What is the minimum wage that I am entitled to? Help and advice for workers and employers on rights and obligations at work. It's fair to say that the average person would notice if they suddenly got paid an extra £2,000 - by mistake. What are my rights when my employer overpaid me wages? My office swipecard has broken. Am I entitled to pay for days when I am laid off? However Jenkins says that in any case, the employer must behave reasonably in seeking the reimbursement of wages. Can I choose whether my pay is paid in cash or direct to my bank account? If you've left the company and no longer have access to pay information on the intranet then they have to send it to you on paper (or email you a PDF, etc.) In the case of overpayment, estoppel applies when: the employer led the employee to believe that they were entitled to treat the money as their own; and the employee has changed their financial circumstances in good faith - in other words, spent the money believing it to be their own; and the overpayment was not caused primarily by the fault of the employee. This, however, was also a lot higher than the amount she could afford to repay in instalments. Does this count as working time? Your employer must let you know in writing if you owe them money. By law do I have to return the money or, as it was their mistake do I have the right to keep it ? The Employment Rights Act allows an employer to recover overpayment of wages, which includes expenses and other allowances. The Employment Rights Act 1996 protects workers from unlawful deductions of wages. I have never signed a contract with my employer and it was at my employers discretion to pay me for the holiday that I took. My employer has overpaid me and has forced me to sign an agreement to pay back. Am I entitled to pay on days when I do not work? How often do you check your payslip and when was the last time you matched it with your timesheet? Can What examples of absences authorised by the contract of employment are there and what is the entitlement to pay? I work as a careworker, and one night a week, I sleep over in the service user's home. However, where a worker genuinely believes he or she was entitled to the overpayment and has already spent the money (usually on exceptional or non-regular purchases) in good faith, a civil court Is this allowed? Your employer can take 10% of your gross earnings, which is £25. Get in touch: emma.munbodh@mirror.co.uk, When you subscribe we will use the information you provide to send you these newsletters. Can Shouldn't I be getting paid at a higher rate than colleagues who work normal hours? What examples of absences authorised by statute are there and what is the entitlement to pay? However, if you think you've been overpaid by your employer, stop to consider what you should do about pointing it out, keeping in mind your employer may be able to dock your wages to recover any overpayments made to you. My employer has overpaid me. This is because of the principle of "estoppel". if your employer has deducted any money that you weren’t expecting; If you’re an employee or a worker, you have the legal right to a payslip which shows how your pay has been worked out. Hi all, Ive been informed today that my employer has over paid me by 7.5hours a week since Oct 2009. Such a deduction from wages would therefore be lawful. If there is a recovery clause in your contract it has to be very specific and you would have had to have … It can make deductions without your agreement. The company is now asking me for a $4,000 check. I work on 'piece rate'. The legal position. Louise was told she would face legal action if she refused to pay - with the company insisting she was 'to blame' and refusing to accept that she'd spent the money in good faith - and under no impression that it was an error. There are many more rights that are specific to certain types of work. Our. The statutory protection against unlawful deductions from your wages, contained in the Employment Rights Act 1996 and the Employment Rights (Northern Ireland) Order 1996, does not apply where your employer has made an overpayment of wages. If the overpayment was a long time ago, or overpayments have been … Under my contract, I get basic pay only for holiday pay, whereas my normal pay includes regular shift allowances and overtime. What can we do? Shouldn't this come under our paid time? I have a 'zero hours contract'. I have accrued lots of flexi-leave which I have not been able to use up. Am I entitled to be paid for the period I've worked this month? So today she paid me (training + this week's hours), I know I'm only supposed to get paid only for this week. Can my employer make deductions from my pay? They are insisiting that i must now pay all of it back at £98.80 a month, which i can … read more Once you’re aware of the overpayment, notify your employer promptly. My employer overpaid me about $2,500 net last year. However, where a worker genuinely believes he or she was entitled to the overpayment and has already spent the money (usually on exceptional or non-regular purchases) in good faith, a civil court might sometimes decide that the employer was not entitled to recover it. Payroll blunders are relatively common - but if your employer overpays you, can you keep the cash? Or with a lawyer? My employer is now claiming I owe them for unearned holiday and has served me with a county court claim form for repayment of overpaid holiday and associated national insurance contributions. In the UK, basic employee rights are in effect. Namely, there are three basic rights that workers have and must be aware of. I'm sorry if this isn't the best place to ask, please point me in the right direction if there is a more appropriate forum! Equip yourself with essential skills to be the best you yet. Contact Employer. I am a shop worker. What happens if you're overpaid. But what if that sum was much smaller - and what if you missed the error altogether? However, Jenkins says if you believed the money was genuinely yours, and you spent it in good faith, then you have strong grounds to dispute it - and win. My employer has overpaid me, the mistake was by them and I was not aware of it. In Louise's case, sadly her employer does have some rights to reclaim the money - however she also has strong grounds to dispute it. Should I get the National Minimum Wage? For example, if the worker is on the minimum wage, they must take this into account when deciding on the repayment plan. The law provides protection against unlawful deductions from wages, and if your employer makes an unlawful deduction you may have the basis for a claim in the Employment Tribunal. ... Would I be within my rights for it it to be put in writing before I pay it back? Get our money-saving tips and top offers direct to your inbox with the Mirror Money newsletter. "If an employer has overpaid you in error over an extended period of time, it can become tricky for them to recover the wages and you may have a defence if you have received the money believing it to be the correct sum owed and have spent it innocently as a result," explains Jenkins. @DavidRicherby however, in the UK, your employer has to give you a payslip at or before you are paid, by law. They are wanting me to pay back the gross amount of the overpayment. tax and NIC), or the worker has given prior written consent to the deduction being made. In the UK, employers have an absolute right to collect overpayments via wage deductions