What is the correct/proper procedure if you have overpaid an employee in one month (actually for two consecutive months)? For May and June they should have had some days of sickness deducted from their pay, but....due to not being told about it...I paid them their full monthly salary.
Hi
Firstly I would notify the employee that there has been this overpayment. With regard to claiming back the money that has been overpaid a lot would depend on what was in the employees contract of employment because there may be guidance in there, it often is.
If the amount is quite substantial you could negotiate with the employee by deducting it over a couple of months
Regards
Mark
Many thanks Mark. She already knows about the overpayments. It was over a couple of months May and June and my client told me to take it all off July's payment. I had a quick look at the employee's contract of employment and there's nothing in there about over/underpayments. Just thought it was a little harsh deducting it all from one month, but that's what the client asked me to do.
Hi Pauline
That does seem very harsh by the employer especially that the overpayments were for two months you would have thought that they would have been taken back over the same period
Regards
Mark
There is ussually a clause in the contract of employment about notification of sickness etc
I don't think the employee has a leg to stand on however, as it appears that it is lawfull to make certain deductions, without any concent or legal authority. Overpayment of wages being one of them.
Exempt deductions
The employment legislation also defines a number of kinds of deductions that fall outside of the statutory restrictions on deductions. In other words, your employer may make any of the following deductions without authorisation under your employment contract or without your written permission in advance:
your employer has made an overpayment of wages or business expenses to you, for any reason, and wishes to recover the overpayment
your employer is entitled to deduct a sum of money from your wages under the provision of disciplinary proceedings that operate under a statutory provision, e.g. in the fire service or police force
your employer is required under a statutory provision to deduct monies due to a public authority, e.g. a Council Tax Attachment of Earnings Order
you have authorised your employer in writing to deduct amounts from your wages to be paid to a third party, where the third party instructs the employer how much to deduct
you have been involved in a strike or other industrial action and your employer decides not to pay you because of your involvement
you have authorised your employer in writing to deduct money from your wages that is due to your employer under an order of a court or tribunal.
