Overpaid for 2 years

[JackieJ]

Hi All,

 

I've just been advised that since dropping my hours by 1 hour a day (I work 3 days), 2 years ago, payroll have not adjusted my salary and therefore, I now have to repay 2 years worth of overpayment.

 

I didn't notice at the time, firstly because I didn't expect it to make much difference, and secondly, we recieved an annual increment the following month so I knew my salary would change, but didn't know what it would be.

 

Anyway, turns out to be considerably more than I thought and they have now reduced my pay to what it should be (fine) and hit me with a bill for just over £4000. I am obviously exploring alternatives to repaying this money, such as working extra hours etc but I heard that employers couldn't claim back over one financial year? Have no idea if this is true or not and wondered if this has any basis in fact?

 

Thanks all

 

Jackie

[pippadeee]

What's your hourly rate? Unless its £13/£14 per hour that £4k total sounds a tad on the high side.

 

Yes (unfortunately) they can claim back over one financial year.

 

Have they provided you with a full breakdown of how they came to this £4k calculation? If not, ask them to. They should only be trying to reclaim the net overpaid amount ie the amount you actually received in your pay after tax/NI had been deducted.

 

Secondly - in the last two years have you had cause to speak with payroll about your pay at all? For any (not necessarily related to this issue) reason at all?

[Bigredbus]

a) check your contract... any payback clause?

b) have you, and your employer, agreed that there has been an overpayment?

c) is the amount agreed?

d) how did the mistake arise?

e) negotiate an acceptable period for repayment (the minimum should be 2 years... the period during which they overpaid you)

f) Press your employer to consider accepting partial repayment... as the mistake is no fault of yours...

 

To clarify your position as per employers not being able to recover overpayments past a year, this is pure myth... Contact an employment lawyer for professional help and advice or ACAS/CAB

Edited February 5, 2010 by Bigredbus

[Uncertain]

I'm afraid the bottom line is they do have the right to claim back an accidental overpayment.

 

It would need to be over six years (five in Scotland) to be statute limited and therefore unenforceable.

 

However, like any debt they need to provide reasonable proof that the debt exists.

 

The fact that it is their mistake may be an useful "moral" lever but it is not a legal one.

 

Ultimately, if they took you to court, you would only be ordered to pay it back at a rate you could reasonably afford so there is no reason to do more than this.

 

You might also find that they would prefer to write some or all of this off, rather than have bad publicity, but you would need to be very careful indeed how you handled this!!

[JackieJ]

Thanks guys, I thought it sounded too good to be true! I have written to the payroll provider for a month by month breakdown showing me how much tax/NI and Pension I have overpaid as a result of this.

I have contacted a while ago them as they cocked up my maternity pay and told me I had been overpaid by £800 which I have only just finished paying back. I will have a look and see if they will write anything off as a gesture of goodwill but just wanted to get some facts! Thanks all - I'll let you know how I get on!

 

Jackie

[JackieJ]

Sorry for delay in updating but have discovered a bit of info that might, just might, be useful to other people in this situation.

 

I've discovered that this overpayment malarkey appears to have happened to a load of people in our place and has only just been discovered by the payroll provider. Someone has discovered a case where a female employee of Barclays was overpaid (by an astonishing amount, I have to say) and was successful at an ET in managing to remain on the overpaid salary and not having to repay the overpaid amount (which was £20,000!!).

Here's a link

Employee entitled to retain higher salary - Steeles Law

Now I know this doesn't constitute a change in law but it's a useful case don't you think and it's for a heck of a lot more money than in my case!

I've passed the information onto my union rep to see if there is anything collective all the overpaid people can do to try and address this issue but any suggestions you lot may have would be gratefully recieved!

 

PS Also asked if I could up my hours back by 3 a week and was told no. Organisation doesn't have the budget. Funnily enough, neither do I!