Overpaid at work.

workingmother26

Hi everyone.
New to this site so please go easy on me!
I'm looking for a bit of advice on overpayment that I have received on my wages. I had to change my hours at work 2 years ago due to my childcare arrangements. I dropped 2 and a half hours a week and declare this both on paper and an electronic signing in system. As far as I was aware being a PAYE and not a salaried employee any hours that I declared is what I would receive payment for. However my line manager has recently come to me and informed me that when the change of hours occurred payroll was not informed so therefore they have been paying me every week for the last two years the 2 and half hours a week that I originally dropped. Now they have dropped my weekly payments to the amount that I am supposed to be receiving which is fair enough but on top of that they want to recoup the money that I have been overpaid by by taking another 2 and half hours off my wages. Effectively, this would leave me working a day a week for free and pushing my earnings to below the national minimum wage. Advice anyone? This has got me so distressed

Hudson1984

I always thought that if an overpayment had been made it was your responsibility to pay it back. but 2 years is alot to pay back!

did you not notice you were getting overpaid?

comeandgo

Unfortuately your employer can take back this overpayments - can you ask for more time to pay? Surely you knew how much per hour you were being paid and how many hours you were working so you must have had some idea your wages were not correct?

claret_mike

Technically you have been paid extra 2.5hrs per week for 2 years so it's not like you are working for free as they have already paid you.

That said, I understand that there will be financial implications to you in that your wage will effectively have dropped by 5hrs pay going from overpayment to underpayment to correct.

Can you afford to cover your outgoings with this revised wages?

Will this impact on any tax credits etc?

mcfisco

Have your wages gone up in the last 2 years?
If they have, they'll be taking more off you than they overpaid you and I don't think they can charge interest. Ask them how long they intend to take the 2.5hrs per week from your salary.

I guess there also a possibility that you overpaid NI and some tax or missed some benefit threshold. You're probably going to be out of pocket on this unless they account for the extra you paid and take the hit rather than you.

tonyalcock

I also think you need to discuss this with your employer and come up with a mutual agreement. As you have been overpaid - the employer is right to ask for "refund". However, as mcfisco noted, two years ago, probably your wages were lower, so it will not be fair to deduct the current amount you receive.

BitterAndTwisted

You had two years to notice that you were being over-paid and did nothing. That your employer is seeking to reclaim this over-payment by deducting at the rate of only two and a half hours is incredibly reasonable. This has nothing to do with now being paid at under the NMW. Just be grateful that they're not looking for the whole lot back immediately.

mcfisco

BitterAndTwisted wrote: »

You had two years to notice that you were being over-paid and did nothing. That your employer is seeking to reclaim this over-payment by deducting at the rate of only two and a half hours is incredibly reasonable. This has nothing to do with now being paid at under the NMW. Just be grateful that they're not looking for the whole lot back immediately.

The company has also had two years to spot the mistake and done nothing about it. In fact, given they they probably scrutinise their accounts far more that most individuals would do, you could say they are the most incompetent ones here.
As to the minimum wage question, I don't believe they can make deductions that would take her below that threshold, even if she had previously agreed to such deductions via a signed letter or contract.

lee111s

It wouldn't take you below the minimum wage threshold as you're paid a certain amount per hour. You can't just divide the amount you get paid by the hours you've worked and take that as you're hourly rate when you know you're having to pay back those 2.5 hours. I would come to an agreement with your management and maybe suggest you pay back half or 1 hour per week for however long given that they hadn't made the change after you notified them and thet had written confirmation that you agreed to the change in wages/hours.

Cycrow

mcfisco wrote: »

The company has also had two years to spot the mistake and done nothing about it. In fact, given they they probably scrutinise their accounts far more that most individuals would do, you could say they are the most incompetent ones here.
As to the minimum wage question, I don't believe they can make deductions that would take her below that threshold, even if she had previously agreed to such deductions via a signed letter or contract.

the minimum wage is the rate for an hour, which wouldn't have changed, all that has changed is the number of hours being worked.

mcfisco

Cycrow wrote: »

the minimum wage is the rate for an hour, which wouldn't have changed, all that has changed is the number of hours being worked.

The hours worked have stayed the same [for the last 2 years]
I don't know if the way it's calculated means that deducting 2.5 hrs worth of pay now per week means she is taken below minimum wage.
The rules, as I understand them means - for example - that an employer can't deduct any amount at the end of the pay period that brings that period below the NMW for the hours worked.
Shops can't deduct for tills shortages if this is the case too [which it often is in shops]