Wage Overpayment

dpooley85

Hi guys,

I have a small query as I have received a solicitors letter from my former employer.

I was dismissed from a short contract on the 6th January this year and received my last pay on the 21st of that month.

However, as my employer took three weeks to tell hr I had left I was subsequently overpaid although I thought it was correct at the time. I told them on 4 different occasions before I was paid that I had left and was told a manager had to advise them of the change.

They have now advised me via solicitors letter that a small sum of £1002 needs to be repaid within 7 days. I have googled it and there are many different opinions whether I should repay or not as all the money was spent on mortgage, bills etc.

Does anybody know the law on this or should I repay? Any advice gratefully received.

pinkshoes

dpooley85 wrote: »

Hi guys,

I have a small query as I have received a solicitors letter from my former employer.

I was dismissed from a short contract on the 6th January this year and received my last pay on the 21st of that month.

However, as my employer took three weeks to tell hr I had left I was subsequently overpaid although I thought it was correct at the time. I told them on 4 different occasions before I was paid that I had left and was told a manager had to advise them of the change.

They have now advised me via solicitors letter that a small sum of £1002 needs to be repaid within 7 days. I have googled it and there are many different opinions whether I should repay or not as all the money was spent on mortgage, bills etc.

Does anybody know the law on this or should I repay? Any advice gratefully received.

Legally, you have to pay it back if you were overpaid.

However, if you have not got the money any more, offer them a payment plan.

McKneff

If you kept getting paid how could you not realise it was wrong ?

As above theres no question that you have to repay it, but they will have to accept a pay ment plan.

dpooley85

My last pay date was 21st January, I was advised it was correct on payday even though they still hadn't been advised I had left.

This I why I question whether I had to pay it back as it was there laziness in changing their payroll system.

dpooley85

pinkshoes wrote: »

Legally, you have to pay it back if you were overpaid.

However, if you have not got the money any more, offer them a payment plan.

Definitely don't have the money anymore...especially 4 months after the event!!!

daytona0

dpooley85 wrote: »

My last pay date was 21st January, I was advised it was correct on payday even though they still hadn't been advised I had left.

This I why I question whether I had to pay it back as it was there laziness in changing their payroll system.

If you use the "it was there laziness in changing their payroll system" argument then presumably you would have been OK had an underpayment been made instead due to this reason?

Nope?

Didn't think so.

Undervalued

dpooley85 wrote: »

My last pay date was 21st January, I was advised it was correct on payday even though they still hadn't been advised I had left.

This I why I question whether I had to pay it back as it was there laziness in changing their payroll system.

No.

The only circumstances where there is legally a (rare) possibility of being entitled to retain the overpayment is if you could show that you had good reason to believe you were entitled to the money.

A popular example is somebody being paid too much as a result of a promotion, repeatedly questioning it and being assured (wrongly) that it was correct.

You knew that you were not entitled to this money.

IAmWales

dpooley85 wrote: »

My last pay date was 21st January, I was advised it was correct on payday even though they still hadn't been advised I had left.

This I why I question whether I had to pay it back as it was there laziness in changing their payroll system.

That laziness seems to go both ways.

Unless you're a high earner £1000 is a significant amount. Why did you assume it was yours, did you have a reasonable belief that they owed you money?

parking_question_chap

Needs to be paid back.

Suggest payment plan.

London50

Would you have excepted being paid £1002 less in you final wage if you had worked for it? somehow I do not think so. It works both ways, you owe it so {in what ever way is agreed between you and the company}it needs to be returned.

xapprenticex

You have to pay it back, 7 days is just to test the waters, im surprised they got solicitors instead of contacting you directly, burnt bridges i assume. Arrange a pay plan, no point getting a CCJ and having them arrange the pay plan for you.

If you actively try to arrange a pay plan then they wont really have a leg to stand on in court because you are actively trying to resolve the issue.