you do not know the answer then dont guess

if they have overpaid you a months wages so you received two months then it is an overpayment as in a sense you will not be left in financial hardship.
that is you received two lots of salary in one go

they are entitled to take a months wages back in one hit

good practice dictates that the overpayment is taken back over a set period of time but the employer does not have to agree to this

the regulations are contained under section 13 of the employment rights act

speak to your employer, they can only say no

caz_cardiff87

i can’t really add to what has already been posted but was in the same situation (sort of) having been overpaid for a year (don’t ask, it also happened to my colleague).

Keith is right however, they are quite within their rights to take it all back in one hit, but usually employers will have a policy for this sort of thing and can negotiate a repayment plan. In my case, the length of time it took to repay them could not exceed the period of time i was overpaid so basically i had a year to repay over a grand and had 90 odd quid a month deducted from my pay.

Elixiress

You only need to pay back the net amount, as you have only received the net amount. Your employer will be paid back the difference between the net and gross amount from HMRC, because the tax and NI goes to them and not you.