Past employer claw back process

metamorphosis

Hi All,

I am hoping somebody can assist and point me in the direction of relevant information about the below scenario. Big multinational corporation.

July 2015: Hand notice to current employer and manager. Paper trail. Email and response.
August 2015: Receive last paycheck, start new employment.
September 2015: Still no P45 in my hands, contact previous employer who responds saying that there was a delay on their part giving my notice to HR/Payroll and that this would be actionned now. All on email.

Today: Previous employer/manager emails me saying that HR/Payroll got in touch. I was overpaid in my last paycheck because of their delay in sending my termination process to HR/Payroll. I was overpaid by x amount and they would like me to make a wire transfer to their account of this much.

Now, my take is that I was overpaid, I get that, I owe them money. However, given that this was an error on the company and I have a paper trail stating as much, can I delay this payment for now or come to agreement to pay at a later date / in payments? It's not a massive amount but cash is tight at the moment and it is not cash that I have available to give them. Are their any guidelines around this that people are aware of?

gandalf

Mail them back and say that given the time of year you are unable to pay the whole amount in one go and suggest a payment plan to them, maybe split the amount over three months from January?

It is their mistake so they should be flexible on how it is paid back imho.

metamorphosis wrote: »

Hi All,

I am hoping somebody can assist and point me in the direction of relevant information about the below scenario. Big multinational corporation.

July 2015: Hand notice to current employer and manager. Paper trail. Email and response.
August 2015: Receive last paycheck, start new employment.
September 2015: Still no P45 in my hands, contact previous employer who responds saying that there was a delay on their part giving my notice to HR/Payroll and that this would be actionned now. All on email.

Today: Previous employer/manager emails me saying that HR/Payroll got in touch. I was overpaid in my last paycheck because of their delay in sending my termination process to HR/Payroll. I was overpaid by x amount and they would like me to make a wire transfer to their account of this much.

Now, my take is that I was overpaid, I get that, I owe them money. However, given that this was an error on the company and I have a paper trail stating as much, can I delay this payment for now or come to agreement to pay at a later date / in payments? It's not a massive amount but cash is tight at the moment and it is not cash that I have available to give them. Are their any guidelines around this that people are aware of?

Eoin

I believe that any guidelines are mostly around payroll deductions to correct an overpayment. But as you're not expecting any more pay checks from them, that's not relevant.

It also means they don't really have any leverage to insist on instant repayment. I'd be inclined to email them and just tell them what your repayment plan is.

Bandana boy

There are tax implications here as well
you will have to pay them back the full amount they overpaid you by not just the amount you recieved after tax , you will then have to seek to get the tax back on this yourself.
Not 100% sure on how this works from a tax perspective if you pay this back next year ?
You could end up waiting till end of the tax year to get this returned.

daheff

Bandana boy wrote: »

There are tax implications here as well
you will have to pay them back the full amount they overpaid you by not just the amount you recieved after tax , you will then have to seek to get the tax back on this yourself.
Not 100% sure on how this works from a tax perspective if you pay this back next year ?
You could end up waiting till end of the tax year to get this returned.

While this is correct, you should ensure that they reissue a corrected P45 before year end. Otherwise you will be stuck out of pocket.

I'd be getting them to fix this asap. Otherwise your taxes are going to be a nightmare to deal with.

AFAIK if they fix the P45 then you only repay them the amount received. they will claim back the overpayment of tax to revenue