The recovery of an overpayment of salary made to a current or ex-employee can often be an area which employers find difficult to deal with. Mistakes can happen when processing wages particularly when calculating the amount an employee is due when they are leaving your business and especially in light of the various elements which can make up an employee’s overall pay. In the event that an overpayment is made to an employee in most cases there is no reason why you should not recover this money from them.
Our Debt Recovery and Employment teams specialise in advising and taking steps to recover monies paid to employees or ex-employees by mistake. We can assist you in all aspects of recovering overpayments made to employees and ex-employees from advising you on your legal position to litigation. Our Debt Recovery team has extensive experience in dealing with such matters in high volumes for large corporate clients as well as charities.
Word of warning
There are potential employment law implications when seeking to recover money from an employee so it is important to be sure of your options before seeking to recover overpayments. Approaching the situation in the wrong way at the outset can affect your ability to recover an overpayment and potentially breach a current employee’s contract of employment. Any such breach could lead to a claim of constructive unfair and wrongful dismissal. Therefore we would always suggest that you seek advice to be sure of your position before taking any steps.