How to deal with recouping overpayments

Unfortunately payment errors can sometimes occur, resulting in employees being paid more than they are entitled to. It is imperative that businesses act quickly and decisively, taking swift action to recover money while also managing delicate employee relations.

Most businesses have deduction clauses in their contracts which mean that they can take the equivalent sum from an employee’s future pay, typically to be repaid in a series of instalments.

Deduction clauses in employment contracts mean that businesses do not have to go through the courts to recover funds.

If a deduction clause is not in place, an employer must go to court in order to recover the funds. In most cases the employer will be entitled to take the money back, but it should act quickly.