I have been overpaid on a number of occassions around £25 per time . I have complained about it and asked them to make sure they do not do this as they deduct the amount out of the blue some time later.
They have just deducted money that they overpaid over two years ago. Shouldn't they only be allowed to go back in the current financial tax year ?
2007-02-12 10:37:15 · 5 answers · asked by dont know much 5 in Business & Finance ➔ Taxes ➔ United Kingdom
If your employer overpays you (for example they pay you twice for the same period of work), they are likely to recover the overpayment by making deductions from your wages. In these circumstances, you are not protected by the Employment Rights Act 1996, in relation to unlawful deductions from wages.
If your employer makes deduction(s) to recover an overpayment without your agreement, they will be in breach of contract. This is because your employer will not have paid you the agreed wage for the relevant period. However, there is little point arguing this at court, unless you can argue that points (a) to (c) below apply.
(a) your employer gave you the impression that the payment was correct.
(b) you could not have reasonably realised that there had been an overpayment.
(c) you have “changed your position” as a result of receiving the overpayment. This may include having made a financial commitment that you otherwise wouldn’t have made so that if you were forced to pay the money back you would be in a worse position than if the overpayment had not been made.
Whilst you could try and argue that you should not be required to repay the overpayment due to a change in position it is a complex area of law and will only rarely succeed. This is because if you request damages for breach of contract (ie. non payment of your full wage) your employer can counter-claim that they are owed the amount of overpayment.
2007-02-12 10:56:35 · answer #1 · answered by mathewuk 1 · 0⤊ 0⤋
Your employer does have a responsibility to pay you the correct amount.
If you have told them of their mistakes, make sure you do this in writing so that you have an audit trail. It would also be advisable to pay them back by cheque.
They should reclaim it over the same amount of time that they overpaid you. i.e. if they overpaid you 2 months in a row, then they should take the same amount back each month over 2 months so that you aren't hit by it in one month.
You may also want to contact your union, if you have one, to complain as they may be aware of other instances of the same mistakes.
2007-02-12 18:56:36 · answer #2 · answered by MPatrinos 3 · 0⤊ 0⤋
In short YES they can reclaim over payments providing they can show it was a genuine mistake. Not sure about time limit?, but 2 yrs is a long time to try and claim back and i would certainly challenge that. Are you a member of a Trade Union? if not, try citizens advice.
2007-02-12 18:54:51 · answer #3 · answered by newciderman 6 · 0⤊ 0⤋
Normally it's in your terms and conditions that overpayments can been reclaimed.
2007-02-14 16:27:58 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Who cares just keep it to yourself, free money.
2007-02-12 18:46:15 · answer #5 · answered by Anonymous · 0⤊ 0⤋