Overpayment of Salary Following Termination of Employment
Overpayment of Salary Following Termination of Employment
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Swervin_Mervin

Original Poster:

5,003 posts

268 months

Thursday 29th October 2015
quotequote all
Employee leave company and is paid for leave that is unused. Only it turns out, taking into account pro-rata usage of leave, that they weren't owed any at all. Employee has made all efforts to contact all relevant departments that this incorrect payment shouldn't be made but is hearing radio silence.

What's the situation legally with regard to that payment and its potential recovery by the employer, once the employee has left?

Barkychoc

7,848 posts

234 months

Thursday 29th October 2015
quotequote all
I am sure they will catch up in the end - I have been in exactly the same position. It took a while then they wrote to me usinge lots of legal words - I waited till the first day of the month after they seemed to be getting properly serious (I assumed they would chase at month end) - I transferred the money back then got the court letter - I took a little comfort from sending them a letter stating 'This has been repaid - please check your records'. I was being a bit of an arse but I would do the same again biggrin I hope they had a bit of hassle sorting it out. I wasn't terminated I left - but I hated the job with a passion.

Swervin_Mervin

Original Poster:

5,003 posts

268 months

Thursday 29th October 2015
quotequote all
Barkychoc said:
I am sure they will catch up in the end - I have been in exactly the same position. It took a while then they wrote to me usinge lots of legal words - I waited till the first day of the month after they seemed to be getting properly serious (I assumed they would chase at month end) - I transferred the money back then got the court letter - I took a little comfort from sending them a letter stating 'This has been repaid - please check your records'. I was being a bit of an arse but I would do the same again biggrin I hope they had a bit of hassle sorting it out. I wasn't terminated I left - but I hated the job with a passion.
laugh

What happened in terms of the tax/NI side of things? Did you just seek reimbursement from IR?

thelawnet1

1,539 posts

185 months

Thursday 29th October 2015
quotequote all
Swervin_Mervin said:
Employee leave company and is paid for leave that is unused. Only it turns out, taking into account pro-rata usage of leave, that they weren't owed any at all. Employee has made all efforts to contact all relevant departments that this incorrect payment shouldn't be made but is hearing radio silence.

What's the situation legally with regard to that payment and its potential recovery by the employer, once the employee has left?
Does your contract of employment make any mention of 'overpayment of wages'?

How have you determined that the leave was in fact overtaken?

In principle it will be difficult for them to recover monies paid under a contract of employment, but it always 'depends'.

Swervin_Mervin

Original Poster:

5,003 posts

268 months

Thursday 29th October 2015
quotequote all
Not sure on the contract, would have to check.

The leave is definitely not owed by the employer, no. Essentially it should be a clean break.

spikeyhead

20,547 posts

227 months

Thursday 29th October 2015
quotequote all
thelawnet1 said:
Swervin_Mervin said:
Employee leave company and is paid for leave that is unused. Only it turns out, taking into account pro-rata usage of leave, that they weren't owed any at all. Employee has made all efforts to contact all relevant departments that this incorrect payment shouldn't be made but is hearing radio silence.

What's the situation legally with regard to that payment and its potential recovery by the employer, once the employee has left?
Does your contract of employment make any mention of 'overpayment of wages'?

How have you determined that the leave was in fact overtaken?

In principle it will be difficult for them to recover monies paid under a contract of employment, but it always 'depends'.
IANAL. however with your name it would suggest that you are trying to present yourself as one, butI have a feeling that you are talking what might be called, in official legalese, bks, or possibly complete and utter bks.

