wage overpayment

[f2o2a2]

My sister was told recently that she had been overpaid. She set up a repayment amount which was accepted by her employer and has kept repaying ever since.

She left work for unrelated matters and took a claim to an employment tribunal. Her ex employer then put in a counter claim for the overpayment amount and this was due to be heard alongside her claim at the tribunal.

Now her ex employer wishes to settle and is threatening that if she doesn't accept their offer, that the outstanding amount will be passed on to a debt collection agency and the bailiffs will be round to her property to claim the value of the outstanding amount.

Firstly, will that happen despite the counter claim not being heard in front of a judge?

And what happens if she withdraws her claim – will the counter claim automatically get withdrawn too, or does that get heard independently at the employment tribunal hearing?
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[ULA]

It is always difficult providing guidance with a tribunal claim in progress and with limited information, such as the potential value of your sister's claim against that of the remaining amount due on the overpayment. Has your sister continued to make payments under the repayment terms even whilst the tribunal process is proceeding?*

I presume that the counter claim by the employer is being heard as part of an "off-set" defence. If any settlement is reached that should be on the basis that both claims are dealt with as part of the agreement.

If she withdraws her claim then I believe that the employer would not be able to continue as there is effectively no "off-set" and either they just revert back to accepting the repayment plan already in place that your sister is currently paying against or if they want to recover the money more quickly they may try to take civil court action to recover the money.*