Employer is taking me to court for wages overpaid

pinkshoes

Blackglove said:

Can I please ask your advice?

My sister worked for an employer until 2019 on a part time basis but was regularly rostered for extra hours. Her employer then told her she had been overpaid for around 2 years (not sure of exact dates but can clarify if needed.)

The employer (carer industry) told her she needed to repay the overpayment which they claimed was around £13k. My sister offered £50 per month taken from her wages which they refused as it would take too long to reclaim the overpayment. My sister has 2 children with the eldest having complex special needs, her husband works part time as they both look after the children between them.

Eventually, her employer agreed to take the £50 per month until she left the business. She tried to discuss with them about repaying after she had left but they were less than helpful. Nothing was heard from them until 3 weeks ago when she received a telephone call from them stating they were going to pursue the overpayment through court.

During her employment with the caring company, her and her husband were in receipt of disability benefits for their daughter as well as being eligible for tax credits/child tax credits. The working tax/child tax credits were stopped as she was earning above the threshold for help. (We now realise this was because of her overpayment). 

My question is not to avoid paying, but what rights she has, if any. Their tax credits were stopped due to the employer overpaying her, she also paid tax on those earnings yet the employer is seeking the full amount. Is there any responsibility on the employer here?

I have read her the riot act regarding this. I have said that she must have known her wages were too high for what she should have been paid, however, both her and her husband said it was difficult keeping track of her hours as the company seldom got the payslip right, not paying enough overtime hours one month, then adjusting the following month. 

Today she has received a county court judgement pack through the post and has got herself into a right mess about it. She really does not know where to start. They have a mortgage which is now on SVR as their fixed rate has expired. They are living hand to mouth and now relying on foodbanks/family to get through. 

Thank you to everyone in advance, all and any help/advice is gratefully appreciated.

I am currently trying to help with the income/expenditure form as this needs to be sent back to the court within the next 10 days but want to make sure there is nothing else we should be doing first. Citizens Advice have been no help at all.

As the over-payment meant she didn't get the tax credits, can she back-claim the tax credits? 

Would the tax credits have been equal to the overpayment?

If she CAN claim the correct tax credits then use them to pay back the over-payment.

If she CANNOT claim back the correct tax credits, then counter-claim against the company for the loss of tax credits that she cannot back-claim due to their over-payment. Make it clear that this counter claim will be equal to the value of the over-paid wages so the debt will be cleared.

A SAR request asking for copies of all hours worked and payslips would be helpful. She needs to first work out exactly how much she has been over-paid based on hours she has worked. I'm assuming she can work this out?!?!

sammyjammy

On the mortgage front why is she on the SVR?  Tell her to ask her lender about retention products she can move to, now is not the time to be on a variable rate!

Own_Worst_Enermy

For what it is worth, whilst a few years old, this did start as a thread on here - 
Barclays bank worker given double pay in error will keep getting it | Daily Mail Online

Undervalued

Own_Worst_Enermy said:

For what it is worth, whilst a few years old, this did start as a thread on here - 
Barclays bank worker given double pay in error will keep getting it | Daily Mail Online

That case, from 13 years ago, is well know and totally exceptional.

Unfortunately, largely uninformed people latch on to it and think it will apply to them. 999 times out of a thousand it won't. Actually the odds are probably far worse than that!

The general advice that, if the employer makes a mistake with your pay, they are entitled to recover the money applies in virtually all situations.

As does the advice that it is as much the employee's duty to make sure their pay is correct as it is the employer's.

From memory, the case you link hinged on the fact that the employee, who was well versed in financial matters, had been to considerable lengths to point out the employer's errors. Despite that, the employer had repeatedly (but wrongly) insisted otherwise.

Own_Worst_Enermy

Oh well I tried.

From a tread which started on here UV. and it's her view point which counts.