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Overpaid wages

Discussion in 'General Discussion' started by Mr Joshua, 5 Nov 2020.

  1. Mr Joshua


    Joined: 18 Oct 2002

    Posts: 4,141

    Hello all,

    My other half has been overpaid her wages over a year. The amount per month wasn't much which is why it went unnoticed until we received a letter saying it would be reclaimed.

    No problem with the money being taken back, it was approximately £30 extra a month and as her wage can vary she didn't notice it.

    The amount owed is close to £500, her employers payroll department were quite demanding about how and when the amount should be repaid. She's outlined a payment plan to them so the full amount doesn't just disappear as we're heading towards Christmas.

    They wish to reclaim the full £500 but she would have paid tax and NI on that amount, is that right?

    I know some of you have been in a similar situation so just looking for advice.
  2. Dis86


    Joined: 23 Dec 2011

    Posts: 28,576

    Location: Northern England

    She would have paid tax and NI which will in turn be reduced as they reclaim the amount.
  3. Basher


    Joined: 18 Oct 2002

    Posts: 9,152

    Exactly this. You won't be any worse off once they've taken the cash back.

    Has this been spotted because it's the end of the financial year and they're trying to true-up to close out the year?
  4. wnb


    Joined: 27 Feb 2004

    Posts: 3,972

    She needs to sit down and have a meeting with her employer and agree a payment plan. They may want to take the full £500 but that would be deemed as unfair especially as it was their mistake ito begin with. I would suggest paying back £30 per month and see what they say.
  5. ukxenon


    Joined: 19 Jun 2009

    Posts: 959

  6. Basher


    Joined: 18 Oct 2002

    Posts: 9,152

    That is what is being suggested I think? I.e. to repay what was overpaid.
  7. Eurofighter

    Wise Guy

    Joined: 20 Mar 2014

    Posts: 2,199

    Quick, to Mexico!
  8. Psycho Sonny


    Joined: 21 Jun 2006

    Posts: 38,366

    Being overpaid wages and not declaring it to HR is a disciplinary offence in some places.

    Also if you don't have £500 in savings for emergencies like this what would you do if your car, boiler, TV, oven or shower broke?

    It's £250 each shouldn't be too hard to cough up. Then you have learned a valuable lesson to put money away just in case.
  9. rainbowGuy


    Joined: 19 Dec 2016

    Posts: 244

    maybe they do - but if they spent it on giving employers THEN they wont have the excess for emergencies ;)
  10. jrwagh333


    Joined: 20 Aug 2008

    Posts: 5,712

  11. Diddums


    Joined: 24 Oct 2012

    Posts: 21,116

    Location: London

    This. Don't let them bully you guys, if they try, tell them you'll contact ACAS for advice They'll either back down very quickly (clever move) or they'll let you contact ACAS (very stupid move) who will make life very, very difficult for your HR department.

    Companies like this deserve to go down the pan.
  12. Mr Joshua


    Joined: 18 Oct 2002

    Posts: 4,141

    Thanks very much for the responses,
    That must be it, the letter was along the lines that they were going to reclaim the whole amount but to set up a plan if you couldn't afford to do so. The subsequent phone call to payroll lead to her being told that the amount must be repaid by April and telling her how much would be removed from her wage.

    Again, no problem with repaying as mistakes happen but the attitude of the payroll department got up my nose.
  13. McGraw


    Joined: 16 Jan 2006

    Posts: 2,898

    Maybe they want to save their £500 for a real emergency...condescending much?

    If my employer had overpaid me by £500 they can have it back at a trickle, regardless of how much money I have in the bank.
  14. Psycho Sonny


    Joined: 21 Jun 2006

    Posts: 38,366

    I'd like to see what your employer has to say about that.

    Like I say it's usually a disciplinary offence not to report being overpaid.

    Also paying it back over time is an administrative nightmare. Especially if it straddles 2 tax periods.

    Maybe they could meet in the middle but £30 a month isn't on. That would take nearly 2 years to pay back.

    I'd say bare minimum £125 a month to have it paid by march. That's minimum. Any more and it straddles another tax year.
  15. "andy"


    Joined: 9 Jun 2005

    Posts: 13,909

    How would it take 2 years to repay an amount that was taken over 1 year if you plan to pay it back at the same rate It was taken :p

    Your point about it being a disciplinary matter to not report overpayment is true but it's near impossible to prove knowledge of on a small amount.

    Contact acas or your union if they won't let you repay it in a way that you deem fair.
  16. Pudney


    Joined: 6 Sep 2005

    Posts: 5,635

    Location: Essex

    Be careful if you decide to dispute the repayment. Legally an employer will generally have a right to reclaim an overpayment, and any decent employment contract should include a term to that effect. Psycho Sonny's comment about creating issues if it straddles two tax years is also correct, and any repayment plan should be fair to both parties.
  17. Psycho Sonny


    Joined: 21 Jun 2006

    Posts: 38,366

    Exactly for £500 it would be better off them writing it off than let you pay back £30 a month for 17 months.

    Absolute administrative nightmare it would cost them £500 to take the money that way.

    A lot of folk on here think it's like cash in hand, not surprised.
  18. [email protected]

    Wise Guy

    Joined: 5 Jul 2006

    Posts: 2,275

    That’s a bit rich coming from you, I doubt the business practices of you and your “mates” are squeaky clean based on your past posts around scamming the public and providing tips on how to defraud the furlough / eat out schemes ;)
  19. lurkio


    Joined: 20 May 2010

    Posts: 3,040

    Location: World

    This happened to me in the past, got over paid a few grand (think it was 2 or 3) , I paid them back over 3 months
    I just wanted to get it cleared up ASAP and before the end of the tax year, as that would complicate things a lot
    There are enough months left in the tax year that re-payment will not be too hard to handle
  20. thenewoc


    Joined: 9 Mar 2012

    Posts: 8,357

    Location: West Sussex, England

    If they went down a disciplinary route they'd also have to apply at least equal strike against those in payroll who's job it is to know more and check their work. If they didn't do that then it would seem they're dishing out discrimination and legal guidance should be sought.

    It doesn't seem unreasonable to cough up by end of March though.