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Original poster

Have overpaid nanny who is leaving. How do I handle this well? Advice from nannies and employers pls

38 replies

tiggersreturn · 14/07/2011 14:01

My nanny works part time in school term and full time in school holidays. We agreed at the start of her employment that she'd rather be paid an averaged sum each month than the actual hours she works as it makes it easier for her to manage financially.

I'm about to go on maternity leave and my nanny was aware of this. I was going to offer reduced hours in the school holidays (as I can't afford to pay full ones and have no need of them if I'm at home) but before I could do so she handed in her notice after an incident.

I have just managed to get an answer out of my tax people on what the salary position is. If I don't pay her for this month I will have overpaid her by about £700 because of the hours she's worked and when she has taken her holidays (during school holidays generally).

I have no intention of trying to reclaim this from my nanny. I very much doubt that she has that sort of cash sitting around. In fact she probably owes me more than that because as a goodwill gesture (and to prevent her coming into work sick) I've been paying sick pay where the contract only provided for SSP after the usual period.

What I'm more concerned about is that she is obviously expecting to be paid for working her final month (part of which is holiday) and while I do sympathise with her position I can't afford to overpay her anymore.

How would you recommend handling this? I have a leaving present for her but that's hardly the same as your rent money......

Her last working day is next week and I'd like to explain what is about to happen. When is the best time to do this?

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HavePatience · 14/07/2011 17:43

You are thinking of having her pay it back? Seriously.... Imagine for just one millisecond that your boss ha been overpaying you or dh (whoever higher earner is) and you had no idea, you just thought it was your salary or employer being generous. Then, just as your job is about to end, your boss tells you that either a) you'll be paying back the overpaid amount or b) you will work for no pay for your last month.
I know that personally while I'd feel horrible about being overpaid and want desperately to make it right, I probably wouldn't be able to afford to. I would be really angry with my employer as it would be their mistake and if they had done it properly from the start or told me MUCH sooner than my last month of employment, then it wouldn't be such a financial nightmare for me paying my bills.

Original poster
tiggersreturn · 14/07/2011 16:56

Have just spoken to Acas and payroll people again. All the overpayment relates to holiday taken. Acas' suggestion is come up with some sort of paying back plan but since employment is terminating I'm not entirely confident of this working. What a mess...

OP posts:
Novstar · 14/07/2011 16:55

Well I'd tell her now, because I like to try and be nice, and expect the nanny not to return the money or turn up at all. It's the crap you take when you're an employer. I've lost money several times this way (although not as much as £700)... I learnt not to overpay anyone at any stage.

HavePatience · 14/07/2011 16:39

You have to tell her. Imagine your boss suddenly told you that you've been overpaid and you'll have no income this month as a result. Wouldn't you rather know ASAP so that you could make alternative financial arrangements instead of them waiting until the last day they need you???

wakeupandsmellthecoffee · 14/07/2011 14:58

what was the incident . I am a nosey cow and I make no apologies for this . lol . And I think you have to remind her about the money situation .

Original poster
tiggersreturn · 14/07/2011 14:26

It is in her contract and I think the only thing I can do is point out how "nice" I'm being by not reclaiming. But equally I feel dreadful that she's not going to have any income coming in this month

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Original poster
tiggersreturn · 14/07/2011 14:25

Thanks. I was wondering if it's worth printing out the spreadsheet from the nannytax people and going over the hours with her along with our original agreement to double check if there were any more hours that she might have worked which aren't included. However, my records are pretty good and all it's likely to do is just reduce the amount of overpayment - not pay enough to give her anything for this month.

I'm nervous of doing it before she leaves (early next week) in case she doesn't turn up but equally I feel morally obliged not to have this come as a complete surprise on her final day.

The real problem is that August would have counted as the equivalent of 2.75 school months and by not working it this has caused the problem.

God I hate this!!!!!

OP posts:
Karoleann · 14/07/2011 14:24

Is it in her contract that you can deduct money from her salary if she's taken more holiday than accrued?

If it is then I wouldn't mention it

If she queries it you can print out this page

www.direct.gov.uk/en/Employment/Employees/Timeoffandholidays/DG_171945

and point it out in the contract.

DandyGilver · 14/07/2011 14:19

Yes definitely highlight that she has been overpaid.

(A girl who worked with us had real difficulty grasping that the holiday allowance was for the whole year and if you leave after 3 months of the year having taken 5 weeks holiday there will be an element of clawback in the last month's wage. She was talking about going to the papers!)

springboksaplenty · 14/07/2011 14:14

To be slightly more helpful, I still suggest telling her on her last day or, as azazello suggests, on the last day you actually need her.

I would perhaps detail in a letter the hours she has worked, the sums paid to her and what she actually was owed. Then highlight the overpayment and state that you will not be seeking a refund. That then puts her in the position of realising how generous you are being (and you are!) rather than making it seem as if you aren't paying her, when in actual fact you have (over)paid her in advance.

DandyGilver · 14/07/2011 14:10

I think maybe a letter including a spreadsheet with what she has been paid over the year and including a copy of the contract which details the salary agreement.

If she is obviously expecting to be paid then it would be kind to remind her of the position quickly, although if you think that she would then just stop turning up maybe you don't want to do that.

azazello · 14/07/2011 14:06

As soon as you can manage without her.

springboksaplenty · 14/07/2011 14:04

On the last day.