Being overpaid in error - if employers suss it can they make me pay it back

[handlemecarefully]

Before I went on mat leave I requested that I return to a part time job, and I also asked for a less responsible position acknowledging that I was naturally prepared to take the trade off of a reduced salary.

So it was agreed that for lesser responsibility my salary would reduce by £8,000 pro rata. I was okay with this but thought it a bit steep (was expecting a £5K drop)

Anyway - when I returned in January my line manager completed a variation form for me stating that I would be reducing from 37 to 30 hours per week and also taking a drop in salary of -£8K pro rata. She forwarded this to Payroll who have actioned the 30 hours bit, but neglected to reduce my salary.

Having picked up on this after my first pay cheque I rang Payroll and notified them of this ommission...however since they failed to act on this too, my attitude since then has been to take the money and run! I've been overpaid now for 10 months.

I know some of you won't approve of this and I'm not asking you too. However I just wondered if anybody knows whether if and when my payroll department ever identify their mistake they can oblige me to pay the whole lot back?

Yes they can and will so don't spend it! Mine paid me normally for the first month of mat leave and I had to pay it back.

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Oooops too late!

It will be a struggle to pay it back.

I was rather hoping that if they have made an error in your pay which is sustained and has gone on for an awful long time, it almost becomes contracturally your pay rate by default? But perhaps not!

on a similar note, we were paid twice by our mortgage company when we were given a refund. This was 18 months ago. Could they do anything about it now? Sorry to change the subject!!

Yes they can. This happened to a girl at work and although she had only been overpaid for 1 month, she got into a lot of trouble. HR kicked up a stink and said it was her responsibility to check that she was paid the right amount. I wouldn't even notice as I never check my payslip and I don't even know how much I am earning each month....

This happened to my sister (she works in the civil service) and has been overpaid now for 3years. She has told her payroll numerous times but they are still not doing anything about it ! However, they have asked other employees who have been overpaid for the money back. My sister said that a lot of her co-workers had spent it by that time so the civil service worked out that they could pay it back a small amount over a number of years. However, my sister said that she does know of some who have since left the service so it would seem that they managed to walk away with a nice 'bonus' !

littlerach - They probably could. However there was/is a loophole about money paid into an overdrawn account. eg if you were £500 OD and were accidentally paid £200 they couldn't claim it back. Very complicated rules though.

Metrobaby,

Perhaps it would be better for me to resign now then before 'discovery' !

Ooo err - don't think I'm going to come clean with my employers, after all with +2000 people on the payroll they may never discover it. But will work out how much I owe them and try to put aside some money on a just in case basis

Yes they can ask you to pay it back but you need to agree what terms. It could be a certain amount a month. They cannot take it all back at once.

is there a time limit after which you could claim the money as being yours? We purposely haven't spent it and put it into a separate account. Our building society are so crap about everything, they constantly get our name wrong, although we have corrected them in writing thre times, and recently sent us a letter about interest rates rising to 8.5% etc etc, so we keep hoping they won't realise!!

I've been living in a fools paradise thinking I could get away with it

Will have to talk to dh tonight!

HMC - in the case of my sister's workplace a lot of people are paying something small back over a number of years - eg 1 worker is paying back £20 a month over 3 years. The civil service aren't even claiming back the interest. In my sisters case (she was still being paid her salary during her entire mat leave) - they have put it in a savings account and waiting for the day they get a demand to pay it back.

I work in a payroll department - yes it will coem to light eventually, but it may be a long time. I had a lady who had reduced her hours from 30 to 20, 4 years ago and we had never been notified. When she was told about the overpayment, she denied all knowledge. You would be amamzed at how many people never even open their payslips. They can ask you to pay back anything but you would be able to agree terms. One woman received a lump sum of 14k in error, was told a week after payday and informed us that she couldn't pay it back as she had booked a new conservatory! she is still paying back on installments - nice interest free loan!
I would do either one of two things, phone the payroll mananger and tell him that this has just come to your attention and you would like to discuss repayment terms, bear in mind that your salary will drop as well when you are offering this. Or set up a standing order to an account for the amount each month and keep quiet. when they find it, set up a standing order from that account to them. You will of course ge t the interest!
If you want to e mail me with details of your salary, what rate national insurance you pay and your tax code, I coudl work out exact figures for you.
HTH

lilibet,

what a kind offer! - if you don't mind I will (but it will have to be when I get home)