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just found out i've been overpaid for months and will have to pay £000s back.

20 replies

wotnopulling · 27/11/2008 13:54

went back to work part time after mat leave (late sept) but paperwork not done their end (i did all my bit).
i haven't been getting pay slips as moved room while on mat leave and post going missing. someone found slip for this month in random part of building and brought it to me. saw straight away overpaid, rang payroll and they confirmed still down as full time!
horrified. didn't realise as wasn't keeping close eye partly because everything i earn goes to childminder and partly because as soon as i got back to work i was sick for a month so not across things as usual. did see first pay slip and thought little high but thought prob cos didn't reach tax threshold while on mat leave so got a bit more. wasn't for full month or i'd have spotted it.
what am i going to do? no idea how much i've been overpaid but where am i going to get money to pay them back? vaguely thought things not as tight as i thought they were going to be. what an idiot.

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flowerybeanbag · 27/11/2008 14:00

So it's 2 and a bit months of f/t. How part time are you, I mean how much difference is it in terms of hours or a percentage? I'm assuming (hoping) it can't have been a huge difference if you were able to spend all of it it quite easily without noticing that there was lots more than you expected?

As it was their mistake, they ought not really expect you to pay it back in one go. I would advise that you propose to have a set amount deducted out of your salary for a few months until it's paid back.

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wotnopulling · 27/11/2008 14:09

i am not sure i have spent all of it (calming down a bit now after original shock). i work 3 days. they're paying me for 5. it's just i'm already being hammered for pension payback for while i was on mat leave and i know i am (or will be when money sorted out) out of pocket by the time i've paid for childcare and tube fares and lunches/breakfasts. so i really don't have any 'spare' to pay them back with. so i didn't notice i guess because i should have been in the red and was in the black - if that makes sense. didn't think about it deeply just thought maybe tax not as much as i'd thought or something.
if only i'd got my pay slips!

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wotnopulling · 27/11/2008 14:11

and my mat leave ended a month before i actually started back at work so three and a bit months. gawd. just what i need before christmas.

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babyOcho · 27/11/2008 14:19

I took unpaid leave a few years ago to go travelling, and got paid although HR knew about it.

They took it back in installments at a rate that we had agreed because it was them who cocked up.

Not sure if this helps. Good luck.

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flowerybeanbag · 27/11/2008 14:42

What was happening between mat leave ending and you starting back then? Holiday? If it was holiday accrued during mat leave then it would all have been accrued at your f/t rate if that makes any difference?

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MascaraOHara · 27/11/2008 14:47

IOur place takes money back in agreed installments when this happens

BUT

you can refuse to pay it back.. depends how much you value your good workign relationship with them though

peopel ahve walked away with 10's of thousands of pounds after a payroll cock up at my place

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flowerybeanbag · 27/11/2008 14:56

How could she refuse Mascara? There's no legal basis for refusing. Wotno is perfectly aware the money isn't hers, and has had it confirmed by the employer that it was a mistake.

They have every right to deduct it, although should do so fairly and reasonably, which would normally involve instalments.

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wotnopulling · 27/11/2008 14:57

yes, holiday between mat leave and starting back. just doing feverish sums. reckon i owe in region of £4,500 and have prob spent around £2,000 of it - which sounds about right - a few months living just beyond means, buying birthday pressies, etc.

glad i realised now and not much later. kicking myself for not realising earlier. i had transfered last of savings which muddied water.

love to not pay it back! pretty annoyed at them for stuffing this up....but hmm. not really a large enough sum to put myself on the hit list for!

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wotnopulling · 27/11/2008 14:58

yes, it's not mine. just rather unfortunate that i've given it and was dumb enough to spend it.

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RibenaBerry · 27/11/2008 14:59

What Flowery said . They have every right to take back overpayments. If Wotno doesn't co-operate, they could easily just take her whole next pay cheque (or whatever less it takes to pay back). Much better to agree instalments. Most places are pretty reasonable if you are.

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MascaraOHara · 27/11/2008 14:59

dunno the ins and outs.. just know that some employees at my place took legal advice and didn't have to pay it back legally some refused to pay it back and we are talking sums well in excess of 10k per person.

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MissisBoot · 27/11/2008 15:04

There has been case law where employers have clawed back overpaid salaries and it has been agreed as a wrongful deduction of salary.

You have to give your consent for them to clawback overpayments.

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flowerybeanbag · 27/11/2008 15:17

As far as I was aware overpayment of wages doesn't require consent from the employee...

Ribena?

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wotnopulling · 27/11/2008 15:37

it would take more than one pay cheque to repay full amount. i'd get nothing till spring! no, much better practically and ethically to co-operate i think.
i will push for a deal i can manage though (although not sure what that will be as i have no spare at end of month.)

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abcmum · 27/11/2008 15:40

Agree Flowery - Recovery of overpayment does not constitute unlawful deduction of wage - specifically excluded from the protection under ERA.

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RhinestoneCowgirl · 27/11/2008 15:48

I have been overpaid recently - although not by such a margin, had dropped my hours from 3 days to 2, and my hourly rate is pretty scanty... anyway have agreed with my employer to pay it back at a set amount every month.

In your case I would make sure you have a good discussion with them about what is an affordable amount for you. As you say, you know that it isn't your money, but it is a bit of a shocker to have to suddenly repay it. Would be v dubious of anyone who says you can refuse to pay tho . Also things may even out a little as you will be paying less tax, although from experience you often have to wait until the end of the year until IR works it out.

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RibenaBerry · 27/11/2008 17:05

Flowery is right (as ever).

Clawing back other costs (e.g. costs of courses or training) needs employee consent. So does clawing back holiday taken in excess of entitlement at termination. There is no need for written permission to claw back overpayment of salary (s14 of ERA, for the total nerds)

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MascaraOHara · 28/11/2008 10:31

that might explain it, the ones I my place were to do with retention payments

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RibenaBerry · 28/11/2008 11:26

Ah, those are completely different. You DO need written permission to claw those back. Mystery solved .

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LoveBeingAMummy · 30/11/2008 11:32

Must admit I hate having to get someone I've just dismissed to sign the form to allow us to recover anything if we overpay !!!!

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