Shocking Revelations Tonight!

Runnybabbit

Hi All, I'll apologise in advance incase this is not the correct board to post it to - BUT:
tonight, hubby came home from work and said "do you want the bad news?" (oh heck) -
Hubby works for local government dept - some time ago he was transferred to a new department for which he was paid an extra £40 per month. On numerous ocassions he queried, with the wages department (he has proof), that this £40 should not be paid to him.
They ignored his emails and continued to pay the amount - today, wages dept have said "Oh we've been overpaying you for some time now and we want the money back" which totals £880.00. They are intending to stop £48 per month from his salary which, due to the credit crunch and various other debts that we have, would mean financial hardship.
What's the best way to tackle this situation, and can they DEMAND this money back?
Afterall, if they'd taken notice of his emails in the first place, we wouldn't be in this flamin' mess now!:mad:
If this needs to go on another board, please let me know.

Burlesque_Babe

yes, they are entitled to the money back.

The best thing to do is to have a quiet word with a manager to explain your situation and ask for it to be reduced to, say, £20 per month.

MrsTinks

Yes they can take it back off him - sadly the fact he's been telling them again and again doesn't make much difference... What it MIGHT help with is reducing the amount they want each month from you...
Technically what you should have done is tell them again and again and again and keep the money to one side and not spend it ever so you can pay it back whenever they realise they have messed up... No I don't think it's right, but sadly that's how it works

Horace

Legally, the employer can ask for the money back, be thankful that they haven't asked for it to be returned as a lump sum. Do what other posters have advised and ask if the repayment amount can be reduced - if you don't ask then you don't get.

Good luck.

Runnybabbit

Thought as much, as far as the Manager goes, he IS the Manager! LOL. Like I said, it's the local government wages department we are dealing with here!.
Thanks for all your help guys.

fermi

Might be worth getting some advice. Although the strict legal position seems fairly clear.

Can my employer force me to give back an overpayment of wages?

Can my employer force me to give back an overpayment of wages?

Your employer can only make deductions from your wages in limited circumstances. They can deduct tax and national insurance (NI) and they can also make other deductions for which they have previously got your written consent or which are allowed in your contract of employment. (Different rules apply for shop workers).

An exception to the rule that consent is needed to make a deduction is where there has been an overpayment of wages (or some other payments, for example, expenses). In law, the employer can recover these through a deduction of your wages even if this is without your agreement.

However, if your employer gave the impression that the wages were correct at the time they were paid, you did not know that you had been overpaid and you have spent the money (and to pay it back would put you in a worse financial position than if the overpayment had not been made) you should argue that you should not have to repay the money.

Runnybabbit

Thanks Fermi, that's an interesting read. I think, under the circumstances, with it being his employer etc (who pays for the roof over our heads!), he needs to put in an 'official' complaint. I've had to do this myself recently with regards to a taxing issue, and I've had a positive result, with an individual being dismissed. They do themselves no favours really - grrrrrrrrrrrr.

Poosmate

Hi RB,

As your other half has been being overpaid for 22 months doesn't that mean he's paid more income tax and national insurance on it too? Is your hubby in any of the LG unions? If so he can ask their advice.

I wonder, although this is a bit of a long shot, if there are any rules/laws that give hubby "as of right" rights. I mean if you are in receipt of something for X many months/years it becomes yours as of right? Just a thought to maybe look into, again any union should be able to advise you of this.

If he has to pay it back then maybe he could negotiate to only pay back the last 10 months?

I think it's very unfair of them to ask for repayments of more than what they were paying him monthly! If anything they should only get it back at the rate it was given! But it was their mistake so should have to wait for their money whilst you adjust to your new level of income foisted upon you by them!

I hope it's not Birmingham City Council you work for because I've heard a nasty rumour about our salaries from next April which should strike fear into anyone who works for BCC! (for anyone who does, it involves Voyager! and I'll say no more!!!)

Poo

Runnybabbit

Hi Poo,

My god, hadn't thought of the tax and NI issue! - hubby 'left' the Union when they went out on 'strike' a few years ago as they hadn't had a decent pay rise for the past 20 odd years - (can't say more than that, but you get the drift), so the Union is a no-no. I think he should email again with reference to his tax and NI issue, although they will probably ignore that email too!!!. Please feel free to PM me regarding the BCC issue.

silvercar

The tax will sort itself out, you will have lower income and lower tax bill for this financial year. Same goes for NI unless you crossed a NI threshold.

Presuming this will all be done though PAYE, your income for this year will be lower to reflect the clawback and last years will be as it was - too high, but the correct tax taken. Unless this extra pay crossed you over tax boundaries you won't lose or gain by it.

If you are claiming WTC it may effect your payments.

tigerchick

I would write a letter of complaint to the payroll manager and provide copies of all the emails you/your OH have sent trying to sort this out. Also state that you are unable to pay this back at this rate. In my experience, i think it's also worth trying to have some of it written off as it was not your error (although its a long shot) but give it a try anyway.

Good luck