Advice regarding overpayment at work

FinglisHobbit · 13 Jun 2013 at 10:19

Hi folks,

Just after a bit of advice regarding a work issue.

A friend’s employers told her last week she has been overpaid since going part time 6 months ago. Since then she has been waiting for details on the overpayment (how much, what repayments/deductions are to be paid, etc), but has so far had nothing and her employers have also withheld last month’s pay. Now her employers are awful (rarely do anything by the book) and she hasn’t yet had a written contract stipulating working hours/pay, etc (she’s worked for them over a year now).

She’ll be contacting ACAS/CAB when she’s heard back from her employers regarding the overpayments (to check what they’re going to do is above board). Just wondered if anyone has been in a similar situation, or if anyone could offer advice on what her employers should be doing? I'm presuming tax deductions will need to be corrected if wages have been overpaid?

Thanks

[FnG]magnolia · 13 Jun 2013 at 10:25

Has she been overpaid?

e : sorry, misread the post. Ignore.

mothermachine · 13 Jun 2013 at 10:26

She took the job with no contract? Contracts are there for both parties, not just the employer. This was a foolish move. I can't offer any advice but maybe someone else can.

FinglisHobbit · 13 Jun 2013 at 11:22

Yep, I agree.

I think she was chasing the contract for months, and her employer got quite obnoxious so she backed down.

DanielMMS · 13 Jun 2013 at 11:40

I suggest she does not wait before going to CAB or getting other professional advice. The employer is potentially acting unlawfully. In the first instance, she should have received at least some form of written statement of T&C within 2 months of starting. Secondly, they cannot simply withhold a month's salary. Thirdly, whilst your friend cannot stop them recovering an overpayment, it must be done in a fair and reasonable manner - the employer is quite clearly acting unreasonably in this instance.

peterwalkley · 13 Jun 2013 at 11:43

If there's nothing in writing on pay rates, how can they claim she's been overpaid.

Holding the last month's pay back without giving her any indication of the amounts involved is very naughty. She needs to demand their calculations in writing and give them 5 working days to do it. Contacting CAB or a solicitor if she's not happy with their figures.

She also needs to be prepared to look for another job. They sound too incompetent to work for, or are having trouble meeting the payroll and using this dodgy claim to hide it.

pepsilol · 13 Jun 2013 at 11:47

Edit - no contract lol

FinglisHobbit · 13 Jun 2013 at 12:01

peterwalkley said:
She also needs to be prepared to look for another job. They sound too incompetent to work for, or are having trouble meeting the payroll and using this dodgy claim to hide it.

Incompetent isn't the word! Seems like they like to beat their employers down mentally. ACAS have been involved a few times (for previous employers). She's been looking for other employment for months, but hasn't found anything yet. I know she was going to quit just before going P/T, but wouldn't be able to claim JSA for walking out of a job.

Thanks for the advice

mattyfez · 13 Jun 2013 at 12:19

I'm fairly sure in genuine case of overpayment it is deducted over a few pay checks so as not to cause any financial strain, after all, it's not the employees fault..

MrMoonX · 13 Jun 2013 at 13:11

They can't withhold wages in an overpayment, but she does have to pay it back, but can setup a payment plan, I was overplayed a small amount for 6 years, After union advice said I wasn't obliged to pay it back in a lump sum but I would pay it back over six years matching the overpayment amount per month, took ages but it caused no end of pain for the employer

ubern00b · 13 Jun 2013 at 13:45

As everyone else has said. I was overpaid because the Finance department are a bunch of monkeys but since it is legally their money I had to pay it back (I was unaware I was being overpaid). This was done quite amicably however. I had a meeting with HR and was asked what I could afford to pay back each month and we came to an agreement to pay it back over the course of a year.

They simply cannot withhold pay and put you in a serious predicament.

httk · 13 Jun 2013 at 14:25

So, if your friend did have a contract, it would probably say they could claw back money as and when they wanted.

She should contact CAB/lawyer immediately, but to be honest, she should go and speak to finance today and find out how much she was supposedly overpaid. Or pick up the phone.

The best thing she could probably do is just quit, that's the only way to stop them clawing back money, because effectively she's working for free at the moment, as they're not paying her. And with no contract, they can keep doing that.

She should contact CAB and look for new job now, today.

Edit: I'd also consider small claims court to get some money back, unless they can evidence the overpayment, which seems unlikely in the absence of contract. But if she has an email or letter saying how much she will be paid, then that would indicate who is in the right.

ubern00b · 13 Jun 2013 at 15:58

httk said:
The best thing she could probably do is just quit, that's the only way to stop them clawing back money, because effectively she's working for free at the moment, as they're not paying her. And with no contract, they can keep doing that.

Legally she owes the money so even if she quit they could/would reclaim the funds.