Overpayment of wages during illness

LegacyUser

Hello,

I had been victim to some workplace bullying and fell into a depressive state which the company didn't properly address.

Because of management's refusal to address problem, I went on the sick and provided medical certificates that the illness was due to depression.

I was off work for 6+ months and for that duration, my employer continued paying my wages. My pay slips were mailed out every so often in a bundle and I just believed it was at the discretion of management the payments continued.

Now I'm ready to return, they've recently determined the payments were accidental.
They've stated they're obliged to recover the full amount because it was, they claim, an accident. They want me to accept a proposal which will see them fully reimbursed but I know, in any small amount, that could take years.

I believe the management knowingly paid the money as they mailed me my pay slips.

Am I legally obliged to repay the money even if they knew I was being paid?

I certainly don't have it anymore and it never occurred to me they paid the money accidentally.

Never once did I believe the money was being paid by accident and this appears to be mistake by management or payroll.

Mrs OBumble

Mmm, me thinks you need proper legal advice.

It may be that a letter from a lawyer will make them change their minds.

OTOH ... if you agree to pay back a tenner a week for a long time, you might have a better relationship with them overall, assuming that you want to keep working there.

Also, as part of the discussion, ask them how the tax implications of this overpayment / re-payment will be managed .. this could get very, very messy especially with PRSI.

Eoin

79872342123 wrote: »

I believe the management knowingly paid the money as they mailed me my pay slips.

Do management do this manually? Is it not possible that either they or payroll made a mistake in an automated process?

79872342123 wrote: »

Am I legally obliged to repay the money even if they knew I was being paid?

In general, an employer is entitled to reclaim overpayment of wages.

LegacyUser

Eoin wrote: »

Do management do this manually? Is it not possible that either they or payroll made a mistake in an automated process?

From what I understand, the manager approves or disapproves payment of wages at the end of each week.

There are policies and procedures the manager needs to follow when an employee is out sick. It usually requires completion of an OB1 from the Social Welfare in claim of illness benefit.

In the past, I've been paid for sick days so I just presumed it was at the discretion of management and no different on this occasion. There didn't appear to be anything "accidental" about the payments when they were continuing to send me pay slips to my home address.

During a meeting with HR about my absence, they even indicated their concerns about the amount of payments made so they were completely aware.

At this meeting, they didn't issue any threat of legal action to recover the money paid up until that date. This was after 4 months out of work yet they waited another 2 months before stopping payment and threatening to take legal action for recovery of full amount...which in 10 euro installments per week would literally take years.

In general, an employer is entitled to reclaim overpayment of wages.

I have read this too but I don't believe this overpayment was "accidental" at all.
It feels like management made the mistake and now covering it up as an accident in order to pressure me into paying the money back, which I no longer have.

Irish_Elect_Eng

This is a case where the employer and employee have the same rights.

• If an employer accidentally underpays, the employee has the right to have the wage payment(s) corrected, with the underpayment being paid in a reasonable time.
• If an employer accidentally overpays, the employer has the right to have the wage payment(s) corrected, with the over-payment returned in a reasonable time.

The payments are a separate issue to the other things that you are working through with your employer.

No Pants

What is the company's policy in relation to sick pay?

Doom

I would say they were paying you your wages just in case a claim was lodged (it would show they cared about you), now that you're back they now know you will not make a claim, so they decide (very sneaky) paying of wages was an error.... call their bluff!
Paying wages when off sick is not a wage overpayment......

Yawns

6 months wages would be a lot of money involved and a number of years of repayments at a low rate. A solicitor would be the best course to take right now. As someone pointed out, there are also tax implications. The money spent on a solicitor now, could save you in the long run.

Deliverance XXV

Very careless of them if it was unintentional.

Solicitor is the only route here to make sure everything stays above board. Most likely, if your contract states that you are not eligible for sick pay for period X, then there will have to be an agreement to pay it back over a sufficient period.

Might be important but OP, did you claim any state benefits/payments during the period? If you didn't and any ruling goes against you, then you might be eligible to claim for state benefits during that period.

bbam

Glad to hear your feeling better and ready for work again..

I inherited a similar case from a previous manager, and the big thing I couldn't understand was how someone thinks that being paid by work and claiming from the state while off sick will just pass by without recourse.

I'm not saying this was the case for you OP, but were you claiming Illness Benifet and receiving full pay from work? The person I was dealing with was claiming €208 in benifet and their full wages due to a clerical error by my previous colleague. We came to an agreement where a weekly repayment was docked from their wages at source for a set period of time. Worked fine.

For your own sake I'd advise coming to an acceptable agreement quickly so you can put it behind you and try not let it take away from your current wellbeing.