Vaud

59,744 posts

185 months

Thursday 29th October 2015
quotequote all
spikeyhead said:
IANAL. however with your name it would suggest that you are trying to present yourself as one, butI have a feeling that you are talking what might be called, in official legalese, bks, or possibly complete and utter bks.
I asked him/her on a similar thread and had no response.

thelawnet1

1,539 posts

185 months

Thursday 29th October 2015
quotequote all
spikeyhead said:
IANAL. however with your name it would suggest that you are trying to present yourself as one, butI have a feeling that you are talking what might be called, in official legalese, bks, or possibly complete and utter bks.
I have used the same username for the last 15 years, I am not 'presenting' as anything. For the avoidance of doubt, I am not a lawyer, I did recently act as a lay representative in a wages case, which was settled, out of court within the last month for 100% of what was claimed. But this is the internet, so everything is made up, so I wouldn't pay any regard to that.

BTW thanks for letting us know that you anal. It's great to know.


Edited by thelawnet1 on Thursday 29th October 22:19

JonV8V

8,198 posts

154 months

Thursday 29th October 2015
quotequote all
thelawnet1 said:
I have used the same username for the last 15 years, I am not 'presenting' as anything. For the avoidance of doubt, I am not a lawyer, I did recently act as a lay representative in a wages case, which was settled, out of court within the last month for 100% of what was claimed. But this is the internet, so everything is made up, so I wouldn't pay any regard to that.

BTW thanks for letting us know that you anal. It's great to know.


Edited by thelawnet1 on Thursday 29th October 22:19
Was the username Walter Mitty taken 15 years ago?

thelawnet1

1,539 posts

185 months

Thursday 29th October 2015
quotequote all
JonV8V said:
Was the username Walter Mitty taken 15 years ago?
No, I was running a website called 'lawnet'.

Monkeylegend

29,482 posts

261 months

Friday 30th October 2015
quotequote all
thelawnet1 said:
JonV8V said:
Was the username Walter Mitty taken 15 years ago?
No, I was running a website called 'lawnet'.
You guys have got it all wrong, he's a gardener/slug controller the website was "lawn et".

Bluebarge

4,519 posts

208 months

Friday 30th October 2015
quotequote all
If you're not entitled to the cash you are legally a constructive trustee for that amount. Your obligations are to keep the cash safe and inform the sender that they have sent it in error. Sounds like you have done the latter so just keep the cash and wait for them to contact you. They may only sort this out at the time of the annual audit. Keep a written record of the communications you have sent.

thelawnet1

1,539 posts

185 months

Friday 30th October 2015
quotequote all
Bluebarge said:
If you're not entitled to the cash you are legally a constructive trustee for that amount. Your obligations are to keep the cash safe and inform the sender that they have sent it in error. Sounds like you have done the latter so just keep the cash and wait for them to contact you. They may only sort this out at the time of the annual audit. Keep a written record of the communications you have sent.
If they've calculated his leave differently from how the OP has calculated it, it's not necessarily going to be noticed in an audit.

Swervin_Mervin

Original Poster:

5,003 posts

268 months

Friday 30th October 2015
quotequote all
Not differently calculated. Just a lack of pro-rata of entitlement taken into account based on employment termination date within the year.

I should laugh at the idea of an annual audit as well!

Foliage

3,861 posts

152 months

Friday 30th October 2015
quotequote all
Monkeylegend said:
thelawnet1 said:
JonV8V said:
Was the username Walter Mitty taken 15 years ago?
No, I was running a website called 'lawnet'.
You guys have got it all wrong, he's a gardener/slug controller the website was "lawn et".
I read it as the lawn et as well, and assumed it had something to do with grass and aliens.

thelawnet1

1,539 posts

185 months

Friday 30th October 2015
quotequote all
Swervin_Mervin said:
Not differently calculated. Just a lack of pro-rata of entitlement taken into account based on employment termination date within the year.

I should laugh at the idea of an annual audit as well!
so you left four months (or whatever) through your holiday year and they paid you for the full twelve months?

Swervin_Mervin

Original Poster:

5,003 posts

268 months

Friday 30th October 2015
quotequote all
Not me, but that's the situation yes.

All because HR relied on the employee to tell them how many days they had remaining, and the employee missed the policy on pro-rata adjustment of leave.