Bonus overpayment

papito · 20 February 2007 at 10:18AM

Hi all, Just wanted to share my experience and seek some advice and/or comments
Currently working, in September my Company decided to pay me a Bonus £200
In Octuber my line manager told me they are looking to pay it again. I got it paid and told my manager, in November I was told the same, My line manager has always told me it was at discretion of the Department Director and I may be paid again. I received and increase in my salary by the 20/11 and by the end of the month (paid monthly) noticed the bonus again....great.
bonus was paid in December and January, I did not complaint.
No I've been told there was a mistake and that I should have to be paid only in September and for this reason, £200 will be debited from my earniong from february for 4 months....
This of course will cause a problem to my monthly budget, I cannot afford to received £200 less.
Should I tell my Line manager I do not agree or the dept Director, and let them know it is their fault.
I do agree that if it wasn't for me then I need to give it back, but I was in believe that all this time it was authorize on a monthly basis and hence I earned it. and the worst of all is that it seems as if my manager and director think I made something wrong for not telling them I was receiving the Bonus and I think they should at least apologies to me!!!
Should I just pay it back and keep silent?
Should I not accept it and told them it was someone else mistake?
Should I ask them that I will pay but only 50 per month? (which I may afford but them £800 will be long time to pay)
Anyone knows were my legal rights are here?

Any comments and advice will be appreciated...Thanks

machairs · 20 February 2007 at 10:32AM

I was overpayed once but never noticed. Payroll did, alerted HR who contacted me and arranged a mutually agreeable repayment scheme. In fact HR said as it was the organisations fault, I could call the shots as to how much or little I repaid as long as it eventually got repaid.

Astaroth · 20 February 2007 at 12:01PM

Keeping something that is not yours is legally theft... however it most likely would be seen in a favourable light if you simply said you didnt realise it wasnt yours and agreed to repay it.

Legally they are entitled to request it all back at once, if you cannot afford this and it was to go to court then the court would set a monthly amount (plus interest) for you to repay it based on what the court believes you can afford.

Realistically companies dont generally like suing their employees and so as long as their employee is reasonable about repayment terms companies also tend to be reasonable. Subject to what your monthly pay is £50/month may or may not be considered reasonable.

A similar thing happened to me once where I was to receive a £5000 net payment but they originally put it through as a gross payment (so tax was deducted). This was raised with payroll but rather than giving me the additional £2000 net salary next month they accidentally gave me another £5000 (though managed to make it net this time). It was technically spotted before it got paid to me but due to backlogs the error couldnt be corrected in time.

Mine was slightly different as I knew even before it went into my bank that the error was going to be there but I was still given the options of 1) repay it straight away by cheque 2) have it deducted from my next salaries in full 3) pay it back over the next 6 months.

papito · 20 February 2007 at 12:37PM

Astaroth wrote:

Keeping something that is not yours is legally theft... however it most likely would be seen in a favourable light if you simply said you didnt realise it wasnt yours and agreed to repay it.

Hi, thanks for you comments, But I think that I have not been overpaid, because the company told me they will on a monthly basis consider to pay me a Bonus (£200) and it will be reviewed month by month. Apparently HR had put this bonus as automaticly be added to my salary , but I was in the believe this was due to the review withing my Line manager and the Dep. Director. Actually I remeber asking my linemanager in Octuner and November if I would get it and he said to "don't know we are looking into this" so If i got paid I just tought all was ok. Nobody told me We will not make any furhter Bonus payment to you anymore. I know what anyone would think. "OK but if it wasn't meant for you, then is not yours and give it back", but how do I know if this was accepted to be given to me and now they realize they shouldn't?

Morglin · 20 February 2007 at 1:20PM

If they now say you weren't entitled to it, then they will take it back.

To avoid them taking it all back at once, it's probably best to sort out paying them back so much a month.

Lin

C_Ronaldo · 20 February 2007 at 1:35PM

id agree to pay say £20 back a month, surely if they agreed to pay you thye bonus how can they take it off you

ontheup_3 · 20 February 2007 at 6:33PM

Im sorry but i think some of the things that have been said are rubbish!!!

Yes it is their money
Yes they should have it back if they feel is was a mistake
It is in no way theft if it was thier mistake and you asked about the bonus and your manager told you it was correct

But in no circumstance should they ....

1. Take it all in one go
2. demand the repayment rates

I would go into the top boss's office and explain what you was told EACH and EVERY month that you asked about the bonus and if they feel it was still a mistake then you will gladly pay it off at a suitable rate which you can afford without causing you financial difficulties , if they do not agree with them terms i would say then take me to court because no court in this land will side with the employer and make someone who thought it was thier money/bonus pay the full amount back in one go !!

Dont take the micky and say £1 a month lol but aslong as its a fair amount the wouldnt really thin they would want to fight you over it

Hope it helps mate

Bonus overpayment

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free