We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Query re repayment of wages after I have been made redundant

Hi All

I am just looking for advice at the moment and but I am finding it hard to obtain any information on a resolution to my problem from ACAS, CWU and CAB.

My ex employer made me redundant on 08/12/2015 and I have a redundancy contract from this.

They subsequently made more payments until Sept 2016 of this year and requested that I Pay immediately or pay it in instalments of £858 PM which I cannot afford at all. They have admitted it was their error and they have only recently sent me my p45 with the wrong amounts on there also.

This has in turn affect my tax credits etc.

My old contract clause does not mention anything after employment re deductions etc. I have a p60, p45 my contract the redundancy contract and their communication to me re repayment.

Where do I stand?
«1

Comments

  • marliepanda
    marliepanda Posts: 7,186 Forumite
    When did they first send you an incorrect payment? What did they say when you informed them?

    Have they simply continued to pay your salary for 9 more months?

    Why did you spend money you weren't owed?

    Anyway, you'll have to pay it back, or they'll take you to court. You can't just keep it, obviously.
  • Have you tried speaking to them?
  • Blah2017 wrote: »
    Hi All

    I am just looking for advice at the moment and but I am finding it hard to obtain any information on a resolution to my problem from ACAS, CWU and CAB.

    My ex employer made me redundant on 08/12/2015 and I have a redundancy contract from this.

    They subsequently made more payments until Sept 2016 of this year and requested that I Pay immediately or pay it in instalments of £858 PM which I cannot afford at all. They have admitted it was their error and they have only recently sent me my p45 with the wrong amounts on there also.

    This has in turn affect my tax credits etc.

    My old contract clause does not mention anything after employment re deductions etc. I have a p60, p45 my contract the redundancy contract and their communication to me re repayment.

    Where do I stand?

    Surely you noticed that you were still being paid by your previous employer. Did you contact them to let them know? Or did you spend the money?

    As for tax credits, I believe that it is up to you to provide correct information. For that reason alone, you should have been aware of the income that you had.

    My understanding is that you have to pay the money back, and it is reasonable to be expected to pay it back in the same period of time that it has been overpaid. So in your case, the former employer would reasonably expect it to be paid back over a period of nine months. If you can't afford it because you have spent it, then you might be able to negotiate a longer repayment period.

    If they had underpaid you, you would want the money as soon as possible. I expect that your former employer feels the same.
  • TyreLever
    TyreLever Posts: 212 Forumite
    100 Posts Third Anniversary
    Surely you noticed that you were still being paid by your previous employer. Did you contact them to let them know? Or did you spend the money?

    As for tax credits, I believe that it is up to you to provide correct information. For that reason alone, you should have been aware of the income that you had.

    My understanding is that you have to pay the money back, and it is reasonable to be expected to pay it back in the same period of time that it has been overpaid. So in your case, the former employer would reasonably expect it to be paid back over a period of nine months. If you can't afford it because you have spent it, then you might be able to negotiate a longer repayment period.

    If they had underpaid you, you would want the money as soon as possible. I expect that your former employer feels the same.

    But this is still an error by the employer. I am a believer that at no point should anyone be held accountable for someone elses errors. If I am underpaid then I would expect a top up in my next pay. If I am overpaid then I dont expect to have to pay it back.

    What I am saying is if your an employer and you make an error, you pay for it. It seems it doesnt work like that, but it should. Obviously if you were paid too much by giving your employer incorrect information then this isnt the employers error, and in such cases I would be expected to cough up.
    Sometimes my advice may not be great, but I'm not perfect and I do try my best. Please take this into account.
  • marliepanda
    marliepanda Posts: 7,186 Forumite
    Luckily the law is not set up to allow people to profit from genuine mistakes.

    Just because you are employed by a company does not mean you get to keep overpayments. What a ridiculous notion.
  • [Deleted User]
    [Deleted User] Posts: 35,383 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    TyreLever wrote: »
    I am a believer that at no point should anyone be held accountable for someone elses errors.

    Good system. One of my team put through some expenses and accidentally put £100 as the total instead of the £1000 they should have claimed.

    Sure sucks to be them this Christmas.
  • lincroft1710
    lincroft1710 Posts: 19,425 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    TyreLever wrote: »
    But this is still an error by the employer. I am a believer that at no point should anyone be held accountable for someone elses errors. If I am underpaid then I would expect a top up in my next pay. If I am overpaid then I dont expect to have to pay it back.

    What I am saying is if your an employer and you make an error, you pay for it. It seems it doesnt work like that, but it should. Obviously if you were paid too much by giving your employer incorrect information then this isnt the employers error, and in such cases I would be expected to cough up.

    Why should an employer lose out because of an error?? Mistakes happen. By your logic (?) you believe it is perfectly acceptable for an employer to lose hundreds or even thousands of pounds and an employee to benefit from this.
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • TyreLever wrote: »
    But this is still an error by the employer. I am a believer that at no point should anyone be held accountable for someone elses errors. If I am underpaid then I would expect a top up in my next pay. If I am overpaid then I dont expect to have to pay it back.

    What I am saying is if your an employer and you make an error, you pay for it. It seems it doesnt work like that, but it should. Obviously if you were paid too much by giving your employer incorrect information then this isnt the employers error, and in such cases I would be expected to cough up.
    Ah ha ha ha ha ha ha ha ha good one!
    Don't trust a forum for advice. Get proper paid advice. Any advice given should always be checked
  • [Deleted User]
    [Deleted User] Posts: 21,434 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    "Errare humanum est, perseverare diabolicum"

    Literally translated this ancient proverb means, “to err is human, to persevere [in erring] however [is] of the devil.”
  • Gavin83
    Gavin83 Posts: 8,757 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Blah2017 wrote: »
    Hi All

    I am just looking for advice at the moment and but I am finding it hard to obtain any information on a resolution to my problem from ACAS, CWU and CAB.

    My ex employer made me redundant on 08/12/2015 and I have a redundancy contract from this.

    They subsequently made more payments until Sept 2016 of this year and requested that I Pay immediately or pay it in instalments of £858 PM which I cannot afford at all. They have admitted it was their error and they have only recently sent me my p45 with the wrong amounts on there also.

    This has in turn affect my tax credits etc.

    My old contract clause does not mention anything after employment re deductions etc. I have a p60, p45 my contract the redundancy contract and their communication to me re repayment.

    Where do I stand?

    Just to be clear here is it your salary they've continued to overpay you? Did you not notice your salary, a fairly substantial amount of money being paid into your account for a further 9 months?

    Anyway you'll have to pay back the money. You can probably negotiate a lesser amount each month within reason but it does ultimately have to be paid back.

    I feel this will be one of those posts where the OP doesn't return but I'm happy to be proved wrong.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.3K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.4K Spending & Discounts
  • 247.2K Work, Benefits & Business
  • 603.9K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.