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AIBU?

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Original poster

AIBU to ignore previous employer's request to repay overpayment?

105 replies

IOnlyHopeItsGoingGoingGone · 04/07/2024 16:57

I worked for a company last year for 7 weeks. I was only there a short time because they were dreadful and my manager was even worse, so I cut my losses and left before it all started to get to me (which I knew it would, it was only a matter of time). So, I left in May 2023. During this time, I didn't get a full month's payslip, so had no idea what my normal monthly pay was. I was also put on emergency tax, so grossly overtaxed for what I did do. I'd also accrued some travelling expenses, which were due back to me, and took me a lot of chasing and over a month after I left to actually get. So it was all a bit of a mess, and I just wrote it off, put it down to experience and moved on. Anyway, a month ago (so over a year after I'd left) I received an email saying that due to an admin error, I'd been overpaid and that I needed to pay back what was owed as a matter of urgency. This was not a huge amount (around £100). They also insinuated in the email that I may have been aware that I had been overpaid (certainly not the case due to the reasons I mentioned above). They gave me 14 days to pay what I owed. I ignored this email. Now, a month later I've received another email saying that the matter is urgent and if I don't pay up within 14 days they will pass my case to their debt collection agency which may incur additional charges and affect my credit score. Would they really do this for such a paltry amount, when it's their error, over a year since I left the business?? Wouldn't it cost more in legal and admin to try and recover it than its worth? Are they just bluffing and AIBU to continue ignoring this? I don't even know if what they're saying is correct anyway!

OP posts:
PickledPurplePickle · 05/07/2024 06:39

Reply to them - don't ignore

You have previously acknowledged that you were overpaid, so you were aware of it

I would ask them for revised payslips, along with their calculations so that you can confirm the amount, and that once agreed, you will repay the amount

BillyNoMates9 · 05/07/2024 06:39

I would pay it.

I had similar from a previous employer, they contacted me about a c£100 overpayment, the first letter said it would be passed to debt collectors etc.

The second letter it did go to debt collectors! Remember it's cheap for them to pass on, you'll pay the costs of debt collectors not them (I've worked for a company who passed debt on in this way). You'll probably get extra charges added, which will be the fees of the collection agency.

Do you really need this much aggravation for £100?!

Londonrach1 · 05/07/2024 06:36

Legally they can take the money back and they given you a warning. Talk to them. You can't ignore this as you could get in trouble even though it was their fault to start with.

Original poster
IOnlyHopeItsGoingGoingGone · 05/07/2024 06:31

Thank you for your replies everyone. I do agree that if I were genuinely overpaid then I should, of course, pay it back (albeit in instalments to ensure I am not negatively impacted after such a long period of time). However, it is really more complicated than I initially thought it was. I have trawled back through my emails and found more information that muddies the water even more. As I mentioned, I was only there for 7 short weeks. During this time (financially) I went through the following: I started early in April, but late enough to miss the pay day cutoff, so had to wait till May's pay day (end of May) to be paid for May +most of April. I left early June. During that time I started as full time, and at some point, I went to part time (30 hrs). Going to part time meant a reduction in hourly rate. Once part time, I actually did a day's overtime one week, and we had a couple of May Bank hols in the mix. And then I'd accrued some holiday in the 7 weeks I was there that I didn't take and would have been paid for when I left. I was also in the emergency tax code (which is by the by, I accept, but it does make the whole thing even harder to calculate). I'd completely forgotten, but when I left they sent me an email saying I owed them more (than this new amount). I counter emailed with what I believed were my calculations and they then decided the amount was less (than this new amount). As I was still owed several hundred in travelling expenses, I didn't pay it at that time as I wanted my expenses back first. It took an email chain of 20 emails, and over a month after I left the company) to eventually be paid my expenses. By then, I just wanted to forget this company ever existed. I had a new job and wanted to move on with my life. I received no more correspondence regarding the overpayment and assumed it had all been resolved..... until over a year later when they came back to me with yet another totally different amount! So, I think the onus here is for them to provide me with correct calculations (that I can understand) to prove this. I want to know WHY this was not pursued last year when it appears they were obviously aware that something might not be right, WHY it's taken so long to revisit (including 3 months after the end of year calculations would have been made), and WHY the amount now differs from the last email correspondence I have. Only when I am completely satisfied that the calculations are correct, will I offer to pay in instalments. They were a complete shambles from start to finish. My manager was a joke, I was taken on as a manager to run a new department. The first time I met him the first thing he said to me was "Betty (deputy manager long time employee) could have run this department with her eyes closed but you gave a better interview". I knew from that point that things were NOT going to go well. I'd also said in my interview that I had a holiday booked over Christmas. In an initial meeting with him, he said that he's have to go higher to authorise the holiday but it was unlikely I'd get it!. And I was taken on to manage the new department, but in the 7 weeks I was there, I was never actually allowed anywhere near it and it was set up by Betty and the rest of the team whilst I underwent 'training' in a completely different location with incompetents who cut corners and didn't have a clue what they were on about! This is why I jumped after such a short time. The place was toxic and I'm too long in the tooth to put myself through it so I gave my weeks notice and quit with nothing else to go to (although it didn't take me long to find another role).

OP posts:
ViaRia01 · 04/07/2024 19:57

I’d be inclined to request that they send all evidence relating to this apparent overpayment, including receipts for the expenses. Basically ask them to outline exactly what you should have been paid and when vs what you were paid.

