We have recently discovered that we’ve been overpaying a number of our employees. What's the legal position? Can the Company get the money back from them?

Posted in : First Tuesday Q&A NI on 1 March 2011
Emma-Jane Flannery
Arthur Cox

If the employees are still working for you, the first and most obvious avenue to consider is recovering the overpayments from their earnings. Making deductions from employees’ wages is unlawful under the Employment Rights (NI) Order 1996 unless authorised by statute or the employee’s contract or where the employee has given their express written consent. However, you’ll be happy to know that deductions to recoup an overpayment are excluded from the general prohibition under ERO.

That said, the employee may try to resist the recovery of the overpayments if they can argue that they have, in

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Back to Q&A's This article is correct at 02/09/2015

The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.

Emma-Jane Flannery
Arthur Cox

The main content of this article was provided by Emma-Jane Flannery. Contact telephone number is 028 9023 0007 or email Emma-Jane.Flannery@arthurcox.com

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