Overpayment from former employer

Pendoor

Hi there, spending some time on research, I could only dig up information on overpayments from current employer.

I have resigned from a position at my former employer's company in the first week of May, after which I've been handed a letter stating that all outstanding payments/holidays etc. owed will be paid in due time. No amounts/dates stated.

At the end of that month, I have received a sum that seemed like my regular wages, however as I was on a holiday abroad, I assumed that was the money owed to me.

I have received yet another payment at the end of this month, although I was not aware that the money was in fact from my previous employer, as I always receive payments from my current company on that day.

I have received a call from my former employer's company late on a Friday requesting that I pay back 2 month's worth of wages on that day or callback on Monday to discuss the repayment.

Due to the circumstances in which I have received that money, I was unaware of its source. I do not have the first payment as I was away on a holiday and spent it. I have also used part of the second payment before it was brought to my attention late on a friday.

Apologies for the long intro, however the situation had to be explained to illustrate the situation well enough.

So finally the questions:
1. Am I obliged to pay the money back?
2. If yes, the first, second or both payments?
3. If yes, are there any regulations in regards to the timeframes/instalments and other options?


Thanks in advance!

agrinnall

I think you need to speak to them to find out why they are asking for both payments to be returned when it seems like the first one may be wages that you were due anyway (or at least partly that). I'd want them to provide a full breakdown of what they actually owed you at the time your notice ended, what they have paid since then, and how much of it they want back. If you can't afford to repay the full amount immediately tell them that you will repay over a period - how long depends on how much it is, but I'd have though a few months might be reasonable.

Takeaway_Addict

Ask them for a breakdown of what you owe and if you agree with it sort out a 'reasonable' timeframe to pay it back. If you can afford to I would suggest 6-12 months. If you are unemployed or really stretched, offer a statement of affairs and offer a payment that is suitable.

Though, really do you want this debt hanging around for years?

Oh, and if you do owe the money you DO have to pay it back as it was a mistake on the employers behalf.

Undervalued

Pendoor wrote: »

So finally the questions:
1. Am I obliged to pay the money back?
2. If yes, the first, second or both payments?
3. If yes, are there any regulations in regards to the timeframes/instalments and other options?

1. Almost always yes. There are some very rare circumstances where people have used an obscure legal concept to avoid repayment. It is unlikely to apply.
2. Both
3. No. Technically you have no right to a longer timeframe although most employers will agree to one within reason. If it went to court and you were ordered to pay it would be at a rate the court assessed as reasonable.

bevanuk

This is the same story every time. Never assume, always check.
You'll have to pay it back one way or another.

somethingcorporate

What would you have spent had you received only your normal wages? use whatever source that would have been to repay the second payment and sort out what you do owe.

TBagpuss

Yes, you will have to pay back the overpayments. Even on your own account you knew the 2nd payment was an error.
You should pay the second payment back in full, immediately, and explain to the employer that you have not received a final statement showing the payments due to you for untaken leave etc, and ask them to provide that, so that you can see how much of the first payment was correct, and how much was an overpayment.