Overpaid but rate was advertised first

mentalmike · 19 October 2018 at 10:14AM

Hi, bit of advice please.

In a situation where we were told there was an incentive to encourage more people to work extra shifts and that the hourly rate would be increased. Over a month later we were told this was a mistake and that we would have to repay the extra money. Is this allowed? I can understand that if for example the rate was £10 and I was paid £15 that they are within their rights to take this money back, but the fact that they advertised it was now £15 I don't get how they can now ask for this back?

Any advice or links to where this is or isn't allowed would be great.

ReadingTim · 19 October 2018 at 10:39AM

Depends on what you mean by "they advertised it". If you had written proof (e-mail, staff notice) etc you'd have a case. Without that it's going to be harder, as the company could argue it's hearsay, or simply one manger acting without authorisation / made a mistake....

It's pretty poor management, and hopefully they'll allow some sort of staggered repayment or deduction from future wages, but if you're hoping that you can simply keep it, you might be disappointed...

TBagpuss · 19 October 2018 at 10:55AM

I'm not sure if they can. If they offered £15 and you accepted and worked the extra time, I think there is a strong argument that there was a variation of your contract BUT it will depend on the specifics.
- How was it 'advertised'? do you have a copy of the relevant e-mail / notice whatever?
- Who by? If it was someone senior then it may be that the employer is bound by their actions even if they didn't have authority, and that I would be a disciplinary matter for that person.

At this stage, I would suggest that you respond to your employer to say that you understand that the higher rate won't be paid moving forward, but as you accepted the extra shifts in good faith in reliance on the offer of the higher pay, you do not consent to the rate being lowered retrospectively for the shifts already worked or to any repayment.

HOWEVER consider also how long you have worked there and whether the amounts involved are such that you are willing to have this fight.

if you are in a union, ask your union rep for assistance. If not, speak to ACAS.

Overpaid but rate was advertised first

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