Deal with an accidental overpayment made to an employee

Key points

  • An employer may make an accidental overpayment to an employee in relation to, for example, his or her basic pay, commission or expenses. This is not unusual where the employer operates a computerised payroll, or it could be the result of a clerical error.
  • Where an overpayment has been made, the employer will, in most circumstances, be entitled to recover the overpayment from the employee.
  • The easiest way for the employer to recover the overpayment will be for the employee to repay it. However, there are other options open to the employer, including deducting an equivalent amount from the employee's wages, if the employee does not agree to repay it.

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