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Law Queries
Overpayment of wages
Q. Last month, I received an extra £300 on top of my regular, monthly salary. My
employers have told me that they overpaid my salary by mistake and want the money back. Are
they allowed to do this now?
A. Yes, in most cases like this you will have to be prepared to pay the money back.
The Employment Rights Act 1999 has a section that says that it is not unlawful for an employer to deduct overpaid wages or expenses, made (for any reason) by the employer to the worker (including a mistake made by your employer).
If you are worried about whether you can afford the repayment immediately, you should speak to your union rep to help you discuss repayment with your employer.