MOD want 2013 redundancy compensation back - Limitations Act?

[sazzer1]

I was awarded a lump sum compensation payment for redundancy in June 2013 which I accepted and used to pay off part of my mortgage. However, I was also in the process of taking my employer (MOD) to tribunal as I was made redundant whilst pregnant and there were other jobs they could have moved me into. I never intended to return to work having been treated very badly and was seeking damages. However, as part of an out of court settlement, I was offered a new job which I accepted in Nov 13. Part of the settlement was that I had to repay the redundancy lump which I agreed to albeit on a repayment plan as the capital no longer existed. I was told that I would have a 3 months grace period and the recovery process would automatically kick in and recover the money. However,  the process was never instigated from the MOD side and when I queried this, I was told by HR that any monies would be recovered from my terminal benefits in 2027. This seemed perfectly fair.

 

Yesterday (29 Feb 20), I received a letter from the MOD stating they required full repayment on the lump sum immediately. Obviously, after the initial panic, I googled the legality of trying to take back money I did not have only to come across the Limitations Act 1981 which seems to suggest that the acceptance of my offer to return to work in Nov 13 formed a simple contract and my repaying the lump sum was part of that contract. The simple contract can only be enforced within 6 years and so there are no legal grounds for the monies to be recovered 6 years and 4 months later. I am totally confused and need to go back to the MOD to tell them I cannot afford to repay the money - should I use the limitations act and ask for the money to be written off?? Should I offer a percentage of the debt (I have about 10% which I could give them) Any help appreciated. 

Edited March 1, 2020 by sazzer1

[stu007]

Hi

 

I assume it was an Employment Tribunal that the agreement was made with the MOD could you clarify?

 

Have they threatened any further action by way of court proceedings in their letter to you (29 Feb 20)?

 

Are you still employed by the MOD if not when were you discharged (I know this was from 2013 the agreement but could you clarify)?

 

If you are going to contact the MOD if by phone (only do so if you can record the call) and follow it up in writing but I would advise putting anything in writing (get free proof of posting from the post office) but at present I would hold off on offering what you have suggested in your post. (keep copies of everything you need a good paper trail)

 

What I would also advise is you need to send the MOD a Subject Access Request (SAR) they do have their own form to complete:
https://www.gov.uk/government/publications/mod-subject-access-request-form

 

Note: with the MOD SAR make sure and put irrespective if you ask for specific dates write 'ALL DATA' this covers whatever format they hold that data in whether it be phonecalls, emails, written etc.

 

Please be patient I am sure others will be along to assist.

[sazzer1]

Morning, there was a COT 3 issued but we settled prior to tribunal. No legal action threatened, just a very bland letter. You us xx please send a cheque. Still employed by MOD, no plan to leave. Will not phone, you are quite right, will send letter. Thank you for your response.

[ericsbrother]

well, you have an agreement that they will take the money from you lump sum at retirement.

this means that mitigation comes into play, they made an offer that you accepted and have carried on as though this was indeed the case. If they now want the money back as a lump sum they will have to go to court and you can then explain the mitigation and they will be told to either accept this or the debt is voided.

 

the debt is still there just their choices of how they collect are now limited

[stu007]

Hi

 

Thanks for the further information.

 

Exactly what does the Agreement you came to at the time state?

 

I understand you were told by HR that the monies would be recovered from your terminal benefits in 2027 (do you have this in writing) importantly does it state that in the Agreement reached at the time?

 

 

 

 

[sazzer1]

Agreement states lump sum and any other benefits associated with the claim to be repayed.

No time limit or specific method of repayment is mentioned. 

 

Nothing from HR in writing about terminal benefits but I do have emails asking about making a repayment plan to which I was told wait until other pay issues are resolved.

This was at the time of my reinstatement. 

 

Just dug out COT 3 and emails.

Was left open as part of settlement and MOD were supposed to make recovery arrangements.