£3000

[up5hitcreek]

So I misunderstood my workplace’s policy about repayment of OMP if I don’t return to work. Apparently I have to pay back £3200. I was sent the email at 3 o’clock today. There was mention of setting up a repayment plan at the end of the email but I haven’t had a reply to me asking what this would entail, and I doubt I will hear until Monday.
So now I’m panicking that I need to find over £3000 or even find money to pay it back on a repayment plan. Does anyone have any tips or advice? Either for getting the lump sum together or what I could be expecting to pay on a repayment plan.
It’s a lot of money and I have no idea how we can get it together. Any help would be appreciated.

Not sure what they'd expect on a payment plan but much better to try and make one rather than end up with them taking Court action.

Did you start a different job?

Don't panic. They have suggested a repayment plan so there you go that's what they will do when you start a new job. If going back for the period required not possible ?

What did you misunderstand about the policy???

If you got the email at 3pm on a Friday, then replied- then yes, I too wouldn't expect a reply till next week- at the very earliest!

The fact they are mentioning a repayment plan is good for you and presumably they are willing to work with you, rather than recoup the whole amount in 1 lump- which I would assume they could do as its written in their policy! The fact you misread/didn't understand it isn't their issue or fault at all!

Sit down and work out how much you can realistically repay each month e.g. £50, £100? Make sure you include potential increases in gas, electricity etc.

Offer less than you can afford I.e. if you can afford £100 per month offer £75. This gives you negotiating room, they will ask for more, just state it is all you can afford. If you have to go up to £90. If they accept, they will normally either provide bank account details so you can set up a Standing Order each month or a DD form.

Remember they want the money back in the easiest possible way. Whilst they would want a lump sum, offering a regular monthly payment is better than the additional time, effort and cost of having to pursue you via small claims court.

Meant to say, get confirmation if you are paying back gross or net overpayment and ask how they will adjust Tax, NI and pension payments.

Could you not just go back to work for the 12 weeks or whatever time you need to work to nullify the obligation of the repayment? Plus you get paid while you're at it

Very sensible advice from seems

The policy states ‘A woman who has been paid 12 weeks’ half pay (OMP) because she intended to return who subsequently does not return for a period of at least 13 weeks, must repay the amount received’.
I understood this as I would have to repay the 12 weeks half pay. The £3200 to repay is much higher than the figure would be if it were just the 12 weeks. I’m assuming it includes the 2 weeks full pay/2 weeks at 90% too - but I don’t think that is clear in the policy.

I’m moving to a new job so I’m only able to return to work for 6 weeks as the new job starts at the end of August unfortunately.

I’m starting a new job 31/8/22 so technically will be returning to my current job for about 6 weeks.

Thank you for your advice. It did cross my mind that I would kind of be paying tax/pension contributions twice and wasn’t sure how that would work, so I will definitely clarify it.
Realistically we can probably afford £50 a month, we won’t really see the benefits of the higher pay with this new job until my youngest gets their free hours at nursery. Hopefully they will accept that figure.

1. Do not offer to repay until step 4. Ask them to give you a break down of the overpayment, I think it may be 12 weeks gross rather than net pay after SMP deducted. If not then you may need to challenge their figures because I read it the same as you.
2. Once you have an agreed overpayment figure ask them to calculate Annual Leave you are owed, you accrue during may leave including BH.
3. Technically you could give notice to end after the 6 weeks worked plus x weeks of annual leave so your jobs overlap. Point this out and the fact that you will be working half (6 weeks) of the required 12 weeks plus you have x weeks annual leave, in view of this could the reduce the overpayment by x % e.g. 6 weeks = 50%, 6 weeks + 2 weeks leave = 8 weeks so 66% etc.
4. Once you have an agreed figure then offer £50, be straight and say that is maximum you can afford. Note: be prepared that they may deduct it all from your final wage as normally your terms and conditions say they can recover overpayments in full from final salary. This is perfectly legal as you owe the money.

Note: if you took any annual leave after you ended your mat leave this is normally treated as returning to work and counts towards the 12 weeks required.

Also at step 3 mention about the impact on tax and NI etc. and how will they reimburse you.