In most circumstances an employer has the right to claim back money if they've overpaid someone. They should contact the worker as soon as they're aware of the mistake.
If a worker notices an overpayment in their payslip, they should talk to their employer as soon as possible.
Agree how the money is paid back
An employer should not deduct money from someone's wages without letting them know.
The employer should talk to the worker first and agree how the money will be paid back.
For example, if the employer recently made a simple overpayment, they could let the worker know that they'll deduct it from their next wages. They could also agree to pay the money back a different way, for example by bank transfer.
If the overpayment was a large amount or over a long period of time, an employer should:
- be flexible and fair claiming the money back
- agree a repayment plan – this can help the worker manage their finances
Contact the Acas helpline to discuss your options if you:
- cannot agree a repayment plan
- believed you were being paid the correct amount and will struggle to pay the money back
Looking after a worker's wellbeing and mental health
In some situations, a worker might be worried about paying back money. This can be stressful.
It's important that employers consider the wellbeing and mental health of their workers.
Looking out for workers' wellbeing and offering support can help prevent:
- absence
- mental health problems arising
- existing mental health problems getting worse
The employer should share any specialist help available through work. For example, through an employee assistance programme (EAP).
Find out more about:
If someone has left the organisation
If a worker owes money but no longer works for the organisation, the employer should contact them. They should explain why they think they owe them money and how much.
If the former worker refuses to pay back the money, the employer might be able to make a court claim to get the money back from them.
Find out more about making a court claim on GOV.UK
Contact the Acas helpline
For more advice about overpayments and paying back money, contact the Acas helpline.