Overpaid for 5 Years - Could I be dismissed

[mrtoftheateam]

OK so i used to work for bank X on a shift pattern for which I received a %age uplift on my base salary.

 

Bank X was bought by Bank Y. Shortly before the takeover I stopped doing shift work and just did 9-5.

 

When i received my new contract from Bank Y, the same %age allowance was included in my remuneration.

 

Because the allowance was included in my new contract I did not think I was being overpaid.

 

My employer has now asked why i didn't tell them I was being overpaid, and I told them i thought it was part of my contract.

 

I understand an employers right to claim back overpaid wages (as long as it was my mistake, i knew I was being overpaid and i haven't spent it), but as it's in my contract would it even been an overpayment? And could they dismiss me? I didn't fraudulently claim, my pay is automatic each month based on my annual salary+benefits.

 

The contract does not define what the shift allowance is for, or when it would start/stop. I just presumed it was a benefit that had to be carried over by Bank Y when they bought bank X.

 

I am primarily worried about loosing my job, but if i do keep my job they may ask me to payback an amount that is equal to about 60% of my annual salary!

 

Please help

[andydd]

I think we would need to actually see he contract in finer detail.

 

But it does sound as if you didnt know then it would be hard to sack you for gross misconduct and you would have a claim for umnfair dismissal perhaps, often this might not be worth pursuing but in your case it could mean quite a bit of money.

 

It does sound that perhaps you were paid in line with your contract therefore it may be hard to justify claiming back overpaid monies, as this has gone on for so long, an element of estoppel may apply.

 

There may be other points to consider, for example if you were to move on you may not be confident on getting a good reference from your employer, this may cause difficulties if youve been there for 5 years.

[mrtoftheateam]

So i knew I was receiving the money, but I did not know it was an overpayment. I thought I was entitled to it because the allowance was in my contract.

[steampowered]

Well if your contract clearly says there is a shift allowance, its very difficult to see how there is an overpayment. Best to seek clarification from HR on this first.

 

Even if there was an overpayment it sounds like you would have a good case to refuse repayment on the grounds of estoppel.

[Grotesque]

Absolutely correct.

[mrtoftheateam]

Well if your contract clearly says there is a shift allowance, its very difficult to see how there is an overpayment. Best to seek clarification from HR on this first.

 

I guess because I dont do shifts? But as the contract came after i stopped doing shifts, I thought i was entitled too it.

 

I will look into estoppel more once I know what action the company will take. I'm just trying to keep my job firstly.

 

HR are looking at my contract now, and will let me know through my line manager what the next steps will be and what action they will take. It's either going to be 1) nothing except take the benefit away, 2) take the benefit away and recoup the money, 3) dismissal + recoup the money. If it's dismissal then I will go for unfair dismissal and ulso use the deffence of estoppel if they try and take the money back.

[steampowered]

Yes. Its very difficult to see how they could justify dismissing you for their screw up. I wouldn't get ahead of yourself just yet - wait and see what explanation they come up with for your contract.

[ericsbrother]

After this length of time it becomes part of your terms of employment by the acceptance by both parties. have you had any other changes to your employment terms in the last 5 years? Even very minor things will confirm that both parties have agreed that you work x hours for y pay and they cant now claim it back or say you were being dishonest in accepting it. 6 months to spot it maybe, without any other contractual changes like pay increases, pension contribution changes etc. If they do try and claw it back they will be leaving themselves open to a legal claim by you

[mrtoftheateam]

Pay rise and promotion in Feb 2014 (effective 1st April) which probably highlighted the point to HR. But before that I got a pay rise on 1st June 2010.

[ericsbrother]

Then that is the clincher, employer has accepted what you do for the money paid. there is no mention of shifts in your current (or past with this bank) terms so they cant and dont apply.

they are not entitled to even ask you to consider taking a pay cut or repaying the money.

[mrtoftheateam]

Good news - just heard that HR are closing the issue. No further action except for me to sign a new contract which doesn't include the shift allowance.

 

Thank you for all your responses - valuable information that thankfully on this occasion I do not need. Been at the company for 12 years now, here's to the next 12!

 

[Grotesque]

The Curse of CAG strikes again!!! lol