In Ridge v Her Majesty's Land Registry EAT/0098/14, the EAT held that the recovery of an overpayment of wages made the previous month caused by unprocessed absence constituted a deduction for the purposes of s.8 of the Employment Rights Act 1996, and therefore had to be clearly set out and explained on the employee's payslip.
The Employment Appeal Tribunal (EAT) has held that, where an employee's pay for a period is reduced to recover an overpayment for a previous period, that reduction represents a deduction that should be identified on the employee's payslip.
Use this overpayments workflow to deal with an accidental overpayment made to an individual where the overpayment is discovered only after they have left the organisation.
Use this overpayments workflow to deal with an accidental overpayment made to a current employee.
HR and legal information and guidance relating to overpayments.