Hi

I was wondering if you wise people could help me, My sister last year over a period of about 4-5 months was being overpaid in her wages, And didnt realise. She has since left the company. The company she worked for is now asking for it back.

Does anyone know her rights.

Thanks
Alix

As far as I am aware she has to return the money. Even though it was an accident, it would be considered stealing if she didn't return it

She'll have to pay the money back but will be able to keep any interest it's accrued.  It's down to the employee to make sure that their wages are correct.
Lara x

she will have to pay the money back as of course to do otherwise would be dishonest. The same applies if she had somehow got more in the bank, she would have to return the extra, the tax office of course also do the same if they owe you a rebate.

I am sure she would have contacted the company pretty sharpish if she had been UNDERpaid...............................

I once left a job in the middle of the day (stupid ****** ****** ****** of a boss!!!) anyway... the way they paid the wages was 2 weeks before, and 2 weeks in hand, so we got paid in the middle of the month. When I walked out, the boss called after me that I owed him half of my wages, I told him he could sod off, and I was taking it as compensation for putting up with him for 6 months! I never heard from him again, and never paid back a penny - not sure how legal, or honest it is but it worked for me! :D

It will probably come back to haunt me one day! :(

Natalie

Your sister will have to pay the money back as legally it is not hers to keep (it does not matter whose fault the overpayment is, employees have a duty to check their wages are correct). The company will invoice her for the net amount and she should receive a detailed breakdown of the overpayment.  She can probably arrange a repayment plan (over several months) with the company.

HTH

I was overpaid twice once when the stupid person imputing the information managed to pay me for 80 hours overtime on one day I rang & told the pay section before i was paid & put it in writing at the same time, three months later they slightly over paid me(again their mistake) & again I told them over the phone & in writing before I got paid. The second overpayment they recovered without warning the next month(part of my terms of contract that stated 1 calendar month notice had to be given before recovering it)the other I got a letter from the internal fraud unit stating I had been found to have deliberately claimed the overtime !! I went straight to my Union rep who went for the jugular as I had kept copies of my letter re the overpayment & I had rung the pay section in his presence & I got copies of the forms I had completed showing I had only claimed the correct amount. This rumbled on for several months with more threatening letters until the senior line manager of the pay branch rang me, he was full of apologies especially over the internal fraud letters threatening me with prosecution He had taken over my complaints & the alleged fraud. He decided that as I had I made no error & been harrassed by the internal fraud section under his managerment that I was to keep the money as an Ex gracis payment  & I received a hand written apology from the internal fraud officer for falsely accusing me & causing me stress & distress. He also apologised for the incorrect recovery of the second amont

What I had done was put the overpaid amount into a separate high interest saving account so I was quids in when the whole thing was sorted out

She should be able to repay the money over several months

Hi

Thanks for your reply's. I wasnt sure, How this sort of situation is classed. Dozy mare she is.

I will let her know she'll have to arrange some sort of repayment plan.

Thanks again

alix

When an excessive payment has been made by mistake it may be possible for the employer to recover the overpayment.
But it can have it's difficulties.
If the employer pays incorrect net pay, overpayments due to incorrect application of NI or PAYE they are legally allowed to recover the monies overpaid.
There are however two other factors to take into consideration money paid under a mistake of fact is not recoverable IF it
is intentionally paid without reference to the truth or falsehood of the fact.
Also another one is ESTOPPEL its use is restricted by the following rules.
If the employer has failed to seek repayment especially when the employee has queried it and the employer confirms to them that they have paid the employee the correct amount.
If the employee has changed his financial situation due to the extra funds it would then be unjust to require refund of overpayment.
The employee must not,due to his fault, have caused or significantly contributed to the relevant mistake.

Might be worth contact citizens advice for further info before your sister signs anything to say she will repay the monies overpaid etc.
Also the DTi websites etc.

You do have to pay it back by law but advise her to put it in writing and advise them she is willing to pay them back a £1 a month for the next xxxx months to pay it back. See what response she gets :D If it goes to court this may well be the payment schedule they agree on anyway ! :)

Lucy
xx