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Original poster

Overpaid by ex employer

23 replies

bakingmummy21 · 03/05/2023 14:21

Looking for advice please, my DH recently got made redundant. He agreed to be paid for his 3 month’s notice plus severance and holiday owed. His contract ended at end April and in that months payroll he got paid a lump sum for April pay and the rest of the package. When it arrived 2 weeks ago it was slightly more than anticipated but we didn’t question it too much as assumed it was due to the accrued holiday and the tax calculations. I don’t think he yet has his P45.

His ex employer has today told him they have accidentally paid him his April salary twice and they want him to pay it back. This is entirely their error. As he is no longer employed by them is he legally obliged to pay it back? And how would they be able to get it back if he refuses to pay it back?

OP posts:

matthancockscareer · 03/05/2023 14:24

He needs to pay it back, it's not his money to keep it has been sent in error. Why would you think that he can keep it?
If you sent someone money in error would you let them keep it?

JuneOsborne · 03/05/2023 14:27

Well, ACAS give the impression that it won't be easy for them to get it back!

RagingWoke · 03/05/2023 14:28

They could take legal action to get it back, just pay it back and move on. It's an error, he was told when it was identified and if he refuses to return the overpayment it's theft.

roses2 · 03/05/2023 14:31

He needs to pay it back (this happened to me).

get a break down of the amount so he is sure the holiday is included
they need to sort it out with the tax and pension office so he isn't overpaying tax - he can't just pay back a lump sum via bank transfer otherwise he'll be double taxed. It needs to be done correctly.

prh47bridge · 03/05/2023 16:52

JuneOsborne · 03/05/2023 14:27

Well, ACAS give the impression that it won't be easy for them to get it back!

All that means is that, if OP's husband refuses to pay it back, they can take him to court and get a CCJ against him. As long as they can prove that they've paid him too much, they will be able to get it back. Much better to simply repay it than go to court and have your credit rating damaged.

Pearfacebananapoop · 03/05/2023 16:53

If it's only "slightly" more then how is that a full month? Ask them for a breakdown.

Ladybug14 · 03/05/2023 16:56

Pearfacebananapoop · 03/05/2023 16:53

If it's only "slightly" more then how is that a full month? Ask them for a breakdown.

This

I don't understand how a FULL month's salary paid in error is just slightly more than you were expecting

tailinthejam · 03/05/2023 16:56

Get him to ask them for an exact calculation of what he was actually owed, his payslip and his P45. Then look at what they paid him.

Until they can prove to him what he should have received, how is he to check which is the correct figure?

AlisonDonut · 03/05/2023 16:58

They need to set out what they actually paid, versus what they should have paid, taking into account what the tax should have been and he can refund the difference.
Otherwise he will have paid more tax and he probably won't get it back for a fair old while.

Original poster

bakingmummy21 · 03/05/2023 19:17

Because there’s also a lump sum of severance pay which isn’t taxed and accrued holiday pay which is taxed, plus the month’s pay he was expecting which is also taxed - and several other line items on his payslip which his ex employer has now shared which he isn’t sure what they are. He’s going ask for the full breakdown of what’s what - but given everything that was included it was close enough for him to believe it was the right amount.

OP posts:

Quveas · 03/05/2023 22:35

JuneOsborne · 03/05/2023 14:27

Well, ACAS give the impression that it won't be easy for them to get it back!

ACAS give a lot of wrong impressions. It will be extremely easy to get it back.

The first step is to ensure the calculations are correct. Ask the employer for the full workings of their payment / overpayment. If it is correct, then you are advised to make an offer to repay, assuming you can't repay it immediately. If you don't do that, then they can take you to court and start adding costs and fees. So got debt you them goes up. Plus your credit rating can take a battering. Few employers would refuse a reason5 offer because a court won't order you to pay what you don't have - but it will order you to pay, probably in installments.

Of course the employer might decide not to pursue it. But that's the risk you take - if they do the law is on their side.

NotABeliever · 03/05/2023 22:46

If it turns out he's been overpaid, there's no doubt he needs to pay it back. Why would he not?

Fofftwenty21 · 03/05/2023 22:50

He needs to pay it back. It happened to me before and there was a delay in them notifying me about it (had moved house) and they took legal action.

Danikm151 · 03/05/2023 22:55

It needs to be paid back.
I do these collections as part of my job.
You will have to pay the amount back then they will send an adjustment to HMRC to advise the correct amount you were “paid” in salary.
Some can be clawed back via tax and NI but the figure they give you is what needs to be paid.

I will always accept a reasonable offer. If they take legal action they can recoup additional costs plus interest

Aprilx · 04/05/2023 04:05

JuneOsborne · 03/05/2023 14:27

Well, ACAS give the impression that it won't be easy for them to get it back!

Why does that give you the impression that the employer cannot easily get the money back? A lot may choose not to, depending on amount, but if they decide they want to pursue it, they will definitely win and it won’t be that much effort.

TheKobayashiMaru · 04/05/2023 07:37

How much is 'slightly higher'? That will likely dictate the employers next move.

EatTheDamnCake · 04/05/2023 07:39

I think you're right to ask for clarification before he pays it back

I've had this a couple of times though and had to pay it back. Overpaid once by accident and another time had to pay back a school for pay over the holidays (I knew about this one though so was prepared)

PurpleSnake99 · 04/05/2023 07:41

This happened to me, apart from I noticed it straight away, called them and paid it back. They sent a generic letter (weirdly after I had paid it back!) that stated I could pay it back in a number of ways (including over 12 months). I hadn't spend it so just sent it back but this could be an option for you if the money is gone and they agree to it?

Deathmetal · 04/05/2023 07:46

As he is no longer employed by them is he legally obliged to pay it back?

What’s the thought process behind this question? Why would the law state if you are not employed, you don’t have to repay debt to the employer?

And how would they be able to get it back if he refuses to pay it back?

Just like any other debt, they can take him to court which will be recorded on his credit file if he doesn’t settle in advance

Margarita45 · 04/05/2023 07:54

I know my organisation we make contact 3 time to get payment back, then we pass it to a debt collectors who are definitely more tenacious than an employer.

I’d recommend paying it back less the tax/NI paid on it.

FishChipsMushyPeas · 04/05/2023 08:02

Of course he needs to pay it back, it's not his. They will take action to get it back if need be and surely if nothing else he'll need a reference from them in the future?

YellowDiamondInTheSky · 04/05/2023 08:06

I’m guessing if he was underpaid you would be demanding that the full amount is paid?

So an employer is perfectly entitled to demand and take any steps to recover any sums that it overpaid, including filing a court claim, which is very easy to do (ignore PP’s claim that it’s not easy to recover)

HappinessIsLove · 06/05/2023 20:52

If that happened in our company I would recalculate his payslip and what his Net salary should have been and advise him the difference is the amount that he needed to pay back into our bank.

My company is not the company that will pass it on to debt managers but others would.

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