I left my employment in late 2006 parting on poor terms. My employer claimed that I had misled them in order to receive monies I wasnt entitled to while I felt that they were well aware of my circumstances.

Today (11 months later not having heard a thing for 9 months) I received a solicitors letter claiming back a sum of money which they paid me over a period of two years. They are also threatening to increase the sum by several thousand due to interest and also reserving the right to report this matter to the police. They have given me 7 days to pay the full amount which is tens of thousands of pounds.

I have reviewed all my payslips for the period they quote in the letter and what they claim I owe and what they actually paid me vary by over 15k.

The letter is full of 'mays' and 'ifs' and seems to be designed to scare me as much as it is to get any money. The company is a large company with its own legal dept and I think this has been farmed out in order to distance themselves from it as it doesnt match their caring sharing corporate image.

My main question is interest aside if I choose to pay can they claim for more money than they actually paid me. Also if they overpaid me and the sum was taxed whats the position with reclaiming the tax. Is this something I can do or do they have to do it.

Have spoken to union and will get independent legal advice as well but would appreciate any advice.

Thanks

What were the circumstances of your overpayment?

I was being paid an allowance based on location and had been for 3 years. We then moved to a different location ( due to emergency circumstances) at which point a lump sum should have been paid and the monthly allowances stoppped.

This didnt happen. Although I spoke to HR at the time there is no record on file of us switching location and the whole arrangement was fairly informal.

I am not disputing that the payments wernt in line with policy. Even for the 3 years they paid and have no issue with the payments were not in line with policy as everything was agreed on a nod and a handshake.

I never signed anything or was asked to sign anything.

I thought it had pretty much gone away as it was much there screw up as mine. Last contact I had from them was 11 months ago confirming my resignation and now this turns up out the blue.

Hope this answers your question.

ukjoel25,

Did you inform HR in writing that you had changed your address?

From what I can make out it would seem that although your employers continued paying you the allowance, albeit in error, you should have informed them that they were overpaying and kept the money to one side in order to repay. Unless you can give me a bit more information -it seems they may have a case for asking for the money back.