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I owe money? Can I leave?

9 replies

Mumlife96 · 25/10/2024 22:09

the Company I worked for was going through a merger with another company before I was due to go on maternity leave, I was put on the new company’s maternity as I went on maternity leave end of January and our new contracts had started

I have been back at work 4 weeks and I work part time (worked part time before maternity leave) and have to work at the company 6 months before I can leave without oweing them maternity pay

I’ve been thinking of leaving after the 6 months as money has been tight. My husband works 2 jobs so that I could work part time while we had our children but bless him, he’s been doing 2 jobs for 3 years and I can tell how tired he gets and I want to help more financially

but at work I’ve received an email stating that they overpaid me on maternity leave and I owe them £800?

I do not believe I do, I was paid around what I was expecting each month so I’ve asked them for the breakdown of how they’ve come to that conclusion

what happens with me wanting to leave if they are saying I owe them money? What happens if I want to leave before the 6 month period and then do actually owe them money?

I feel so unhappy being back, I don’t like the new company and was already stressed about money before them telling me I apparently owe them a large sum?

any advice or help?

Sorry it’s a long post I just wanted to get as much info as possible in there

OP posts:
SausageinaBun · 25/10/2024 22:48

It's pretty hard to say what will happen. Some companies won't chase a few £k from ex employees, thry might send a few emails, but decide that legal action isn't worth it. Others will might not let it go on principle or because they need every penny.

It also depends on your role a bit. If you work in something like finance and have to look squeaky clean, then you'd be best off paying it back. A new employer might not warm to you if you've not paid back what you owe to your last one.

You may have some holiday pay due to you, so you could offset that.

MrsMoastyToasty · 25/10/2024 22:58

If it is proved you owe them money then offer to pay it back in installments and to recalculate your pension, tax and national insurance contributions . That will probably put them off for being too much hassle!

Gazelda · 25/10/2024 23:09

Like @SausageinaBun, I was wondering whether you'll have any holiday you could offset.

Or, and this may sound perverse, could you grit your teeth and up your hours temporarily to pay off the £800 within the six months and then leave for a better paid position?

I hope they'll come back with their calculations and you'll be able to show it's a mistake. Or negotiate a reduced amount.

Shallana · 25/10/2024 23:44

Generally they will deduct it from your final pay. If you can leave with relatively little notice soon after payday, then they're unlikely to be able to recoup it. They may chase you for payment but it'a highly unlikely they'll follow through with any kind of formal action.

EmmaMaria · 26/10/2024 11:24

Shallana · 25/10/2024 23:44

Generally they will deduct it from your final pay. If you can leave with relatively little notice soon after payday, then they're unlikely to be able to recoup it. They may chase you for payment but it'a highly unlikely they'll follow through with any kind of formal action.

...it'a highly unlikely they'll follow through with any kind of formal action.

Well many employers will. There is no eveidence the OP's employer won't, so it's a bit irresponsible saying that it's highly unlikley they will pursue a debt. The OP needs to know that if they owe the company money, the employer it within their legal rights to pursue repayment, which may mean threatening letters, debt collectors on the doorstep, or court action (which may damage their credit rating). Those things may happen or not - nobody can tell them how likely that is.

Shallana · 26/10/2024 12:25

EmmaMaria · 26/10/2024 11:24

...it'a highly unlikely they'll follow through with any kind of formal action.

Well many employers will. There is no eveidence the OP's employer won't, so it's a bit irresponsible saying that it's highly unlikley they will pursue a debt. The OP needs to know that if they owe the company money, the employer it within their legal rights to pursue repayment, which may mean threatening letters, debt collectors on the doorstep, or court action (which may damage their credit rating). Those things may happen or not - nobody can tell them how likely that is.

I work in HR consultancy and have come across this situation many many times, I've yet to come across a client who have pursued an overpayment of this size through the courts. Yes, they may send a few threatening letters, but it simpy isn't worth the management time and cost of pursuing it through the courts, so I stick with opinion that it's highly unlikely they'll take this any further.

Doggymummar · 26/10/2024 12:28

Surely they will deduct it from your final months payment

JC03745 · 26/10/2024 12:37

Is it an enhanced maternity pay they are claiming they overpaid, or just the government statutory pay? Do you have a union? Are you wanting a reference from them?
I agree with asking for a breakdown of how THEY have made the error! If its correct, I'd ask for a payment plan of say £200 a month, so its paid off before you leave, with the correct tax/NI calculations etc adjusted. Can you work extra hours to help your DH and/or pay this off- IF indeed its correct?

Maybe I missed this, but is you plan to leave this company and then work full time somewhere else?

EmmaMaria · 26/10/2024 13:04

Shallana · 26/10/2024 12:25

I work in HR consultancy and have come across this situation many many times, I've yet to come across a client who have pursued an overpayment of this size through the courts. Yes, they may send a few threatening letters, but it simpy isn't worth the management time and cost of pursuing it through the courts, so I stick with opinion that it's highly unlikely they'll take this any further.

And I worked for a union and can tell you how many times I have heard of people being pursued for money they owe. Anecdotal stories are fun, but uncertain things to base your bets on. The only fair and reasonable thing to do is to tell people what the risks are and let them decide for themselves whether they want to take that risk. Not to tell them that "it likley won't happen" or even that "it likely will happen". Neither of us know what this particular employer will do. Not do we know what impactr, for example, debt collectors and threatening letters will have on any one person - some will shrug it off, others will be in a high state of anxiety. It's only fair they know what might happen.

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