Overpaid by employer

[Rupert1000]

I have recently returned from 12 weeks unpaid leave from work. However, whilst I was away, my employer continued to pay me every month. On my first day back at work I contacted them to tell them of the mistake. I have had no response from them so far. Is there a time limit in which they can reclaim the money? It is quite a lot of money and I want to know if after a certain length of time, the money becomes mine, or if my employer can still ask for it back, in for example 2 years time? Thanks

[237SJ]

Happened to a friend of mine. She left the company and a while later they paid £25,000 into her account. She`s a solicitor so reported it straight away as it could affect her reputation. She said there`s no time limit - they could ask for it 5 years later if they so wished.

[bednobs]

no time limit

[joggerjayne]

The money is, technically, owed to the employer.

They have been told, so they are aware of it.

It's a simple debt.

Under the Limitations Act 1980, a simple debt is "statute barred" after 6 years.

[MarkRae]

You certainly did the right thing by informing them.

If I were you, I'd squirrel it away in an account which pays a good rate of interest, but not one which requires a very long notice of withdrawal of funds...

[dzug2]

It never becomes yours.

However after 6 years your employer loses the right to pursue the debt through the courts.

[237SJ]

There`s no such thing as an account that pays a good rate of interest at the moment! If it needs to be put somewhere for the time being, why not try Premium Bonds? You can get the money back when asked, and you would win something

[237SJ]

Sorry, meant COULD win something!

[joggerjayne]

Stick the lot on Italy v New Zealand.

Italy will be about 10-1 ON, but that's 10% in one week.

A bank will give you 5% a year.

So the return on the football is 100 times better than the bank.

[Hymie]

After deducting betting tax, you might be lucky to get your stake back (assuming Italy win).

[boxtops]

Cash ISA is worth considering - not much interest but at least you don't pay tax on it!

[sue11]

Hi Rupert, how did you inform your employer of this, by email or letter? Or just by word of mouth that may not have got to the right person? If I was you I would ensure that you have proof of your reporting of their mistake in writing and then you can point to this, if it ever came to the point that your company requested it back and accused you of just keeping silent. It also depends on what your expectations of your career is with this company. If you are hoping for promotion, I would be very responsible and ensure that you do everything you can to ensure that the money is paid back, earning you brownie points with the company. Regardless, ensure that you protect yourself against any accusations of dishonesty.
Best regards, Sue