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Overpayment to Former Employees

Overpayment to employees, in particular former employees, is more common than you think. It can range from a simple payroll error such as miscalculating a payment of wages and or bonus/commission to seeking recovery of holiday pay, benefits such as a car allowance or train season ticket and even training fees from a former employee.

 

If the overpayment has been made to a current employee, you have certain rights under the Employment Rights Act 1996 to deduct the overpayment from the next payroll process. However, what happens if the overpayment relates to a former employee?
 
The first step is to write to the former employee requesting payment of the overpaid sum. If you are not sure what to include in your letter, please download our free guide which provides you with template letters.

 

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Overpayment To Former Employee

4 template letters to different types of overpayments

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If the letter does not result in payment, you may wish to take legal action to recover the sums owed to you. The different stages of the legal process are set out below and over the last 20 years we have helped many companies collect overpayments to former employees by taking legal action.

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The legal process is cost effective due to our simple fixed fee package set out below. You also retain control of the cases through our online CaseManager and you instruct us when you need us to take action. We will work with you and the former employee to ensure your money is collected as quickly as possible.

 We have achieved a high level of success through our expert debt collection knowledge in respect of overpayments to former employees as was seen in this recent case we worked on for our client. Therefore, if you have a made an overpayment to a former employee and require assistance, please do not hesitate to contact us or sign up for free today.

 

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so you can start recovering your money immediately

 

Footnotes

  1. Based on you giving the former employee 14 days to make payment in accordance with pre-action protocol guidelines.
  2. Based on you instructing Lovetts immediately upon expiry of your letter to the former employee.
  3. Based on you issuing proceedings immediately upon expiry of the claim form, the Court serving the claim form within 5 days and the former employee not filing an acknowledgment of service or defence. If an acknowledgment of service is filed, the former employee would have a further 14 days to respond or make payment.
  4. Based on you requesting Judgment immediately where there has been no response or payment of the claim.
  5. Enforcement action can be commenced immediately but an Enforcement Officer has to give the former employee 7 days grace before making an attendance at the address at which they reside.
 

Note

The costs quoted are fixed based on the claim being undefended. The costs are also exclusive of VAT. Court fees on the claim will vary depending on the size of your claim. Further details can found at www.lovetts.co.uk.

 

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