Overpayments

[Andyinhaler]

I recently left my employment with a local council on 02/06/19 to take up a new position with the civil service. In the lead up to my leaving I submitted a notice letter and emailed on separate occasions to ensure my annual leave was correct and my salary sacrifice scheme was settled. 2 months after leaving i noticed a payment from dmbc had been made to my bank account. I immediately notified my past manager. I then noticed a previous payment had been made a month earlier- sadly this money had been swallowed up and spent on my day to day living costs. In October i received a notice by mail that i should repay both payments plus my salary sacrifice balance all together totalling over 4k. I am of course happy to repay the second payment in full immediately as I have moved this to a separate account. I would however like to contest the first payment and repay the 600 pounds salary sacrifice in installments. Can you advise me on my legal position?

[jaguarsuk]

Your past employer might try to claim that you have been unjustly enriched by virtue of their mistake, but because of your belief that at the time the first payment was made that all money in your account was yours, a defence to such a claim would be change of position as defined in Lipkin Gorman v Karpnale Ltd 1991.

As such I would write to them to confirm you have spent the original payment in the honest belief at the time the money was yours and that should they pursue you for it your defence would be change of position as defined in Lipkin Gorman v Karpnale Ltd 1991. That you are happy to return the second payment immediately and that you don't have the funds to repay the salary sacrifice therefore offer £X per month until repaid.

That they should confirm in writing they will accept the repayment of the second payment amount and repayment of the salary sacrifice by instalments of £X until repaid as full and final settlement of the matter plus provide bank details to make payments.