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

[IOnlyHopeItsGoingGoingGone]

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!

It's not your fault if you'd didn't (couldn't) notice due to the reasons above, but that doesn't mean you get to keep an overpayment.

You had 14 days to put it right and you've already just ignored as if you have some claim to the money.

Sort it and quickly, as you'd want if it were your wages.

You need to ask them to produce a correct payslip which it sounds like you never received. Say that you need the correct payslip which is a legal requirement and this would be to provide you evidence of the overpayment.

They clearly don't want to provide the full information because its too much hassle, however if they were to take you through a debt collection process, they wouldn't have a leg to stand on if they couldn't provide specific tangible evidence of why they maintain they overpaid you.

I expect you won't hear from them after that because it is a small amount and they're just trying to take a minimalist approach. But to be clear, the onus of proof is on them and you need to be able to evidence you have taken reasonable steps to resolve the matter.

It wouldn't be proportionate to sue over £100 so unlikely to do so. They couldn't recover legal costs if they did. So it would leave them more out of pocket.

Is it definantly from the company, and not a scam? Maybe with ringing hr (don’t use a number from the email), to check and ask for more details. Then I’d be awkward and ask to pay it off in instalments.

I’d start by checking that you definitely have been overpaid. Quite possible that they’ve messed that up.

if you have been overpaid, you will need to pay it back.

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.

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

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

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

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.

You should have got the emergency tax back surely?

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

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.

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.

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

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.

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.

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.

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.

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

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".

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 teasing 1p every week for the next 10 years.

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.

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.

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!

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.

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