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Do I have to repay salary paid after employment ceases?

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  • Do I have to repay salary paid after employment ceases?

    Hi all,

    on 31st August 2021 I ceased employment with Company "X", I had been with X since 20th April 2020. X provides services to many entities, the department within which I worked ultimately supplied it's services to the UK government.

    31st August 2021 was the natural end of a full time contract, I was not sacked, I had no need to resign, although they wanted me to stay on I just let it end (they were fully aware - I didn't just walk out the door).

    Previously X had paid me on or around the 25th of each month, for the work in that month (e.g. payment on 25th March for work done in March).

    On 27th September, due to X's own admin failings, they paid me as if I had done work for them in September (i.e. after I had left X's employment).

    This may sound crazy and I'm not rich but I didn't notice. I try to avoid looking at my bank account due to my anxiety and depression. The money has been spent in good faith and repaying it quickly will incur some pain.

    I received a letter recently claiming this over payment back.

    I have checked my initial contract of employment and I can find no reference to X's ability to reclaim overpaid salary. I can't recall signing anything regards my salary during my employment that specifically calls out X's ability to reclaim over payment (but this document may exist). I understand companies have rights to reclaim overpaid monies in most cases but that there are also exceptions and that, in any case, I think that if they claim payback they must do so reasonably in order to help me avoid financial hardship.

    Notwithstanding any moral imperatives to repay the money, what rights do I have to EITHER keep the money OR to significantly delay repayment OR to repay it slowly over a period of (e.g. 12) months?

    There is further context here, for which I have little proof other than my own experience/ observation when working for X...

    X's organization is chaotic (and has been known to be chaotic for years) and a significant number of their staff continually work above and beyond their contracted hours and take time off with stress. I too suffered significant stress in late Summer 2020, was in danger from myself because of this and though I carried on and got through this myself I was ultimately signed off with stress for 2 weeks towards the end of 2020. Although X put in place help to get me through this signed off period and I came back to work at the start of 2021, (a) it has left me mentally scarred and (b) throughout the rest of my time with X the common consensus was management continued to fail to correct for this chaotic environment - this is the significant reason why I didn't wish to extend my employment with X.

    N.b. there are lots of good people working over their contract hours for "X" and yet, for reasons of avoiding further admin, filling in time sheets that exactly meet the standard number of contracted hours. The problem is not the people, it's the lack - in this specific area - of tackling a government services knock on effect to employees.

    Thank you in advance for reading, any constructive advice gratefully received.
    Tags: None

  • #2
    Hi HEAVELYZ

    Your employer has a right to claim over-payments back. But they need to act reasonably. They tend to be accommodating in that they want the money back. If you are struggling tell them.

    Fill in a income and expenditure form. Work out what you can afford to pay each month, send it to them with a covering letter, include your health conditions. It's not a priority debt.

    https://www.acas.org.uk/check-if-you...rom-your-wages

    https://nedcab.cabmoney.org.uk/splash-1.asp

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