HR Advice needed

[cambsno]

On behalf of my wife following a meeting with her manager earlier today.

After the birth of our son, she went back to work for 3.5 days a week - approx. 30 hours rather than her previous full time hours of around 37.5. She went back in Nov 08 and was obviously paid less to reflect less hours. In April, she had a small pay increase and payroll recalculated her salary. What they did however was put her down as full time hours instead of the 30 hours. She put her extra money down to a backdated pay increase that month (April 09) and thought nothing of it.

Obviously, she should have checked her payslip each month and questioned the extra pay but didnt. Now they have noticed it they want that extra (some £4500) paid back.

Is there anything we need to know? How quick do we need to pay the money back? As some of that £4500 was tax, do we need to do anything to claim that back? While she should have noticed, can they demand all that money back seeing as they made the mistake?

Any advice welcomed.

 

[stokecity_m]

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How quick do we need to pay the money back?


While she should have noticed, can they demand all that money back seeing as they made the mistake?

You should be allowed to pay it back at a reasonable rate - normally most companies want it paid back within a year.

and unfortunately they can demand the money back.

 

[SarahLee]

Hi Simon,

Unfortunately the company is legally entitled to ask for that money back
But she should have a chat with them, most companies will be reasonable in agreeing to a sensible repayment plan.

In terms of tax it should sort itself out.
The normal way for a company to reclaim would be as a payroll deduction from the gross (pre-tax) salary.
The only way that this will make a difference is if the salary over-payment in previous years / salary under-payment after deductions this year meant that her total salary fell into different tax brackets for each year.