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Ex-employer claiming overpayment back

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  • Ex-employer claiming overpayment back

    Hi everyone. My partner has recently ended employment at one firm to start at another.
    Before he left, he sat down with the finance officer to go through his final pay cheque. They agreed he was owed 2 days holiday so this pay was added on. They parted on good terms.
    Around a month after leaving, he received a call from the finance officer to say there had been a problem and that he actually owed them money. He then received a letter detailing that he owed the following:
    (1) he actually owed them two days holiday, so they wanted to claim 4 days pay back
    (2) when they set up his childcare vouchers 18 months previous, they'd made an error meaning he had received the vouchers but he'd not actually made the salary sacrifice. Due to the format of the payslips, he'd never picked this up (and I'm slightly concerned that had he not left, this could have gone on for a long time) so they want to claim that back, less 20% tax benefit.
    For us, this is a substantial amount of money and we simply don't have this hanging around to pay back. What I want to know is legally, are we obliged to pay this back given:
    (1) the two days holiday was agreed by both parties, monies paid and spent in good faith
    (2) the voucher deductions was an error on their part, which again was not picked up by them and the monies spent in good faith
    Thanks in advance for any advice
    Tags: None

  • #2
    Re: Ex-employer claiming overpayment back

    I'm afraid that, as long as they don't wait years to do so, employers can recover wages that they have paid by mistake.

    (1) Unless there's a clause in the contract stating that they can recover payment for overtaken holiday, they can only claim for the 2 additional days.
    (2) They could argue that, regardless of the format of his payslips, he should have alerted them that his wages didn't reduce after the salary sacrifice agreement was made.

    You could ask to pay the money back in instalments.

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