I was working for a cash and carry company until 30 august. They terminated my employment. Since terminating my employment they have sent me a letter saying I was overpaid by £507.21. Am I legally obliged to repay them the money.

  • Sorry, but we don't do legal advice here; talk to a lawyer or if you're in the UK, your local Citizens Advice Bureau. – Philip Kendall Sep 29 '16 at 10:07
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    Regardless of any legal obligations, which will be properly answered by a lawyer and not by me, you should return it right away. What if this was the other way around? I assume you'd like to have your money back. On top of that, why burning bridges with employers? Or even worse, why have a bad reputation in the sector? No matter if it's £500 or £2M. – Charmander Sep 29 '16 at 10:20
  • @PhilipKendall this is the level of legal advice, as it is Pima fascia. Obvious on it's face that you can't keep what isn't yours. – Old_Lamplighter Sep 29 '16 at 12:11
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    In short, yes. Would they come after you for that amount? Depends on if you are local and if they really want it. If your overpayment letter was from a law firm, expect a follow up really soon. Ultimately the question is if you knew you were being overpaid and ignored it. Perhaps payroll made an error but even if they did make that error that doesn't mean you can keep that money. – Dan Sep 29 '16 at 12:40
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    "Employer claims you have been overpaid" means nothing. You don't have to pay any money just because they say so. However if the employer actually has overpaid you, then you need to pay it back. There are exceptions. – gnasher729 Sep 29 '16 at 13:14

Yes you are legally obliged to return the money, especially if you know you have been over paid - have you worked out whether the over payment is in-fact an over payment or not using your own calculations?

Money paid to you in error is not yours (this is a long established legal fact in the UK, but my answer is not legal advice), and if you keep it then you can be prosecuted for theft.

I suggest you contact your former employer to offer to return it now.

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