Wages overpaid to employee

Wages overpaid to employee

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An employee reduced number of working hours which should have meant reduced wages. Information not passed to payroll dept so employee continued to be paid at old rate and at old rate for overtime. Once overpayment came to light following a query by payroll dept into overtime does employer have a right to recover the overpayment? The period of overpayment was over several months and to recover over subsequent months would take some time.
Michael Barron

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By AnonymousUser
09th Feb 2003 00:46

example.
came across this delema while ago and legal advice said that as an act of negligence had taken place, the employer/company/directors were ultimately responsible for the loss and the money could not be reclaimed from the employee. the person who authorized the payment was not there much longer.

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By Abacjm
07th Feb 2003 03:04

Wages overpayment
Yes, you can reclaim the wages overpayments, but presumably you will still wish to retain the services of the disgruntled employee (!), so some understanding will have to brought to bear on any repayment schedule agreed between you and signed by both parties as a binding repayment contract - just in case he/she leaves in the interim. Repayment instalments should be geared to ensure that he/she should still be left with a wage to live on, especially as this was the Employers error.

Of course the deductions will have to be made BEFORE tax and NIC and that may help as the employee will be paying less of each on the reduced pay. If the error has gone on since before the end of the last PAYE year, last year's P35 and the employee's P60 would have been wrong, but with the Employees agreement, the total overpayment may be contained in this tax year, I should think.

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