Redundancy overpayment - HELP NEEDED!

[mollypepperpot]

Hi,

I was recently made redundant (about 2 months ago). I've now received a letter from my former employer advising that they overpaid my redundancy payment and they want over £1500 within 7 days. I've already used the money on bills and paying off debts etc. I'm really worried and want to know if I have to pay them back this money as they made the mistake and I don't have any money to pay them.:-?

[MARTIN3030]

Welcome to the site.

They are of course entitled to ask for it back,given you was not entitled to it.

Will move your thread into Employment issues.

[flyingdoc]

I personally would write to them, telling them that when you got your money, you thought, in good faith that you were entitled to it and as you had just been made redundant, you used it to pay bills and such in preparation to having a much reduced income.

 

You would also like to see a detailed breakdown of how the overpayment occurred and the exact figures involved, and the reason that it took so long for them to inform you that you had been overpaid.

As you are now unemployed and have no (or low) income you do not have the money to pay a lump sum back and would have to arrange a payment plan to reimburse any monies owed.

 

As you have left their employ this would become a civil debt which they would have to get enforced by a court to collect.

If you can come to some arrangement between yourselves then they may not take this step, and even if they go to court, a reasonable offer from you will probably be rubber stamped by the court. the court will only make you pay what they think you can afford.

 

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