Over paid

[k8bailey]

please help to settle an argument I had with a friend - (these are all hypothetical)

1. If an employer overpays a employee, does the employee have a legal responsibility to tell the employer?

2. If the employee doesn't tell the employer, can the employer take back the money without discussing it with the employee?

3. If the employee doesent tell the employer that they've been overpaid, and the employer doesn't realise. How long is it before the money belongs to the employee and the employer can't ask for it back?

TIA

[Ethel]

1. No

2. Yes, providing it is under a certain amount. If it is a lot of money, notice has to be given that the monies will be recovered at x amount per week/month.

3. Never

[Ethel]

Good detailed article here, including the relevant laws

http://www.lemon-co.co.uk/article_overpayments .php

[k8bailey]

thanks for that ethel, that's what I thought on the first two. How about if the employee leaves the company, can the employer still get their money back?

[Ethel]

Yes, they can.

They can take it from the final payment; if that isn't enough or the overpayment isn't realised until afterwards the procedure would be to write to the ex-employee asking for repayment and if it wasn't forthcoming, it can be pursued in the courts.