I Overpaid My Domestic Staff Can I Reclaim It?

I Overpaid My Domestic Staff Can I Reclaim It?

To some extent, the answer is ‘Yes’, but it can depend on circumstances.  If the issue is the result of a recent simple overpayment, you have the right to deduct money from an employee’s pay. You should speak to those affected and let them know how you will reclaim it.

However, if the overpayment was a long time ago, or overpayments have been going on for several weeks or months, you should be flexible and fair in claiming the money back.

Agree a repayment plan if needed but if this cannot be agreed on, you should not simply deduct money from their wages. The law in this respect can be complicated and you should seek professional advice.

In additional to a reclaim following a recent simple mistake, you can reclaim the money on the following conditions:

• their employment contract specifically allows it
• it’s been agreed in writing beforehand
• it’s required by law – for example Income Tax or a court order
• missed work to be on strike or take industrial action.

If you only discover the overpayment after your former employee has left your service, contact them and explain why you think they owe you money and how much.

If they refuse to pay you back, you might be able to make a court claim for money on GOV.UK.  As always, we at The Graham Agency advise you to take sound professional advice before any action.

Your deductions must not lower someone’s pay below the National Minimum Wage, unless the deduction is for among other aspects: tax or National Insurance, something they’ve done which their contract says they’re liable for (such as damage to a vehicle through reckless driving), repayment of a loan or advance wages.

We are grateful to ACAS the Advisory, Conciliation and Arbitration Service for this information.

The Graham Agency, keeping you informed.