What happens if you are overpaid upon leaving employment and you decide to keep the money?

[mkjuk]

I've been paid a full month but left halfway through, consequently i've been overpaid �450. The employer sent a letter saying they want repayment by 13th Jan "when we will be in a position to issue your form P45 with correct figures" I really could do with the money (Rent and Bills to pay etc) while i look for another job. What are the legal / other implications of me not repaying the money?

[andy-hughes]

Your employer could - and probably will - sue you to recover the money.

The best thing is, write a nice letter advising that your finances are a little tight - don;t go into details - and stress that you are keen to repay the money as you are aware it is not yours to keep.

Offer to repay it at �20.00 per month by Standing Order from your bank - not Direct Debit, this gives them access to your account ands they can take more out as longas they tell you they are doing so.

They will probably accept this. if they send you a letter threatening court action, write back and say that you have made a reasonable offer to repay the money, and that you will advise the court of the arragement, which you offered.

Keep all copies of corrrespondence. Do not discuss this at all by telephone, only by letter.

Hopefully this will resolve the situation. Companies often send 'threatening' letters advising legal action - it's usually just to get a reaction from the other parrty.

If you are polite but firm, and therefore confirm that you are not going to be bullied, they should back off, and you get to pay them back over time.

Good luck.

[WoWo]

Andy is correct, on the one hand they have every right to ask for the money back, but as it was an error on their part they also have to accept a repayment schedule suitable to you.

[funnywebsite]

You have to give it back but like andy said you could try and be difficult but the score is you have to give it back as far as I know.

[spaced]

in all fairness you were not expecting to be paid more anyway, and if they hadnt you would have had to find other ways of paying your rent, so...just pay them the money back, its not worth it. I have always been told to never burn your bridges, you might need a job again there one day.

They will recover the debt from you one way or another anyway. why make life difficult.

[Dkeyse]

Tell them to bog off and use the money to go on a nice cruise!