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Original poster

Overpaid by work - what now? Advise please

66 replies

Smarshian · 13/08/2020 07:06

I started a new job in November and was overpaid from the start. I told my manager and nothing was sorted. I then started getting paid even more - I told them again and they eventually sorted it, by which point I owed them £1800. They said they would take it from my salary over 10 months. Fine.
We are 3 months down the line and I’m applying for new jobs and hopefully will be leaving in the next 4-5 weeks if the interviews go well.
What happens then?
I will still owe about £1000. Can they still claim it? Can anyone help? I can’t afford to lose it all out of one pay packet.

OP posts:
Coriandersucks · 13/08/2020 07:07

So you’ve spent the extra money they paid you?

user1493413286 · 13/08/2020 07:10

Unfortunately they can take it from one pay packet as really you shouldn’t have been spending the money that was overpaid. No one can really answer this question for you though as you need to speak to your payroll department and see if you can reach an agreement

victoriasponge678 · 13/08/2020 07:14

If you knew you were overpaid why did you spend it ?

I think you are going to have to offer them a payment schedule but they may ask you for the whole amount in one go ?

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Employment advice
BananaSpanner · 13/08/2020 07:16

Yes they can take it in one pay packet which they will likely do if you are leaving.

Why did you not put extra to one side if you knew you were being overpaid?

Ohhgreat · 13/08/2020 07:16

The answer is yes, they can take it from your final pay packet.

Pootle40 · 13/08/2020 07:17

I would have thought they will deduct it from your final salary.

Nishky · 13/08/2020 07:17

Well you take the overpayment out of the separate account that you put it in when you realised you were being overpaid and give it back to them.

Why would you spend money if you knew it was an error. If you didn’t know and thought you were entitled to that money, that is different.

pinkcattydude · 13/08/2020 07:17

Unless agreed with a manager (very unlikely) our company would deduct from final pay to ensure correct reporting. We’d also chase any payment that went into negative. As you knew you were overpaid you should have paid it back or kept it aside.

Ickabog · 13/08/2020 07:18

Why and earth did you spend it? Yes they can ask for it all back at once, and leaving doesn't absolve you of paying it back.

BarbaraofSeville · 13/08/2020 07:19

If they take it all from your final pay packet, you'll just have to bridge the gap by other means until you catch up, be as frugal as possible with spending, use savings that you should have due to the overpayment otherwise credit card/overdraft.

But if you were overpaid, and you knew that this was happening, why didn't you just return the £1800 or let them take it from your next 1/2 paypackets until it was sorted, rather than having it drag out over 10 months?

moveandmove · 13/08/2020 07:21

Yes they can take it out of your final pay.

TheOnlyLivingBoyInNewCross · 13/08/2020 07:23

Like others, if you knew this was happening from the start, I'm confused as to why you can't afford to pay them back - surely the overpayment has just been sitting there untouched waiting for them to claim it?

Or are you saying you've spent money that you knew wasn't yours to spend?

enjoyingscience · 13/08/2020 07:23

They will most likely take it from your final pay, which they are entitled to do. I can’t understand why you spent it if you were aware from the start it was an overpayment?

If you really can’t afford it, you might have to put off moving jobs until the debt is lower. Whatever happens, you’ll have to pay it back.

dudsville · 13/08/2020 07:23

I was in your situation once, except for leaving part way through them reclaiming the money. It's stupid they can't just take it back once you've reported it and this it's a good example of why. Of course you shouldn't have spent the money but there's no point now stating over that. Only payroll can answer your questions. Good luck with it all.

Huhokthen · 13/08/2020 07:24

When this happened to me i paid it all back instantly out of my next paycheck, why on earth did you spend the money!?

OnlyFoolsnMothers · 13/08/2020 07:24

They have every right to come after the money and you agreed to pay it back. You should have just transferred it back.

nicky7654 · 13/08/2020 07:28

The over payment is never simply taken straight back! H/O I have had this before and it seemed to take them forever to sort it. I.also once rung the Office for over payment of Child Tax Payments (kept paying me although I rang with Change of circumstances) Was £1800 but they said.they couldn't take it back until the start of new tax year. This was months away so I spent it and had fun doing so. And I never paid it back as I wrote and said I didn't have it and it's their fault for not taking it when asked. OP your final wage after giving notice may have everything owed to them taken out or they may carry on being useless!

Erictheavocado · 13/08/2020 07:28

I don't understand how you knew you'd been overpaid from the start, yet had to pay it back over several months? Surely, as soon as you realised and brought it to their attention, you either put the overpayment into a separate account, or left it in your current account but mentally 'ringfenced' it so that you didn't spend it?

Either way, given that you knew it was an overpayment and you have agreed to pay it back, if you now leave I would definitely expect them to deduct the amount outstanding from your final pay. I don't know whether it is still the case, but whenever I've left a job, my final pay has always been paid on the last day of my employment and has always included any adjustments for things like holiday pay, whether it's been due to me or I owed them. It was explained to me that when you leave you should effectively cease to be a line on their balance sheet. I would expect your situation to be the same.

CleanQueen123 · 13/08/2020 07:29

In the company I work for we'd take the maximum amount our policy dictates we can from your final pay then invoice you for the rest. The invoice would be passed to our credit control team to work out a payment plan.

It's amazing how many people are overpaid, in some of the cases I see receiving their full salary for months after they've left, and then claim they didn't notice and they'll face financial hardship if they have to pay it back.

I also don't understand why you wouldn't put the money aside ready to pay it back.

VettiyaIruken · 13/08/2020 07:33

Repeating others I know but why the hell did you spend it when you knew it was an overpayment?

You knew it was an error. You surely knew they would want it back. Why on earth didn't you put it in an account and not touch it? You wouldn't have been in this position.

You'll just have to be short in your last month, or ask for a payment plan.

Original poster
Smarshian · 13/08/2020 07:36

They overpaid me every month for 6 months. When I first brought it up with my manager she said don’t worry about it. Then the next month she said - oh don’t worry they won’t take it all back of you. I brought it up again and they said they would look at it.
Basically she gave me the impression that because I was doing a good job she would be able to write off some of the overpayment.
It took them 6 months to fix it so although I had put some money to one side and I do have savings I could give them back it feels a bit of a blow to not be paid at all in my last month (the amount I owe will wipe out my wages).

OP posts:
user1494050295 · 13/08/2020 07:36

I had this. I owed about £2k. They took it from my final pay check but still owed more. I negotiated to pay it back in instalments at £100 a month. See if you can do that

Bellringer · 13/08/2020 07:39

First world problem

FredaFox · 13/08/2020 07:42

But you probably only increased your savings because you had the extra pay so it’s only a blow to give it back because you likely your shiny savings? It’s not yours give it back. Start a new job without having debt to pay back. Clean break
I was overpaid £5k. Paid it straight back, didn’t touch it even though colleagues it also happened to bought holidays and cars with it

OnlyFoolsnMothers · 13/08/2020 07:42

And I never paid it back as I wrote and said I didn't have it and it's their fault for not taking it when asked tbh your argument doesn’t work legally. They would have every right to pursue the money through the small claims. In addition companies can not just “take back” the excess funds once paid into your acc, banks won’t allow it.