overpaid by employer

BASFORDLAD

I left my employment after a week in the job and have so far been paid 3 months fall pay!, i know legally that employers can ask for this money back etc,but are they are able to actually debit your account on the next pay day with the amount that you owe them? , do banks have a legal obligation to submit to this request?

lynxptc

No they can't just debit your account, they need to request the money back.

wonkyferg

A similar thing has very recently happened to me when after 9 months working for a global bank I resigned whilst on sick leave, now a month after recieving what i throught was my holiday pay. I have recieved another full wage.

I don't know weather this will continue or not but am I right in thinking they are able to remove the monies within 28days of them over paying me?

nealallen

They use a system that only allows them to pay money into your account. The only way they can get the money back will be by asking you for it or, if you have any holiday pay/outstanding wages, take it from that.

duchy

It's probably one of the few situations when buying Premium bonds is a good investment. It's tucked away out of reach and temptation to spend-yet can be retrieved within 10 days if/when the company request it back....and in the meantime may produce a nice bonus.

jonesMUFCforever

If the payment is by BACS your bank will be able to recover the amount from your account if asked within one business day of receiving it (it is called reclaiming a payment - similar to D/D indemnity but in reverse).
So if payment went in on friday and it is still there by Wednesday morning the employer has to ask you to return the overpayment not the bank.

Don't spend it though as you legally have to repay.

Elliesmum

duchy wrote: »

It's probably one of the few situations when buying Premium bonds is a good investment. It's tucked away out of reach and temptation to spend-yet can be retrieved within 10 days if/when the company request it back....and in the meantime may produce a nice bonus.

I quite like duchy's idea. But you will have to pay it back. This happened to my hubby and they offered the chance to pay the money back in installments - which we did. Banked the money whilst paying them back a bit at a time and kept the interest.

HTH's

EM xx