Act as though you’re very keen to cooperate with them but you of course need them to clarify why they believe you owe them £100.

roses2 · 04/07/2024 19:51

This has happened to me before and it did get passed to a debt collection agency because HR did not respond to my repeated requests for detail on my final payment! They are entitled to pass on to a debt collector but make sure you have in writing that you've tried to resolve:

  1. Ask them to provide the payslip and any other data to support the overpayment request you have asked for
  2. You have already paid tax. You can't just pay them back £100 if they have overpaid by £100 as you would have paid tax and NI so you can only pay them back the net amount or they need to update your tax record so you don't end up overpaying
Oblomov24 · 04/07/2024 19:43

That's absolute nonsense. @NegativeNelly
It's a matter of principle. Any monthly reconciliation of the net wages, payroll, pension control account, would highlight the error. And should be addressed asap. ie ask employee to pay the overpayment back. Nothing to do with cash flow.

NegativeNelly · 04/07/2024 19:39

No definitely don't pay it! Their mess as they should've done things properly back then! And should investigate how it happened with their finance department!
Sounds like they are in money trouble and are trying to get anything they can back. I highly doubt they'll go legal route for such a small amount. Just continue to ignore!

daisychain01 · 04/07/2024 19:29

PonyPatter44 · 04/07/2024 18:31

Tell them to send you a correct payslip, and mention the emergency tax, etc. When they send you the corrected payment request, offer a payment plan of £5/month.

The emergency tax is irrelevant, they did the correct thing if the OP didn't give them a P45 to enable the correct tax deductions to be made.

Oblomov24 · 04/07/2024 19:28

I can't quite remember the legal case now, but I think it was Irish, possibly British Gas. Or some sort. Where they set the precedence, in the last 3 years? for timeframes for repaying overpayments.

You can plead poverty and say you can only afford to pay them Wink teasing 1p every week for the next 10 years. Wink

But re the fact you do actually originally owe the repayment itself, I think you'll find that as the employee you are very weak, and the employer is in a strong position.

Oblomov24 · 04/07/2024 19:19

This is A LOT of misinformation on this thread.

An awful lot.

I'm sorry but this @Miloandfreddy
Eg this - Is not simply true :

"They're not going to just pass your details to a debt collection agency. They'd have to go through the courts first I'd imagine and can't see them bothering over £100".

Oblomov24 · 04/07/2024 19:15

Th emergency tax has NOTHING to do with the overpayment issue.

Oblomov24 · 04/07/2024 19:14

I disagree with most, an overpayment is due to be paid back and you were silly to ignore their 1st email. They do have every right to suggest it goes to debt collector.

But I would ask for explanation, payslip info first.

PonyPatter44 · 04/07/2024 18:31

Tell them to send you a correct payslip, and mention the emergency tax, etc. When they send you the corrected payment request, offer a payment plan of £5/month.

daisychain01 · 04/07/2024 18:30

WindsurfingDreams · 04/07/2024 18:18

You should have got the emergency tax back surely?

I'd ask them to produce the payslips before you decide

Yes - If the OP didn't give them their P45 from their previous employer, the employer did the right thing putting them on Emergency Tax. As the OP was only employed there for a month, they would need to contact the tax office and arrange for a self assessment so that HMRC would then issue an instruction to the new employer to reimburse the overpaid tax by an adjusted tax code.

Meadowfinch · 04/07/2024 18:27

Agree with @Lifechanging12

Ask them to produce an accurate payslip. Query pension payments, tax, holiday pay, overtime etc.

If they are willing to waste someone's time for £100, then they probably would hand it over to a debt collection agency.

Lifechanging12 · 04/07/2024 18:21

Sounds like a bit of a mess. You for ignoring their request and them for asking for £100 a year later.

I would ring them and ask for a proper payslip and make sure you do actually owe them £100. Go through everything with them.

do not just ignore

LittleGreenDragons · 04/07/2024 18:19

Ask them for proof of overpayment. Point out the wages, tax and expenses statements were an absolute mess when you left so you need to see clear and concise workings out before you do anything.

madameparis · 04/07/2024 18:18

Have they provided you with a payslip and proof of the over payment? If not reply with a very simple and polite email asking them for your payslips covering the whole time of your employment and proof of over payment. You won’t be responding further until you have been provided with all evidence.

They can of course legally pursue you for accidental overpayment. Whether they will bother for the sake of £100 is another question.

WindsurfingDreams · 04/07/2024 18:18

You should have got the emergency tax back surely?

I'd ask them to produce the payslips before you decide

FKAT · 04/07/2024 18:16

I can't work out if YABU unless I know if you were overpaid or not. Have you calculated the exact amount you should have been paid (exclusive of expenses) versus what was put in your bank

If you think you were done on emergency tax, you should fill in a self-assessment form.

Mrsttcno1 · 04/07/2024 18:14

You would be wrong to ignore this as they are entitled to the overpayment back and can pursue it for up to 6 years after you have left so 1 year is nothing really. If you continue to ignore then they absolutely can take you to court for the money. Get in touch with them and set up a payment plan, you don’t have to repay it all in one go, you can say a monthly amount as long as it is reasonable

Miloandfreddy · 04/07/2024 18:13

They're not going to just pass your details to a debt collection agency. They'd have to go through the courts first I'd imagine and can't see them bothering over £100

MadeForThis · 04/07/2024 18:10

I imagine they would have to take you to court for repayment. Not pass your details to a debt agency.

Hadalifeonce · 04/07/2024 17:50

I was overpaid once, I didn't spot it as it was a commission payment, they advised me about 6 months later. I did agree to repay it over 6 months.
I was talking to the MD of the company sometime later, he told me there was no way he would have paid it back unless they advised him within 3 months.