Overpayments: Deal with an accidental overpayment discovered after employee has left organisation

When to use this workflow

Use this workflow to deal with an accidental overpayment made to an individual where the overpayment is discovered only after he or she has left the organisation.

The employer must act quickly once it discovers the error and attempt to obtain the ex-employee's consent to a deduction being made from his or her final wages or salary, where this is possible, or to a repayment or series of repayments.

This workflow should be used only where there has been an overpayment of wages or employment-related expenses.

This workflow is an example of a legally compliant process. Where your organisation's own procedures go beyond the procedure set out in this workflow, you should follow these.

Workflow authors: Produced by the XpertHR editorial team.

Key Steps

  • Consider if overpayment can be recovered in full or in part by making deduction from ex-employee's final salary
  • Make deduction
  • Review payroll procedures to ensure error is not repeated
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