Law Queries

I have recently found out that my employer has overpaid me. I was unaware of the fact as the money was part of a legitimate allowance due to me and I had no clear idea of how it was calculated. My employers have now said that they want it all back at once. But I have spent it all and can't afford to pay it. Can I just refuse?

If you genuinely believed that the money was due to you and spent it, your employer may not be able to recoup it.

In any case even if it was established that you should pay it back, your employer is under a duty to act reasonably. Asking for all of an overpayment back in one go is rarely likely to be considered as reasonable.

Your employer should stage the deductions over a period of time. You could suggest, for example, that the period of re-coupment should be twice the length of the time over which the overpayment occurred.

* More information: LRD booklet, Law at work 2003