Employer payroll error

sluisdejesus

Hi folks,

Last year I reduced my hours at work down to 4.5 day weeks. My salary was reduced accordingly and everything was adjusted.

In January everyone received a payrise and although slightly higher than I was expecting it was all ok. The salary increase letter was worded as "your new salary is £xxxxx a year"

Fast forward to this month and I've gone back to 5 day weeks and was expecting my salary to rise accordingly but I've just received a call from HR manager saying that my salary hadn't been amended properly on their spreadsheet and when the payrise went around it was applied to my full time salary rather than reduced hours - in essence I've been overpaid for the last 6 months.

The HR manager has very kindly told me that they won't claw back the last 6 months of overpayment (why thank you!) but that my salary won't be increased in line with my hours.

Do I have a leg to stand on here or do I need to accept it - also please consider from a peace point of view as I do quite enjoy my job and don't want to move anywhere right now!

Many thanks in advance

MattMattMattUK

sluisdejesus said:

Hi folks,

Last year I reduced my hours at work down to 4.5 day weeks. My salary was reduced accordingly and everything was adjusted.

In January everyone received a payrise and although slightly higher than I was expecting it was all ok. The salary increase letter was worded as "your new salary is £xxxxx a year"

Fast forward to this month and I've gone back to 5 day weeks and was expecting my salary to rise accordingly but I've just received a call from HR manager saying that my salary hadn't been amended properly on their spreadsheet and when the payrise went around it was applied to my full time salary rather than reduced hours - in essence I've been overpaid for the last 6 months.

The HR manager has very kindly told me that they won't claw back the last 6 months of overpayment (why thank you!) but that my salary won't be increased in line with my hours.

Do I have a leg to stand on here or do I need to accept it - also please consider from a peace point of view as I do quite enjoy my job and don't want to move anywhere right now!

Many thanks in advance

I am not really sure what leg you are looking to stand on? But it seems you have been overpaid for six months and they do not want the overpayment back, I would accept that win and move on!

sluisdejesus

MattMattMattUK said:

I am not really sure what leg you are looking to stand on? But it seems you have been overpaid for six months and they do not want the overpayment back, I would accept that win and move on!

What I mean is - my salary was increased to x amount. Now I'm told that x amount was wrong and it's in essence being reduced (I'm working an extra half day for the same pay). I'm not trying to be ungrateful but surely when a payrise letter is sent out with an amount then they should honour that? Otherwise they could in theory do the same next year - we only meant to give you x% rise but input the wrong digit by accident?

Does that make sense?

LinLui

sluisdejesus said:

MattMattMattUK said:

I am not really sure what leg you are looking to stand on? But it seems you have been overpaid for six months and they do not want the overpayment back, I would accept that win and move on!

What I mean is - my salary was increased to x amount. Now I'm told that x amount was wrong and it's in essence being reduced (I'm working an extra half day for the same pay). I'm not trying to be ungrateful but surely when a payrise letter is sent out with an amount then they should honour that? Otherwise they could in theory do the same next year - we only meant to give you x% rise but input the wrong digit by accident?

Does that make sense?

Yes it makes sense. No you haven't a leg to stand on and I wouldn't push this one because you are WAAAAYYYY ahead! Employers make errors, as you have just found out. The law permits them to correct those errors, and I can tell you now that most employers would never fail to claw back an overpayment. They can, they do. And if you try it on then the might! Just because they said they wouldn't based on you agreeing to stay at that point means nothing - they can change their minds, and you will end up owing them money. 

LightFlare

A different way to look at the mistake is to think how you would deal with it if the had underpaid you for 6months.

sounds like the pay was correct - just they hadn’t applied the pro rata from 5 to 4.5days

mistakes happen and I think they have offered a good resolution (unless you are in a position to pay it back as a lump sum)

sluisdejesus

LinLui said:

Yes it makes sense. No you haven't a leg to stand on and I wouldn't push this one because you are WAAAAYYYY ahead! Employers make errors, as you have just found out. The law permits them to correct those errors, and I can tell you now that most employers would never fail to claw back an overpayment. They can, they do. And if you try it on then the might! Just because they said they wouldn't based on you agreeing to stay at that point means nothing - they can change their minds, and you will end up owing them money. 

Thank you, that makes sense. I wasn't sure if there was any obligation on the employer side to stick to their agreement (the new salary) but it seems I really against the wall on this 😕

LightFlare said:

A different way to look at the mistake is to think how you would deal with it if the had underpaid you for 6months.

sounds like the pay was correct - just they hadn’t applied the pro rata from 5 to 4.5days

mistakes happen and I think they have offered a good resolution (unless you are in a position to pay it back as a lump sum)

I do understand what you're saying - the problem is that if they'd been underpaying me it would be based on the salary agreed, not a figure that I'd decided I wanted to be paid. This overpayment is due to them calculating my payrise wrong despite the communication they'd sent out. Regardless, it doesn't sound like there's much to be done unfortunately.

MeteredOut

OP, have you also been getting additional payments into a work pension due to their mistake?

sluisdejesus

MeteredOut said:

OP, have you also been getting additional payments into a work pension due to their mistake?

Yes I had been receiving my pension contributions based on the salary on the payrise letter sent out in January so this is one very big mess

LinLui

I think you are perhaps missing the point with " it doesn't sound like there's much to be done,  unfortunately " and "this is one very big mess". You are very fortunate. Few employers would write off this mistake even though it is theirs. And the law would be in their side. You have had an unexpected extra amount of money that you've been allowed to keep,  and a little bit extra towards your pension. You are the winner here. You are not remotely " unfortunate".

Andy_L

sluisdejesus said:

Hi folks,

Last year I reduced my hours at work down to 4.5 day weeks. My salary was reduced accordingly and everything was adjusted.

In January everyone received a payrise and although slightly higher than I was expecting it was all ok. The salary increase letter was worded as "your new salary is £xxxxx a year"

Fast forward to this month and I've gone back to 5 day weeks and was expecting my salary to rise accordingly but I've just received a call from HR manager saying that my salary hadn't been amended properly on their spreadsheet and when the payrise went around it was applied to my full time salary rather than reduced hours - in essence I've been overpaid for the last 6 months.

The HR manager has very kindly told me that they won't claw back the last 6 months of overpayment (why thank you!) but that my salary won't be increased in line with my hours.

Do I have a leg to stand on here or do I need to accept it - also please consider from a peace point of view as I do quite enjoy my job and don't want to move anywhere right now!

Many thanks in advance

AIU taht you will be staying on your 4.5 day/week plus over payment salary despite changing to 5 days/week

Whats the difference between 4.5 day/week plus over payment and the 5 day/week rate? How long is the break even point, considering the over payments you've already received

sluisdejesus said:

Hi folks,

The HR manager has very kindly told me that they won't claw back the last 6 months of overpayment (why thank you!) but that my salary won't be increased in line with my hours.

Do I have a leg to stand on here or do I need to accept it - also please consider from a peace point of view as I do quite enjoy my job and don't want to move anywhere right now!

Many thanks in advance

Did they mean they won't claw it back in one go but that they will keep you salary down until they have recovered it or that you would stay on the 4.5 day/week plus over payment rate for ever?