23 May 2015

A question about : Overpayment in salary

Hi I resigned from my job about 16 months ago and now I have had communication that I was overpaid a certain amount (just bought to light now via letter). The company I was working for accepted my resignation 16 months ago and no debt or 'overpayment' was mentioned. Are they legally still able to claim this back from me being so long ago as well as them accepting my resignation at the time?

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Best answers:

  • Was the letter actually from your previous employer?
    What exactly does it say?
  • As long as they can prove you were overpaid, yes they can claim it back.
    Although they cannot demand you pay it all back at once.
    Ask them to prove it and when they do, offer them a payment plan.
  • [QUOTE=MissLaura;66575545]Was the letter actually from your previous employer?
    What exactly does it say?[/QUOTE
    They said I have 7 days to respond and headed the letter 'notice of intended legal action' saying I owe a certain amount during some dates specified. I have no proof or backup of the debt. Surely they should have stipulated this before accepting my resignation?
  • Well if someone in payroll had made a mistake and didn't actually notice it until you left, well they couldn't stipulate it, could they.
    It has probably just come to light during the annual audit.
    Ask them for proof of this overpayment
    (Did you not notice it yourself, how much was it)
  • I'd also let how much you need a reference guide how you deal with them. If you do need a reference shortly try and weigh up the cost of that Ј300.
  • Wow, letter before action on the first communication. That's a bit heavy handed to say the least. I would tell them that I require proof of the calculation showing exactly HOW that Ј300 was overpaid and that if this proof is forthcoming, then you will agree a payment plan that is convenient to you. You also require information from them as to the tax implications of their mistake. Surely, if you were overpaid, then you overpaid tax and therefore you require them to advise on how they intend to rectify this.
    As for a reference, I've never found them necessary, not even back when they were common place. They cannot legally give you a 'bad' reference as such, but they can damn with faint praise as it were. I might be inclined at an interview (only if the question arose) to put any 'reference' they may give in the proper context, ie, they demanded you cough up immediately for their mistake.
  • not officially, but they can on a call prove it
  • Ok so I requested a breakdown of the overpayment for which tax and NI was was taken... Note the breakdown is is pretty poor on excell and did not include my pay slips etc - I am unkeen to pay anything without them sorting out the TAX issue - what can I do in this instance? Is just a plain excel breakdown good enough?
    I am happy to pay the overpayment but I can't afford to pay all at once - what is a fair comprimise in terms of payments - as I have other things to pay which are more important and at the end of the day it is their error... Obviously I want to pay as small amount as possible...
    Also a thing to note this is with a debt collectors not the actual 'client' my previous employer...
  • Thanks so I have sent a letter direct to my old employer recorded delivery asking for more information especially the tax implications
    I addressed it too my old MD. I feel i am being reasonable as what they sent me was a poorly put together excel sheet with no reference or dates etc. I told them I will only communicate direct with them and not some debt collection agency.
    I am worried they may in the meantime try and start a ccj against me....are they able to this whilst Iam in contact with them asking for iinformation? I have to be careful as I can't afford a ccj as i am working in the financial services industry.
  • I received a county court letter today!! The information they have sent me is insufficient in terms of the tax implications due to the overpayment in salary...I don't dispute the debt...also I cannot afford to pay this all in one go...if I write back saying I can pay a certain amount each month will I still have a ccj on my record? Please help the main thing is I do not wreck my credit score with a ccj I want to avoid at all costs.
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