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Overpaid Redundacny Payment

My ex-employer has overpaid my redundancy payment, do I have to pay it (the difference) back?

Comments

  • nicechap
    nicechap Posts: 2,852 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    NoBot wrote: »
    My ex-employer has overpaid my redundancy payment, do I have to pay it (the difference) back?

    If they had underpaid you, would you let them keep it?
    Originally Posted by shortcrust
    "Contact the Ministry of Fairness....If sufficient evidence of unfairness is discovered you’ll get an apology, a permanent contract with backdated benefits, a ‘Let’s Make it Fair!’ tshirt and mug, and those guilty of unfairness will be sent on a Fairness Awareness course."
  • What is the law that dictates this?
  • nicechap
    nicechap Posts: 2,852 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    NoBot wrote: »
    What is the law that dictates this?

    google "debt laws"
    Originally Posted by shortcrust
    "Contact the Ministry of Fairness....If sufficient evidence of unfairness is discovered you’ll get an apology, a permanent contract with backdated benefits, a ‘Let’s Make it Fair!’ tshirt and mug, and those guilty of unfairness will be sent on a Fairness Awareness course."
  • tehone
    tehone Posts: 640 Forumite
    Part of the Furniture 500 Posts Name Dropper
    NoBot wrote: »
    My ex-employer has overpaid my redundancy payment, do I have to pay it (the difference) back?

    It depends on the wording of the agreement you signed (assuming you signed one).

    Is the amount different to that you were expecting (and was this documented anywhere?)

    If it does need to be unravelled, then make them pay for you to have advice to ensure that it is properly done with regard to tax/NI etc and doesn't affect you later on down the line.

    Lastly is the amount significant? Oh and does the amount you've been paid include anything like holiday pay, overtime, bonus etc, expenses, etc.
  • NoBot wrote: »
    What is the law that dictates this?


    Whatever happend to morals.


    Just make sure that their calculations are correct and that you haven't overpaid any tax (if applicable), repay the overpayment and move on.
  • Morals!? Really!? I've obediently served for 10yrs for a blood sucking multi-national company who are nothing but mercenary despite declaring they 'care' . . And then to be laid off the week before xmas when I've got two tiny kids. Morals! Nonsense!

    Rant aside. It turns out I'm due an enhanced redundancy. So xmas wasn't as bad as it could have been. But I've a follow on question: Is National Insurance due for a redundancy payment over £30k? 
    I did ask the HMRC earlier, but some numpty there told me to ask ACAS!! Yes, really! I'll call them (HMRC)again tomorrow


  • xylophone
    xylophone Posts: 45,416 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 12 February 2020 at 7:37PM
     Is National Insurance due for a redundancy payment over £30k? 

    https://www.gov.uk/staff-redundant/redundancy-pay

    Tax

    Employees who’ve been made redundant only pay tax on payments over £30,000. They do not pay any National Insurance.

    Tax and National Insurance are deducted from other termination payments, for example payment in lieu of holiday or notice.

    See  below re splitting out of the payment into component parts  https://www.pensionsadvisoryservice.org.uk/content/spotlights-files/uploads/Redundancy_June_2018_Final4.pdf


    https://www.litrg.org.uk/tax-guides/employment/what-tax-do-i-pay-redundancy-payments

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