Old employer asking for overpayment of wages back

[graybear]

My son has just received a letter from a former employer who says that my son was overpaid whilst in his employ last summer. The amount in question is about £160, not much admittedly but my son is a student who has very little disposable cash. The employer is threatening to put the matter in the hands of a debt collector if my son does not respond.

What is my son's legal position?

[Goldlady]

How did the overpayment come about? Does your son have payslips for when he worked there?

 

It depends on the circumstances - but I suspect they have little right to chase it after all this time if he did not know he had been overpaid.

[maroondevo52]

Hi, graybear.

 

I'll move this thread to the appropriate Forum.

 

Regards.

 

Scott.

[rory32]

Normally if there is an overpayment of wages and you have left that employment it will then become a civil debt, which could be enforced through the courts if necessary.

 

That being said any debt would have to be substantiated. Has the former employer informed your son how the overpayment came about and substantiated the amount claimed or have they simply stated that he owes them the monies?

[Sidewinder]

I agree with the above. The employer should first provide evidence as to how the overpayment came about, not simply demand repayment of an unsubstantiated amount.

 

The legal position is somewhat cloudy, but is almost certainly on your son's side. There is no right for the employer to reclaim money in accordance with the Employment Rights Act, for your son is no longer in their employ. They are entitled though to seek repayment through the civil court if they deem it worthwhile (which I would doubt for £160), however your son has on his side a defence of estoppel - he was not at fault for the overpayment (ie he had not falsified timesheets or expenses forms), was not aware of the overpayment, and has altered his financial position before the error was notified to him. Basically, if the amount was such that he could reasonably have believed that he was entitled to receive it (severance pay, overtime worked, outstanding holiday pay for example) and he has spent it in good faith before the employer advised him of the overpayment, then this is normally sufficient defence in law that a claim for repayment would be dismissed for such a small amount of overpayment.

 

Morally, your son may decide that he wants to repay the money, and if this is the case he should certainly not be put under any pressure to repay it all at once, so could make an offer bearing in mind his current financial circumstances, to make repayments over a suitable period of time.

 

Basically the choice is his. Refuse to repay it and deal with the threats - you will get plenty of help from the site on that score - or repay the money at his own convenience. Their mistake, their fault in not discovering it sooner, they must take the consequences.

[graybear]

Thanks to everyone for their advice.

[graybear]

The employer is sending the correspondence to his mother and I's address, but he does not live here anymore. Are we obliged to tell them where he does live now or would we be justified in simply returning the letter to sender marked 'no longer at this address'?

[rory32]

Just write on it not known at this address and stick it back in the post. You don't have to tell them where he now resides and it's actually an offence to open someone elses mail anyway.