Overpayment and Deductions

cheap-information

Hi everyone,

Just had a quick question.

I started a new job in the NHS 13 months ago. However, recently they have taken a large amount of 3 pay checks to pay for 'overpayment' for the previous 6 months.

I worked for 6 months and was paid the same amount each month (basically it was 'banded' at a certain amount). In month 7, I changed jobs and without telling me, they started deducting around £600.

I contacted the employer who then told me it was a mistake and it would be refunded on the next payslip. I waited till the next month and this didn't happen, they actually took a further £600 off. It again happened for the third month.

After this, they then told me they had 'overpaid' me in the previous 6 months and so had to deduct it.

The sad fact is, that we never signed job contracts and so there was no way for me to know that I was being overpaid.

It was my understanding that we entered an implied contract in which I worked for them for 6 months and they paid me.

They are now refusing to refund any of this.

Do I have any case against this or are they in the right?

Any help would be much appreciated!

Undervalued

cheap-information wrote: »

Hi everyone,

Just had a quick question.

I started a new job in the NHS 13 months ago. However, recently they have taken a large amount of 3 pay checks to pay for 'overpayment' for the previous 6 months.

I worked for 6 months and was paid the same amount each month (basically it was 'banded' at a certain amount). In month 7, I changed jobs and without telling me, they started deducting around £600.

I contacted the employer who then told me it was a mistake and it would be refunded on the next payslip. I waited till the next month and this didn't happen, they actually took a further £600 off. It again happened for the third month.

After this, they then told me they had 'overpaid' me in the previous 6 months and so had to deduct it.

The sad fact is, that we never signed job contracts and so there was no way for me to know that I was being overpaid.

It was my understanding that we entered an implied contract in which I worked for them for 6 months and they paid me.

They are now refusing to refund any of this.

Do I have any case against this or are they in the right?

Any help would be much appreciated!

You must know what rate of pay was agreed surely! Was the job advertised at a particular rate of pay? Is there a published pay scale for that grade of job?

Yes, a contract exists regardless of whether it was written or signed. In theory they are legally required to have given you a statement of main particulars of employment within two months of starting but there is no easy remedy if that didn't happen.

Ask them for a full breakdown of what you have been paid and to provide details in writing of these deductions. See what comes back and take it from there.

Alice_Walker

It is very difficult to *not* know your salary in the NHS.

The job would have been advertised/ offered as being within a certain band, are you saying this was wrong or that you failed to take notice of the band (and corresponding salary)?

cheap-information

It is very easy not to know your salary.

There is a 'basic' salary and then depending on how many hours over 40 you do per week or how many anti-social hours you do, you get banded at anything from 20-50%.

In this case, I got banded at 50% of salary when they say it should have been 40%.

The distinction between 40% and 50% in hours is an absolute mystery to the entire workforce and we only ever find out when we look at our payslip in the first month of the job. If we have a contract (which we sometimes do), then the banding can be displayed there.

In this case, we had no contract and so could not see banding but it is completely plausible for the job to be banded at 50% (my other colleague in the same job was also banded at 50% and is in the same situation)

Undervalued

As I said, start by asking them for a full written breakdown of their calculations. It is all far too vague at the moment.

cheap-information

I am a doctor and so our contracts and pay is very different to the rest of the workforce. It is almost normal for us not to know how much we are getting paid until we get our first pay slip.

Our "basic" pay is very simple to find out and is known to us, but the 'banding' is the part of the pay which changes with every job and we only get to know that normally when we read our payslips.

cheap-information

I don't really need their calculations as they have told me what has happened and it does work out.

They have paid 50% instead of 40%, meaning over 6 months, they have taken approximately £1,500 from the other 3 payslips. Basic pay is £30,000 a year (£30,000 * 0.1 = £3,000 /2 (due to 6 months instead of 12 = £1,500)

cheap-information

Can anyone help?

Basically what I am asking is, if a company has been paying you for 6 months on the same amount of money, can they turn round without contacting you and start deducting pay from month 7 when there is no job contract with agreed pay on?

sangie595

Was your last job your first one with them? Or did you work for them previously?

sangie595

And if you are a doctor, surely you are in the union? Have you asked them about this?

BobQ

cheap-information wrote: »

Can anyone help?

Basically what I am asking is, if a company has been paying you for 6 months on the same amount of money, can they turn round without contacting you and start deducting pay from month 7 when there is no job contract with agreed pay on?

There are two basic issues. First it is illegal to make deductions from salary unless they can explain the reason for it.

http://www.acas.org.uk/index.aspx?articleid=4125

In this case, they are claiming it is an overpayment and provided they can show it was an overpayment they can make the deduction. You are legally entitled to a statement of your terms and conditions within two month of starting

https://www.gov.uk/employment-contracts-and-conditions/written-statement-of-employment-particulars.

Legally they can recover the full overpayment from you as soon as it is discovered but NHS rules may stipulate that such recoveries need to be done over an agreed period. Best check your intranet site for methods of recovering an overpayment.

Better still ask your Union.

ETA This may help

http://www.shoosmiths.co.uk/client-resources/legal-updates/Overpayment-of-wages-when-and-how-can-employers-recover-3973.aspx