Overpaid: Legal Rights?
Discussion
I got overpaid today, due to being paid on my old contract. On my old contract, I was paid a lower rate, but weekends were overtime, whereas now I get a higher rate, but weekends are standard pay. Having worked the weekend, I earnt more than I would have with the new contract (I didn't get a choice in changing contract).
Will my employer try to claim it back? Are they allowed to (bearing in mind its HR's fault)? One of my friends had this happen, and they put a block on the employer drawing it out of their account again. Is this a good idea?
I don't want to end up with them suddenly taking money out of my account, and me end up being overdrawn :( Serious/funny replies please, but no useless ones :p
Will my employer try to claim it back? Are they allowed to (bearing in mind its HR's fault)? One of my friends had this happen, and they put a block on the employer drawing it out of their account again. Is this a good idea?
I don't want to end up with them suddenly taking money out of my account, and me end up being overdrawn :( Serious/funny replies please, but no useless ones :p
if your "aware" of being over paid then you could be liable for obtaining a money transfer by deception (s15a theft act 1968?) or s24a dishonestly retaining wrongful credits.
legally you "should" divest yourself of the wrongful credit in a "reasonable" timeframe. You wont be liable for either of the offences if you didnt know about the transfer, so putting a block on the account would not be wise.
So your wisest response should be: "Overpayment? What overpayment"?!...
>> Edited by princeperch on Friday 24th June 11:26
legally you "should" divest yourself of the wrongful credit in a "reasonable" timeframe. You wont be liable for either of the offences if you didnt know about the transfer, so putting a block on the account would not be wise.
So your wisest response should be: "Overpayment? What overpayment"?!...
>> Edited by princeperch on Friday 24th June 11:26
You will probably have in your contract or employee handbook something like: "If you are overpaid you should notify the person who pays the wages. The overpayment will be deducted from the following payment but if this would cause hardship alternative arrangements maybe made. Failure to report an overpayment will result in disciplinary action."
So reporting it is probably a good idea but check your contract/handbook.
So reporting it is probably a good idea but check your contract/handbook.
The logical answer would be that they work out what you should have been paid, and deduct the difference from your next payment.
However, I am not your employer and they may not be that logical.
I would suggest you don't spend the money you're not entitled to, because when/if they do realise their mistake, they'll want their money back.
However, I am not your employer and they may not be that logical.
I would suggest you don't spend the money you're not entitled to, because when/if they do realise their mistake, they'll want their money back.
If you are aware of the mistake and know that you shouldn't have been paid the extra, then you should pay it back. There is an argument that it is otherwise theft if you start spending it or otherwise appropriate it.
We had something similar happen recently - HR inadvertently put two extra noughts on the end of the payroll figure. A group of nurses were paid a lot more than they were expecting that month!!! but all was recoevered eventually.
We had something similar happen recently - HR inadvertently put two extra noughts on the end of the payroll figure. A group of nurses were paid a lot more than they were expecting that month!!! but all was recoevered eventually.
I wasn't intending to spend the money, but I wouldnt be happy if they just took it out of the account again. Thing is, I work through and agency, and so this is a contract issue between my employer (Motorola), and my agency (Manpower). Is there a legal time period before their claim becomes nullified? The payment isnt so much overpaid, more just mispaid, as it would be correct for the old contract. I'll just ignore it for now until somethings raised, I'll pay the money back when they want it.
They will likely pick it up and work out a repayment scheme - lumpsum if you can afford it or an adjustment over a period of time.
My wife recently carried out a disciplinary hearing against someone who went part-time & payroll hadn't made the right adjustments. The person was claiming they didn't notice the £1k p/m extra (doubtful as it was 1/3 of their take home pay). They didn't want to give it back although it contravened contractual policies, and wanted to go to tribunal, despite being told (by their legal advisor) that they had no leg to stand on.
End result was that the employee was dismissed for breach of contract & no further action taken as it would look bad for large firm to take someone to court.
Either way, the best policy is honesty imo.
My wife recently carried out a disciplinary hearing against someone who went part-time & payroll hadn't made the right adjustments. The person was claiming they didn't notice the £1k p/m extra (doubtful as it was 1/3 of their take home pay). They didn't want to give it back although it contravened contractual policies, and wanted to go to tribunal, despite being told (by their legal advisor) that they had no leg to stand on.
End result was that the employee was dismissed for breach of contract & no further action taken as it would look bad for large firm to take someone to court.
Either way, the best policy is honesty imo.
When I started my new job I got paid for 1 1/2 months in the 1st pay packet, which was correct and then again in the 2nd a month later.
Noticed this two days after the funds arrived in my account and told the boss straight away. Don't worry he said, call it a bonus and I'll make sure the accountants get it right next time.
Honesty is the best policy, although I'd be amazed if they don't ask for it back one way or another.
Noticed this two days after the funds arrived in my account and told the boss straight away. Don't worry he said, call it a bonus and I'll make sure the accountants get it right next time.
Honesty is the best policy, although I'd be amazed if they don't ask for it back one way or another.
As a youn-un about aged about 13, (some 20 years ago now,) I got overpaid by about a £5 in cash. (chicken/sheep/hay/gardening/any job farm hand)
Took it straight back - still feel pleased I did the right thing.
Funny thing was, a year or so later, I went on hols with my parents for 2 weeks and the Farmer fully paid me for the normal after school hrs I worked! always had a job there whilst I was at school, of if needed more work. Got lots of other benefits by doing the decent thing - bbq invites, boat trips, farmers daugher etc
We are still good friends with the old farmer some 20 yrs later.
Maybe different with a big firm.
(perhaps not the farmers daughter bit)
Took it straight back - still feel pleased I did the right thing.
Funny thing was, a year or so later, I went on hols with my parents for 2 weeks and the Farmer fully paid me for the normal after school hrs I worked! always had a job there whilst I was at school, of if needed more work. Got lots of other benefits by doing the decent thing - bbq invites, boat trips, farmers daugher etc
We are still good friends with the old farmer some 20 yrs later.
Maybe different with a big firm.
(perhaps not the farmers daughter bit)
I was overpaid £5k by my agency about 6 weeks ago. I gave it a couple of days to see if they contacted me about it (they didn't) and then I emailed all the details and phoned them twice to let them know.
To date the money is still sitting in my account earning interest (not much but a couple of pints worth!).
I reckon I'll just leave it there for a few more weeks and maybe remind them again if they don't contact me. But there's only so much you can do to get people to accept money from you!
To date the money is still sitting in my account earning interest (not much but a couple of pints worth!).
I reckon I'll just leave it there for a few more weeks and maybe remind them again if they don't contact me. But there's only so much you can do to get people to accept money from you!
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