Overpayment Letter From Employer
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FAQ
The general rule is that if an employer has overpaid an employee, the overpayment of wages should be repaid even if the mistake was the employer's. In other words, the employer is legally entitled to recover any salary overpayment from the employee.
The employer should talk to the employee first and agree how the money will be paid back. For example, if the employer recently made a simple overpayment, they could let the employee know that they'll deduct it from the next pay. They could also agree to pay the money back a different way, for example by bank transfer.
The Overpayment of Wages Letter should be used to advise an employee that he or she has been overpaid and by what amount. The letter sets down the terms on which the overpayment will be repaid and tells the employee the person to whom he/she should speak if they wish to agree alternative payment terms.
If the employer has overpaid an employee by mistake then the employer has the right to reclaim that money back. However, employees and workers are protected, under section 13 of the Employment Rights Act 1996, from any unlawful deductions from their wages.
