Pay Reversal from an Employer

I was working for a company past 2 years on Contract basis. I had taken a personal leave in the middle of my employment with leave without pay and I had got paid for all my annual leave for 4 weeks and no pay for 2 additional weeks.

Now after I have left the company, I got a random phone call from one of the team leaders asking for paying it back which is nearly $2.5k. They said that they have done an audit and I have been overpaid.

Any suggestions what can be done so I do not end up with funds taken out of my account or how do I get this resolved. I can see they have forwarded this to recoveries team.

Any help would be highly appreciated Team!!!

Comments

  • +2

    So did you get overpaid or not? "I had taken a personal leave in the middle of my employment with leave without pay and I had got paid for all my annual leave for 4 weeks and no pay for 2 additional weeks"

    • Sounds like yes to me…

      • @jimothy: what do you mean cuzzy!!!

    • I am not sure to be honest, its been a year since that happened & i had spoken to HR once as i remember & they had paid me less for 1 of the pays. I have done a lot of overtimes for them without getting paid too but I did not even bother to add those extra hours.

      • I have done a lot of overtimes for them without getting paid too but I did not even bother to add those extra hours.

        Does not matter.

        If you didn't log it, and they didn't have a facility to handle OT then none of this matters. What matters is if you did get overpaid or not, which it sounds like you did..

  • +3

    Arrange to Pay it back @ $1 per week

    • +1

      that sounds like a good plan to get out of financial stress. Maamaa Miaa

      • Inflation will take care of that and you won't feel a thing.

    • +3

      That's not as smart as it's sounds. In doing so you've agreed that you owe them. Better off ignoring them. It's around $1000 in court filing costs, plus their lawyer's time.

  • +4

    Tell them that should even out the extra hours.

    It will likely cost them more to take you to court and prove that you were overpaid.

    • +1

      It will likely cost them more to take you to court and prove that you were overpaid.

      Logic like this does not apply to companies. They will gladly spend more money at court or other endevours.

  • +2

    Ignore them

    But… if you want to follow up, ask them for the hours worked vs paid vs leave taken etc…… and no they can't direct debit your account, it will need to be a written payment arrangement between you guys.

  • +3

    wait till they write to you requesting the money, then respond with "I have reviewed my hours worked and pay statements, and have found that I have been underpaid by $5,000. how soon can you send me that money. thank you"

    fight fire with fire.

  • +1

    They can’t just take funds out of your account, so no need to worry about that.

    I’d just ignore it, it was their mistake and it’s weird to ask for it back for what is a relatively small amount. They had their chance to pay you properly in the first place.

  • The advice to "ignore them" or "invoice them for your OT" in this thread is hilariously bad and plain wrong.

    A company can't just take money out of your account, that's not how it works.

    GoldenDragon888 listed some good resources that cover off what you're legally required to do.

    I guess what you need to ask yourself is, did they actually overpay you? If the answer is YES and you decide not to pay it back and ignore them, it doesn't magically stop there.

    They could get a court order and pursue it further, do you really want to get caught up in that sort of mess?

    Additionally, depending on what industry you're in, could this damage your reputation? If it's a small tight knit industry like tech in Sydney, you may find yourself blacklisted because word gets around pretty quick. YOu'd be surprised who knows who in small communities. Is that risk worth $2500?

    If you really were overpaid, then you could work out a repayment plan with them that is stupidly small and say that's all you are financially able to commit to.

    Something to consider.

    • -3

      “They could get a court order and pursue it further, do you really want to get caught up in that sort of mess?”

      LOL. What nonsense. It would cost more than the $2.5K they are owed and costs would not be awarded.

      You have no idea yet you have a go at others.

      OP should in the first instance ask for a copy of the audit to ensure he’s not receiving any more nonsense info from people. Why would anyone believe what a business says without absolute proof

      • -1

        LOL. What nonsense. It would cost more than the $2.5K they are owed and costs would not be awarded.

        Businesses do not always act logically. I'm not saying they would do it, but it's not outside the realm of possibility that they would. I've seen businesses spend more to recoup less just for the sake of saving face, setting an example etc.

        You have no idea yet you have a go at others.

        TIL saying someone has provided bad advice is "having a go".

        Touch some grass.

  • +1

    Ignore them. I am a Manager and I have cases like that and nothing happened. Payroll will send them email CC-ing me to pay them back but nothing happens. Gone in the wind.

  • +1

    Just be careful on repayment as you have paid tax on that money (or have commited to paying tax on that amount).

    Id request to see a detailed accounting of this error plus their EBA on repayments.

    https://www.fairwork.gov.au/pay-and-wages/deducting-pay-and-…

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