Clawing back of Salary Overpayment

Aberdeen12

Please could somebody advise on following situation. I am employed on a commission only basis for a large company and have been earning a good salary for the past 3 years. I was advised yesterday that the company had mistakenly overpaid me and they have decided to take an amount from my monthly salary for the next 5 months. They have also advised that they not paid my full holiday pay and also I have overpaid on my Cycle to Work scheme.
The payment that they have clawed is quite substantial and means that I am going to struggle making my household financial commitments over the coming months. Are they allowed to do this and also what happens in relation to tax and NI overpayments? It is not a huge overpayment as I had not noticed any overpayments. Apparently there are another 2 employees that have the same problem and we have been asked not to discuss with any other members of staff within my company.

TadleyBaggie

The payments back to the company should be from the gross amount, therefore reducing your tax and NI payments, so in the end the tax and NI positions should be correct.

This happened to me when a 20K bonus wad paid in pounds when it should have been paid in US dollars. I was unaware of the mistake because all I had been told was that I was getting a 20K bonus. Luckily I hadn't spent it, so the reduction in monthly salary was easily offset from savings.

comeandgo

They are allowed to take back overpayments but you could ask them to do it over ten months or more as it would cause most people cash flow worries.

DKLS

It seems there are some right muppets in payroll these past few weeks.