Overpayment by Employer after leaving.

Sinead_Mc

I need some advice.
I left my old employer on the 30th March 2019, after handing in my notice two weeks before, from my contract I only needed to give 1 weeks notice.
They paid me at the end of March which was correct, however they also paid me in April for the hours I should work the following month (incorrect) and the overtime from March (correct). As I knew this was wrong I phone the payroll line to ask which after speaking to someone they said that it wasn’t an overpayment and everything looked fine on their system. So I used the money as anyone would thinking it was then in fact theirs.
A month and a half after this phone call I have now received a letter explaining they have overpaid me and I’m due to pay the whole lump (nearly £1000) by the end of this month! I can’t afford to pay that back in one hit.
I emailed the payroll as the letter suggested to either dispute it, complain about any grievance etc. I explained to them I had handed in my resignation in enough time and phoned to check the payment.
Their response was that I still need to pay the overpayment but it was in-fact a case of the region not informing them until I phoned a month after I left!

I’d like to know whether I am liable to still pay this and if so the full amount? As they have stated it wasn’t my fault but theirs.
If I am liable to pay the amount back, do I have a right to state how as I can’t afford to pay it all back in one hit.

Thanks

stripeyfox

Sinead_Mc wrote: »

I need some advice.
I left my old employer on the 30th March 2019, after handing in my notice two weeks before, from my contract I only needed to give 1 weeks notice.
They paid me at the end of March which was correct, however they also paid me in April for the hours I should work the following month (incorrect) and the overtime from March (correct). As I knew this was wrong I phone the payroll line to ask which after speaking to someone they said that it wasn’t an overpayment and everything looked fine on their system. So I used the money as anyone would thinking it was then in fact theirs.
A month and a half after this phone call I have now received a letter explaining they have overpaid me and I’m due to pay the whole lump (nearly £1000) by the end of this month! I can’t afford to pay that back in one hit.
I emailed the payroll as the letter suggested to either dispute it, complain about any grievance etc. I explained to them I had handed in my resignation in enough time and phoned to check the payment.
Their response was that I still need to pay the overpayment but it was in-fact a case of the region not informing them until I phoned a month after I left!

I’d like to know whether I am liable to still pay this and if so the full amount? As they have stated it wasn’t my fault but theirs.
If I am liable to pay the amount back, do I have a right to state how as I can’t afford to pay it all back in one hit.

Thanks

Key statement in bold I think.

You knew it was wrong, tried to bring their attention to it but they didn't immediately realise the mistake. Now they have, they want you to pay it back?

I imagine you will have to pay it back - maybe they will agree to a payment plan though.

steampowered

There is such a thing as "estoppel", which can prevent an employer from reclaiming overpayments if the employer had confirmed that the amount paid was correct AND it would be unfair for the employer to reclaim the overpayment.

You could try to claim "estoppel". But I don't think you'd be successful if it ever reached court. As you were aware that you had been overpaid, it is fair for the employer to seek repayment.

Sinead_Mc wrote: »

So I used the money as anyone would thinking it was then in fact theirs.

I don't agree. Spending all of the money that hits your account straight away is a bit irresponsible. Everyone needs to have a pot of cash set aside for emergencies.

Most sensible people would put the money to one side - perhaps in a savings account. Pay it back if the employer ever asks for it, and keep the interest in the meantime.

But you are where you are. All you can really do is honestly explain the situation to the employer and offer a repayment plan.