The company that a friend of mine works for recently paid his annual bonus directly into his bank account alongside his december salary as expected. He duly used the money to pay off a credit card debt. The company then said that the payments were made for the incorrect amounts and that they must all be transferred back before they are paid again correctly (and probably smaller). As the money cannot be paid back, where does he stand legally and morally?
2006-12-21 05:50:55 · 8 answers · asked by DS12221 3 in Business & Finance ➔ Credit
Remember - as the money was used to pay off a credit card debt it is not availabe to be repayed. We are talking 6 months salary here.
2006-12-21 05:58:36 · update #1
Legally he is obliged to pay it back. Morally, the company who made the blunder should treat him sympathetically.
2006-12-21 05:55:45 · answer #1 · answered by breedgemh_101 5 · 0⤊ 0⤋
He must pay the money back or ask if he can have a draw on the next commission because of the circumstances. I would back peddle and let the credit card company know the situation as well.
He is only owed the correct amount and should not take the mistaken amount as free money- that is stealing.
2006-12-21 05:56:42 · answer #2 · answered by Northville 2 · 0⤊ 0⤋
In a situation like this, where your friend is presumably not responsible for the incorrect payments, the company will unlikely be able to prevail in a lawsuit, although it probably will not even try.
Morally, he should return the money that isn't his. He can probably work something out with the employer about the terms of repayment.
Practically, he should return the money. The company can reduce future paychecks to make up for its loss and refusal to cooperate will likely hurt his career.
2006-12-21 05:58:24 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Thank yourself,its NOT a DD. You can of course make a STOP PAYMENT request to your Banker.Recently a Higher Court has ruled out that check bouncing as a offence is outside the purview as it would be applied in case of a Corporate for Individual's or Propreitary firms.If you think your case is Fair & Square you can certainly contend your case if the counterparty dares to sue you in a Court of Law.Normally any Check is valid for 6months from date of issue in this Country.
2016-05-23 05:48:34 · answer #4 · answered by ? 4 · 0⤊ 0⤋
He will have to pay it back. However companies that make this mistake are commonly accepted as being foolish. The company will try to put pressure on getting it back, but at the same time wont expect it back in a hurry.
2006-12-21 06:48:57 · answer #5 · answered by JOHN Y 2 · 0⤊ 0⤋
He must pay the money back but if I were him I would go and talk to the people in the payroll division and ask to pay it back in installments.
Since they made the mistake they should be agreeable to him making installment payments.
2006-12-21 05:59:45 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I'm sure that buried deep in the employee handbook it says that the company has the right to take back incorrect payments. I hope they give him slack in repaying it especially if he didn't know that the amount was wrong.
2006-12-21 05:59:08 · answer #7 · answered by IT Pro 6 · 0⤊ 1⤋
any overpayment in wages has to be paid back im afraid
2006-12-21 06:00:23 · answer #8 · answered by man with the golden gun 4 · 0⤊ 0⤋