Overpayment - employer

KP19X

My employer overpaid me by one month's pay when I finished work last April due to me not being taken off payroll. I was notified of it in May or June (can't remember, at first it was by phone but then I received a letter in July). At the time I thought it was unpaid holidays or first month's pay in arrears. I accept that it was a mistake and I wasn't owed this money and morally need to pay them back.

They asked for the money over three months, which i couldn't afford at the time because my new job was insecure/still in probation period. So I offered to pay back at £30/month, which they were not happy about. I made 5 payments to November and then they threatened legal action if I didn't increase to £100 but nothing came of it. I haven't made any payments since due to Christmas and other expenses at home.

I've now received a letter saying they want the £100 and they've sought legal advice to take it to court. My question is, is this covered under small claims or will it be a big civil case where I'll need legal representation, which I obviously cannot afford?

Thanks for your help.

Comms69

KP19X wrote: »

My employer overpaid me by one month's pay when I finished work last April due to me not being taken off payroll. I was notified of it in May or June (can't remember, at first it was by phone but then I received a letter in July). At the time I thought it was unpaid holidays or first month's pay in arrears. I accept that it was a mistake and I wasn't owed this money and morally need to pay them back.

They asked for the money over three months, which i couldn't afford at the time because my new job was insecure/still in probation period. - How could you not afford it. You had the money + a job. So I offered to pay back at £30/month, which they were not happy about. I made 5 payments to November and then they threatened legal action if I didn't increase to £100 but nothing came of it. I haven't made any payments since due to Christmas and other expenses at home. -

I've now received a letter saying they want the £100 and they've sought legal advice to take it to court. My question is, is this covered under small claims or will it be a big civil case where I'll need legal representation, which I obviously cannot afford? - it's small claims; you will lose.

Thanks for your help.

Why would you even consider legal representation, you have no case

Undervalued

KP19X wrote: »

My employer overpaid me by one month's pay when I finished work last April due to me not being taken off payroll. I was notified of it in May or June (can't remember, at first it was by phone but then I received a letter in July). At the time I thought it was unpaid holidays or first month's pay in arrears. I accept that it was a mistake and I wasn't owed this money and morally need to pay them back.

They asked for the money over three months, which i couldn't afford at the time because my new job was insecure/still in probation period. So I offered to pay back at £30/month, which they were not happy about. I made 5 payments to November and then they threatened legal action if I didn't increase to £100 but nothing came of it. I haven't made any payments since due to Christmas and other expenses at home.

I've now received a letter saying they want the £100 and they've sought legal advice to take it to court. My question is, is this covered under small claims or will it be a big civil case where I'll need legal representation, which I obviously cannot afford?

Thanks for your help.

It is small claims but the bottom line is you owe them the money and they are not obliged to offer you "easy payment terms".

That said if it goes to court and you cannot afford the whole amount you will be ordered to pay at a rate that the court feels is affordable (which may still be more than you feel is affordable). Plus the court fees and interest will be added to the total.

So, unless you have good reason to dispute the total owing I would try and avoid it going to court.

Exodi

KP19X wrote: »

My employer overpaid me by one month's pay when I finished work last April due to me not being taken off payroll. I was notified of it in May or June (can't remember, at first it was by phone but then I received a letter in July). At the time I thought it was unpaid holidays or first month's pay in arrears. I accept that it was a mistake and I wasn't owed this money and morally need to pay them back.

They asked for the money over three months, which i couldn't afford at the time because my new job was insecure/still in probation period. So I offered to pay back at £30/month, which they were not happy about. I made 5 payments to November and then they threatened legal action if I didn't increase to £100 but nothing came of it. I haven't made any payments since due to Christmas and other expenses at home.

I've now received a letter saying they want the £100 and they've sought legal advice to take it to court. My question is, is this covered under small claims or will it be a big civil case where I'll need legal representation, which I obviously cannot afford?

Thanks for your help.

There's been a lot of threads like this lately (I think HR/Payroll departments need to pay more attention!), but first things first, I'm glad you've accepted you need to pay the money back and have been making amends to (the amount of people that seem to think they can keep it is shocking).

You haven't said just what the overpayment was, or what your new wage is but assuming it's NLW, you'd be taking home £1100+ a month. To be completely frank, I appreciate why they're a bit annoyed you are only paying £30 a month back... this would take over 3 years, not reasonable at all.

There's also the fact that you would have been advanced £1100+? Where has this money gone?? Your new job being insecure doesn't explain £1100+ disappearing?

In this case, I'm fully with the employer, £100 is (overly) reasonable (assuming full time at NLW) and any less is a plain insult. The fact you've ceased payments because of Christmas and other expenses is such an insult, I would commenced court proceedings immediately.

Whilst depending on the amount, it almost certainly would be settled in small claims courts but you seem to be alluding that you intend to let it get this far by mentioning a legal representative - being frank, no one would represent you nor could you afford it.

If you're in such severe financial difficulty you can't pay this, you should head over the Debt Free Wannabe forum.

Good luck

TELLIT01

Try to negotiate a lower figure than the £100 per month, but higher than the original £30. I'm not surprised that they are threatening legal action as you reneged on the original agreement.

KP19X

Thanks all. I know I was in the wrong, I am trying to sort it at my end to be able to pay them back sooner. I want to avoid court if I can but was worried about additional costs they might try to pass onto me for legal fees.

TELLIT01

KP19X wrote: »

Thanks all. I know I was in the wrong, I am trying to sort it at my end to be able to pay them back sooner. I want to avoid court if I can but was worried about additional costs they might try to pass onto me for legal fees.

Avoiding court is a sensible idea. You are in the wrong and it is entirely possible that costs would be awarded against you, depending on which route the employer took.

TBagpuss

If you genuinely cannot afford to pay £100 a month then write back to them, setting out your income and outgoings and your offer.

That is what you would need to do if the case went to court and were admitting the debt but asking for time to pay.
(form here

If you set out your income and outgoings in a similar way it shows your former employers what you can realistically afford.

If they take you to court then they will be able to claim the court fee, and possibly a fixed amount for lgal fees, from you, on top of the debt.