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Overpayment of wages

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  • Overpayment of wages

    Hi , I have been employed by a local council for the last 10 years on a part time contract of 16 hours per week.
    The last year and a half I cut this down to 14 hours due to having a baby.
    I was informed this week that I have been overplayed by two hours per week for the last year and a half and now owe a substantial amount of money.
    My 16 hour contact included weekend enhancement which I now no longer work so do not receive.
    My point is.. I did not realize that I was being overpaid and my payslip does not state the weekly hours and hourly rate. Also there have been a few pay increases over the years of which I have never been informed of.
    My weekly timesheet state 14 hours and my holiday entitlement is based on 14 hours , so I don't know what's going on!
    Do I have to pay this back or can I use Estoppel?

    Frustrated!
    Tags: None

  • #2
    Firstly have they provided you with a breakdown of the overpayments and do you agree with their calculations now you are aware of the situation?

    Secondly what does it say in your contract about repayments of overpaid salary?

    When you reduced your hours yet received the same salary did you not think this was strange?

    Your employer could claim that you have been unjustly enriched by virtue of their mistake, but you could argue that you had a genuine belief that the salary being paid into your account was yours, a defence to such a claim would be change of position as defined in Lipkin Gorman v Karpnale Ltd 1991 i.e you have spent the money on every-day living expenses because you had a genuine belief that the money was yours to spend.


    If you would like a one-to-one expert consultation with me on your employment issue than I can be contacted by emailing admin@legalbeaglesgroup.com

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    Comment


    • #3
      Thanks for your response
      I have a meeting with my employer on Monday morning so will get all the details of overpayment then.
      As for my contract it doesn't state anything regarding recouping wage overpayment, do I guess this is in my favour.
      With regards to the wage/hour difference, my 16 hour wage included weekend enhancements so the difference between the two wages was substantially different..

      Comment


      • #4
        Be prepared at your meeting for the company to ask why, if there was such a substantial difference, you did not notice this and check it with them.

        Your best approach would be that you had no reason to think that the company was not paying you the correct amount of wages and that this has gone on your living expenses and has therefore been spent.

        I think you will have to see what they say on Monday but please come back to this thread if you have any questions after that meeting.

        If you would like a one-to-one expert consultation with me on your employment issue than I can be contacted by emailing admin@legalbeaglesgroup.com

        I do my best to provide good practical advice, however I do so without liability.
        If you have any doubts then do please seek professional legal advice.


        You can’t always stop the waves but you can learn to surf.

        You are braver than you believe, smarter than you think and stronger than you seem.



        If we have helped you we'd appreciate it if you can leave a review on our Trust Pilot page

        Comment

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