How do I stand legally

[Wile E. Coyote]

If paying it back in full isn't an option, the way I see it is you've got five choices:

 

1) Agree you've been overpaid and try to structure a way to pay the excess back

2) Agree you've been overpaid but say you can't/won't pay it back and put the ball in their court to try and recover it

3) Dispute that you've been overpaid and put the ball in their court to try and recover it

4) Ignore the whole issue and hope that it goes away

5) Dispute that you owe the money and ask them to breakdown the over-payment precisely (and then choose from 1-4).

 

Don't envy you as all of them have pros and cons.

[Mid life crisis]

I don't quite understand the phrase 'Tax in lieu'.

 

is that a sugestion that you had been overpaying income tax

 

Or did they mean payment in lieu.

 

Were you given a contract of employment and what terms where outlined in your offer letter

 

I would put a paper trail in place and write to them seeking clarification, but don't highlight the phrase on you payslip.

 

That will at least stall things for about a month.

[Nick Algar - Competition Secretary]

I agree with MLC, I am really not sure what they mean and i think that needs clarification and checking by an independant Payroll specialist before I would agree to anything.

[alexander72]

Call Joy Yetkin at HArris and Co Accountants in Northampton  - she is the Jedi of payroll and HR...... mention my name and she will help you (James Alexander) she should be able to assist. 

[jeff oakley]

This gets more confusing. Re reading your first post, you handed in your notice and they paid you some money on that day? If so did they give you a pay slip?

 

Then a month later they send you 4 weeks money, your notice with P45. Did they then send another pay slip which tells you what every bit of money is four, i.e wages, lieu of notice, outstanding holidays, deductions for tax.

 

They then ring up and tell you they have overpaid you by £800 and want it back, any paperwork?

 

You need them to fully detail what you were paid for work done up to your last day of work. Then what notice they have paid you and what they claim they should have paid you?

 

Again your contract of employment and terms and conditions, assuming you had one, would say exactly what they should have paid you.

 

It will not cost them a lot to claim back this money. They could do this via the small claims court for less than £100 as they would not need a soliciter if all their paperwork is in order. I may sound like a grump but if you expected a weeks notice, to spend 4 weeks notice is strange. If you expected 4 weeks notice why? If you are just trying to avoid paying back money you know was not yours I would strongly advise against it.

 

Remember if they do take it to court and win you will have a county court judgment against you which can have a negative effect on your credit ratings in the future on things like mortgae etc.

 

If the person that James has recommended cannot help you can use the Citizens Advice Beaurea for free and a call to ACAS could be useful, but in all cases you will need your contract and all relevant paperwork

[ACW]

Sounds like they thought they were making a PILON but that this was in effect gardening leave and thus taxable. If it was a compromise agreement or damages then it could be tax free.

On the basis if what you have said, it sounds like they thought you were on 1 months notice which they didn't require you to work, but then realised you were on one week. Holiday entitlement and pro rata remainder can also have effects.

I would ask them for a written expiation and calculation. They should provide this to you already. Overpayment may be covered in your contract. I would offer to pay back in as quicker way as is practical and reasonable otherwise you will end up doing it after a small claims court case.

[Evo,s 7SE]

I will get them to document everything and send it to me the contact I have had with them was with the site manager who is also a friend ringing me and telling me they have overpaid me and they want it back

I have said I need head office to ring me to discuss it no other contact as yet

[Wile E. Coyote]

On the basis if what you have said, it sounds like they thought you were on 1 months notice which they didn't require you to work, but then realised you were on one week. Holiday entitlement and pro rata remainder can also have effects.

I would ask them for a written expiation and calculation.

 

That's my gut feeling, although I did wonder if they'd maybe screwed up on overtime payments or didn't update payroll before the pay run was processed.

 

I think you're doing the right thing by getting a breakdown, but get them to put it in writing.  It makes it MUCH easier for you to get advice, either on here or elsewhere.