I've been paid extra salary by old employer, what are my rights?

Question

I left my employer 4 months ago, but my sister in-law (with the same surname and initials) is still employed. By mistake they have paid her salary into my account.

My last employer treated me badly so I have no quarms about keeping this.

I have informed my sister-in-law and she is indeed missing the salary and very embarrassed that I now know what she is paid. Does she have any rights against the employer as well as they have effectively broken her confidence by revealing her salary.

How will the company reclaim the money from me? Can they simply reverse the payment to my account? Do I have the right to refuse to pay them back?

Sorry for the long question and thanks for your help.

Trust me gillm - if you knew my old employer you wouldn't think me dishonest or dishonerable to try to keep the money! It's a chance to get even for all the trouble they caused me!

Answer 1

Your sister-in-law is entitled to be paid which she hasn't been at the moment. That's irrespective of any mistake made by the company.

You are in receipt of money which is not yours and you have no right to try and hold onto it. Eventually it will dawn on the company what they have done wrong and will be looking at you to return their money.

They might be able to cancel the transaction if they catch it quickly, otherwise they will probably write to with the threat of legal proceedings.

Don't worry about the long question - at least I understood it!

Answer 2

You sister-in-law needs to chase the Company for her wages. If non-payment results in overdraft charges etc. she can claim these from the Company as well.

It is doubtful if she has any further claim, given that it was an honest mistake and (as far as I can she) the fact that you are now aware of her salary value has caused her no material loss == and to attempt to do so will poison her relationship with the Company.

Sooner or later the Company will realise where the money has gone and will try to get it back .. if they are quick about it they can 'reverse' the transaction with the bank (I believe the limit is about 30 days) .. if you have already withdrawn the money this will result in an Overdraft and you will have problems (not the Company).

If they are too late, then they will write to you at your last known address demanding you return the money .. of course returning the letter marked 'Unknown at this address' may delay matters some-what .. if the amount involved is low, they may well write it off .. on the other hand they could pass it on to Debt Collectors etc.

Answer 3

I've had an employer like that and I'd want to do the exact same thing as you're contemplating. But deep down you know that this is money that you were not entitled to. So legally and morally you would be wrong to withold it if they demanded it back. Thats only if they ask for it back!

Make sure that your SIL tells them that she hasn't been paid. Tell her not to mention that the money went to your account. Their records will obviously say that the money has been paid. She can show that her account has not been credited by showing them a bank statement.

They'll probably contact you as they still have your records. I'd be inclined to say that I've spent the money. But the law might take a dim view of you spending money that clearly wasn't yours.

Best thing, just keep quite. If they ask for it then deny all knowledge and pretend that you haven't seen your account. You'll probably have to pay it back as they'll contact your bank who will then write to you if not call you.

Answer 4

The former employer does have the right to the money, but it is less clear what process they can legally employ to recover it. They certainly cannot remove it from your bank without your written authorisation.

Your Sister-in-law has a right to be paid that is separate to any issue her employer may have with you. She cannot claim a breach of confidentiality because the claim would be doomed to fail. It is clearly an honest mistake on the part of the employer.

I suggest you hold firm and deny you ever had the money and that your sister-in-law makes a claim at the employment tribunal for an unlawful deduction of wages if the employer does not pay her.

Answer 5

Do you have any debt? if so, i might pay off any debt you have apart from your guy or woman loan in case you have one. Then i might confirm I surely have a minimum of 6 months of dwelling expenditures stored up (i might like 12, yet once you think of you have an exceptionally safeguard activity 6 is okay.) save contributing on your 401K as much as the journey and you will even do greater in case you experience like the investment alternatives are good. stay faraway from unmarried shares except you're in basic terms utilising your leisure money or some thing on them. unmarried shares are exceptionally lots playing in basic terms like going to the on line casino and playing blackjack. make contributions the max you may right into a Roth IRA utilising advance inventory mutual money and perhaps placed 10-25% in a international fund.

Answer 6

sorry to burst your dishonest little bubble sweetie but you know it's not yours and if you keep it - it is theft under the law (UK).

i would suggest that you contact the company and ask them how you get it back to them so at least you can look as though you have some integrity even though it appears you are sadly lacking on this front - I'd hate to think your sister -in-law may be implicated in any way and lose her job because of your lack of morals.

your relative can try making an issue re the salary but it is clearly an error and it is unlikely she will get anywhere - you on the other hand may find yourself with a criminal record if you don't do the Honourable thing.

Answer 7

we can all say what we think here, but i think you need to speak to citizens advice for the law on this, its free legal advice and i recomend you visit them in case you get any threatening solicitors letters