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Re: Told I've been overpaid Posted on: Thu, 8 May 2008 10:17:52 +0000 (UTC)

On 8 May, 10:53, David wrote:
> On 8 May, 06:55, "Top Man" wrote:
>
> > At my workplace I do extra training work with students for which I get a=

> > small amount of money extra.
>
> > In February I got a little more more than normal (about =A3400) but this=
was
> > covered by a letter from my employer telling me that I was to receive th=
is
> > higher amount a few weeks before.
>
> > Yesterday I was told that my employer made a mistake and the amount paid=

> > should have been what it normally is!!! They will recoup the extra pay b=
y
> > not paying me for the extra work I do until the money is repaid.
>
> > Is this legal? After all I have a letter from them saying that was the m=
oney
> > to be paid to me and that's what I got!!!
>
> > TM
>
> An interesting and potentally complex issue which hasn't as yet been
> at all adequately answered - but what's new !!
>
> Generally, a =A0person making a payment under mistake of fact may be
> estopped from pursuing recovery of the overpayment. For this to
> happen, three conditions must be satisfied. First, that the payer (the
> employer) in some way represented the payment was actually due to the
> employee. Secondly, the payee must show that this inaccurate
> information led him to believe he was entitled to the money. Thirdly,
> the payee must show that because of the mistake, he changed his
> position in reliance upon the payment so as to make it inequitable for
> him to repay the money (Chitty on Contracts, 25th Edition, para 1961).
> This may well be the case with you and you might well politely warn
> them to avoid deducting the overpayment on these grounds.
>
> Unless your contract of employment specifically gives the employer the
> right to deduct from your pay any overpayments made in error your
> employer cannot lawfully do so and it's just a civil debt and possibly
> not enforceable for the above reasons.
>
> But if your contract does - and many do - it's much more complex but
> still probably worth trying to rely on the above, although your case
> would be much weaker.

Well to explain further:

I am a teacher in a school and obviously paid as such. I do training
for students for which the school pays me a fee per student for
training them (not part of my contract) I usually get the payment
twice a year, in February and July.

In early February I received a letter saying that I would receive the
payment (it was higher than normal (about =A3400) but I just thought
that the rates had gone up). The payment was added to my normal salary
in February.

Yesterday I am told that the payment was in error (due to a mis
payment to the school from the University from which the students come
and that other staff should have received a proportion of the payment)

I have been informed that my payment due for July will not be
forthcoming (even though I am doing the extra work!) as the school
needs to recoup the overpayment? I was however told that the extra
payment made in February was 'legally mine'!!! So if it is 'legally
mine' then why are they trying to recoup it?

So should I seek further advice on this matter??

TM
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