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Months salary paid after leaving my job


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Hi Please help,

 

I worked for a company for 4 years. We parted company as they wanted to downgrade my position without any reason or reviews taken place.

 

After i left, in February 2015; I then received my regular salary on following month March. They are now (May) demanding I pay back all the sum within 5 days or face court action.

 

I have been home all this time and not found a job, nor on benefit. I have used the money to pay for my living.

 

I don't dispute the over-payment...

 

What options do I have? Id like to pay back when I get a job on a monthly basis, I don't want a CCJ. please advise.

 

Thanks.

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As this was their mistake, then I think they should be a little flexible. I am not sure how you would go about putting your suggestion forward though. Especially if you have no idea when you will likely be in paid work again.

 

I can see them countering any argument though in that you should possibly have been aware that the payment was made in error :(

 

 

I will flag your query for others on the site team.

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Please read up about estoppel.

 

If you did not realise that there was an overpayment then you will be able to reply on an estoppel.

If you did realise then the best you can do is to negotiate installments with them

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Thread moved to the appropriate forum.

 

Regards

 

Andy

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Estoppel is a very specific and rarely successful defence.

 

If you were paid in full for a month when you hadn't worked, you could not not have known that it was a payment made in error.

 

As others have said, try and agree a repayment plan with them.

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Agreed - there is a high hurdle to overcome in using estoppel as a defence. It is certainly a possibility, but if put before a court you would need to show that you genuinely believed entitlement to the money - for example having queried the payment, being led to believe that it was not an error and then having 'changed position' ie spent the money in good faith.

 

Agree affordable terms for repayment - they can't get blood out of a stone, so providing that your offer represents no less than you can afford after all priority outgoings are met, any court action would simply be a waste of their time and money.

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Thank you all for your advise and support; Yes, I will get in touch with them and discuss a payment plan. My concern is about them asking for full payment within 5 days, well 3 days now since the letter. Im sure that was a standard threat, they must be reasonable too an understand that I can't afford to pay the amount which is nearly £2k in one go....

 

Appreciate everyones input.

Thanks

P

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Ignore their timelines. They still have to follow procedure. And even if it does go to court they will have to take into account your financial circumstances

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  • 2 weeks later...

Hi all,

 

Finally have an agreement with company to pay monthly from this month end taking up-to 9 months. They have a clause which states that they will review my position every month in order to settle earlier if my financial situation improves. I.E get a job.

 

Again thx all, for your contribution, Im going to stick with the plan in place.

 

Regards

P

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