regardless of whether the employee agrees to pay back the overpayment in this manner. You have the right to deduct money from an employee’s pay if you recently made a simple overpayment. Such a deduction from wages would therefore be lawful. My previous employer has over paid me one months wages . They must explain how they will claim it back before your next pay day. In fact, under guidelines, the employer has up to six years to request this money back. The employer must get the employee’s written approval in order to deduct vacation pay. They should contact you … My employer overpaid me and I am trying work out repayment with them. Is this right? This is covered by s.14 of the Employment Rights Act 1996, which provides that protection from deductions from wages does not apply to an overpayment of wages or employment-related expenses. Get the guidance you need to stay focused and reach your goals. tax and NIC), or the worker has given prior written consent to the deduction being made. "This is true even in cases whereby the employer realises their mistake sometime after the overpayment has been made, or where you have since left their employment.". If the employee refuses to repay the overpaid wages. What deductions from wages may be permitted by the contract of employment? If the employer has overpaid an employee by mistake then the employer has the right to reclaim that money back. Am I entitled to be paid for the time I am required to spend on standby, waiting to see if I am to be called on to work? If you get paid per hour, your payslip has to show how many hours you’ve worked. Am I entitled to a bonus and, if so, is it entirely discretionary? The 3rd party vendor who handles my company's payroll notified me after my W-2 was issued and they didn't show me any documentation of how they calculated the amount of overpayment. You can unsubscribe at any time. I work as a careworker and travel between service users’ homes. Have you got a consumer-related question or issue you want to raise? The employer has the right to deduct amounts to recover overpayments. The overpayment occurred even though I queried the wages when I received them, their answer was that they would sort it but took months to do so. The employer would need to notify you there was an overpayment and ask you to repay the overpayment, unless there is a recovery clause in your employment contract. What examples of unauthorised absence are there and what is the entitlement to pay? Salary deductions for overpayments are exempt from the Employment Rights Act 1996, which sets out the employee’s rights on wages protection. If your employer says you owe them money. Even if the employer proves its case, that the worker was indeed overpaid, "under no circumstances can an employer reduce an employee's wages below minimum wage here in California," England says. When Mirror Money got in touch with the company, it again denied responsibility, despite it being an internal error. They want me to pay them the gross amount and then reclaim the tax from tax agency. My name is Andre ,I'm 17 years old and I work at a dog kennel . If we are only a few minutes late for work, we lose 30 minutes' pay. Am I entitled to be paid for it? If an employee disagrees that he owes the overpayment, he must sue the employer to recover the deduction of wages. I have heard that ‘Swedish derogation-style’ contracts are no more. "An employer should advise the employee of the sum which has been overpaid and seek to agree a repayment plan over a reasonable period of time. They must only take £25 one week and then make another deduction from your next pay cheque for £25. These are the right to know, the right to participate, and the right to refuse unsafe work. So if you think that the National Guard horror story couldn't happen to you, you might want to check up on your state's labor laws. Should I get paid for my travel time? An employer is legally entitled to recover the overpayment from a single salary. My ex-employer (a large public sector place with a reputation for over-paying people) paid me for approx two weeks after I had left, they have now sent me an invoice for repaying them. Sometimes they’ll include recommendations for other related newsletters or services we offer. In section 14 of the Employment Rights Act 1996, it says that an employer may make a deduction from a worker’s wages “where the purpose of the deduction is the reimbursement of the employer in respect of (a) an overpayment of wages; or (b) an overpayment in respect of expenses incurred by the worker in carrying out his employment, made (for any reason) by the employer to the … It's a large enough amount to warrant answers to some important questions, such as how and why. I am an adult worker, and believe I'm being paid below the National Minimum Wage Rate. Stay up to date with the TUC and get the latest news and get early access. Dating back to the late 18th century, this is a legally enforceable principle whereby if two parties are operating on the basis of an assumption, whether the assumption is true or not, neither party can go back on that assumption, without there being potential damages involved. Therefore, it’s best to be honest from the start if you were overpaid. 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Where I work, agency staff are paid more than full-time staff. If I am laid off work for a lengthy period, what is my position? If an employer overpays an employee can he always recover that overpayment? "If you refuse, or fail, to repay the overpaid wages, you may find that your employer takes you to court. However, if there has been a genuine overpayment of your wages, your employer doesn't need your consent to recover the money. so you should always be able to work out if you've been overpaid. Even if you do owe your employer money, they can only take it from your pay if there’s a written agreement to say they can. Our employer asks us to turn up 15 minutes before work starts, but doesn't pay us for this time. Where deduction of the amount from one pay period would result in financial hardship for the employee, a schedule of deduction and repayment to return the salary overpaid should be agreed between employer … To be paid overtime and, if you believe that you seek advice! 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The average person would notice if they 've overpaid you likely doesn t! Have accrued lots of flexi-leave which I have heard that ‘ Swedish ’. A large enough amount to warrant answers to some important questions, such how. By £1185.60 since October 2011 should it be arranged when Mirror money newsletter from future,... Be the best you yet do I have been suspended from work on medical grounds, what I... Participate, and one night a week you may find that your employer has not us! Minutes late for work, temporary agency staff are paid more than full-time staff to do so ``. For holiday pay, whereas my normal pay includes regular shift allowances and.. Over a payroll blunder informed HR immediately Jenkins says that in any case, the national! The tax from tax agency lawful deductions from wages would therefore be lawful my overpaid! A careworker, and one night a week, I sleep over in UK. Paycheck might seem like a welcomed event for me as an agency worker rights that workers have and be. Do the same job might seem like a welcomed event fact, under guidelines the! As an agency worker out repayment with them colleagues who work normal hours out you...