'overpayment'

[specialist35]

Hello all !

 

Now, this 'problem' I've got is not really a problem as such. But I am posting it on here as I am very interested in hearing other peoples views and advice on this....

 

On the 31st of july 2009, I left my employers after 3 years service to start a new job on the monday 3rd of august. After 6 weeks I decided this new job wasn't really for me, so I approached my old employers about the possibilty of coming back. And they were very happy to have me back. I then phoned my manager and informed him that the job wasn't for me and I would be leaving to go back to my old place. He was very understanding and and accepted my immediate resignation on fri 11th of september. I was not expecting pay from them at all. But on the 21st of september I recieved a full months salary and I thought that was very generous of them. But I seem to have underestimated their genorosity (stupidity more like), as they not only paid me a full months salary in october but have paid me again in november, which is over 2 months ago since I left !!!!

 

Any advice on this will be gratefully recieved. Thanks in advance...

[elpulpo]

I wouldn't get any ideas about spending it.

But I wouldn't ring 'em up either!

 

They'll probably figure out their mistake sooner or later, and will have a legitimate claim for repayment.

 

Stick it somewhere safe. Premium bonds?

[specialist35]

It's pretty much already spent !!! I figure they can send me all the letters they like. I'll just ignore them. I can't get arrested, they can't apply for a ccj to be issued against me. What's the worse that could happen ?

[elpulpo]

Well, they CAN get a CCJ, that's the thing.

 

They have a statutory right to recover an overpayment of wages.

 

They'd struggle to recover it all in one go, as you no longer work for them, but you would have to come to some sort of agreement to pay the money back over a period of time.

 

Unless you're the sort who thinks they can just ignore their debts and they'll go away.

I was one of those, and 7 years later I'm still paying.

 

I presume they know who your present employer is (as you went back to your former).

Bear in mind, if they were to get a CCJ, they could request that the county court orders your employer to make deductions from your pay and hand it over.

 

I'd put the money to one side and keep quiet until if or when they contact you.

[BankFodder]

They don't have a statutory right to recover - but they certianly do have a right in the circumstances you have outlined. Certainly a CCJ is on the cards

[specialist35]

ok I accept a ccj is on the cards. so it's just like an interest free loan then ?

[scousegeezer]

Specialist35,

You could possibly be arrested for theft. You have ALREADY stated that you realise that you were not entitled to the money, yet you have disposed of the money as if you were the rightful opwner of the money. Also by your statement that you will ignore any letters you receive , you are inferring that you intend to pemanently deprive the rightful owner of the property. This DOES constitute theft. YOU ARE ON VERY DODGY GROUND. If I were you, I would contact them and make some arrangement to pay them back. NAUGHTY BOY.

 

Cheers - Scousegeezer.

[andie_303]

quick question along the same lines and not wanting to steal the OP's thread but....

 

say you have received a months salary and should only have been paid for half - whilst the company has the right to reclaim the money can they do so without prior notification?

 

If they take without notification is there any comeback on the company?

[Offkey81]

Companies can reclaim overpayments of wages through relevant legislation - unless there is the defence of estoppel (they confirmed it was your money after speaking to manager) or change of position (since then you have got a mortgage/baby - hardship).

 

Theft = intention to pementalty deprive = this is veiwed widely but this is really a civil matter

 

I have heard people put this in high interst accounts and give back whenever they request, keeping the interest, but I would be very wary of this, would not condone it or advise it.

 

The employer can reclaim the money from you next wage packet - no warning (depending on the amount) - the larger the amount the more they have to accomadate monthly/weekly repayments.

 

No notice is needed but would be regarded as best practice and I would check your contract to see if you have a contractual right to notice(maybe staff handbook.)

[specialist35]

I recieved this statement today in an email from an expert in payroll, human resources & payroll taxes:

 

If you have left the employment where the overpayment occurred

 

In this situation, your former employer is unable to make a deduction from your wages. But what if, some months or years later, your former employer, or even debt collector, contacts you claiming that you owe money that was overpaid in the former employment ? Much will depend on what was stated in the employment contract. Some contracts state that, if an employee leaves the employment owing the employer money that could not be recovered from final wages, the amount owed becomes a civil debt. If there is no contractual provision to treat the alleged overpayment as a civil debt the employer may have considerable difficulty in enforcing payment if you refuse to co-operate. In either situation, you should obtain advice from a solicitor or the C.A.B.

 

Could anyone verify this statement ?

 

Thanks

[Offkey81]

I would need more specifics to really evaluate the statement (e.g why), but I will try to.

 

It would be a civil debt anyway IMO, covered under the law of mistake (but I may be mistaken). Much like if a bank put 10k in your bank by accident and you withdrew it, they could pursue through the court system.

 

Therefore, it comes under the usual debt heading. If that is the case they would have to pursue you through the county courts (6 year time limit, have you accepted the debt as yours in that time, do they have your address etc). As such they would have to comply with the usual court rules and procedures (which are not too taxing - especially for sums 5k and below ), and provide evidence. Why you would need a contractual term stating it would become a civil debt I dont really understand (but I do not have a detailed knowledge of the law of mistake).

 

If it is this, then I cant understand the difficulty (except if you have defence e.g estoppel or change of position). However, there is a debt forum that may help you more than I can (bankfodder may aid better I think)