Overpayments

Employers can recover money mistakenly overpaid to an employee, regardless of the circumstances leading to the mistake.

The facts

Mr Price-Jones worked for Commerz-bank and was entitled to a performance bonus. By mistake the bonus was paid to him twice. The bank claimed the right to recover the overpayment.

The ruling

The Court of Appeal held that the overpayment was clearly a mistake on the bank's part and that it was entitled to get it back, unless the employee could show that it would be inequit-able for him to be required to repay it.

Commerzbank v Price, Court of Appeal, 21 November 2003