Payroll/HR incompetence. Overpayment AFTER leaving.

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bmount

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Sorry for really long post if you have some patience to read it, it may be of interest to any lawyers out there...

So.....my daughter took a 10 week placement in a large Bank to help fund Fe1 law exams, get a littke bit of experience and general spending before intense fulltime study again for March exams in anticipation of her law traineeship start date of Jan 2024.

The short Contract finished and states an end date of 22nd Jan. So she leaves on 22nd Jan, and her sociable and friendly colleagues gave her a nice send off. All good.

Internal processes seem to break down and it seems her manager (cant be certain) does not initiate the "Leaver" process to take her off the systems including HR, email and Payroll.

End of January she receives Full months salary.
Thinking this is unusual waits to see what happens end of Feb.

End of Feb she receives another Full months salary

Early March emails Bank HR and Payroll (3 people) to point out their issues and "to take me off the payroll as it may impact my taxes in my next job". She offers to return the February overpayment too.

With my suggestion, she goes into Revenue Myaccount and notices the employment with the Bank is not Ceased but Active.
So she Ceases it herself whuch you can do.

A generic "thank you for letting us know, I have forwarded this to Payroll" email received from the HR staff in the bank in reply to her email. They do not mention at all looking for the salary back.

Mid March she does Fe1 Exams.

End March she receives yet another Full months salary.

Early April emails Bank again and the email to the staff member who replied in March bounces back (left or fired maybe ?). In firm language reiterates to take me off the payroll, emailing HR also.
No communication from Bank in April.

End of April she notices zeroes in the payslip in Revenue Myaccount which looks like they have sorted this out.

*Yesterday* out of the blue receives an emailed Pdf letter from Payroll department to return ALL of the overpaid salary.

Of course due to pure neglect and utter incompetence of the HR and Payroll departments (and being a young student with no money too im sure she has spent half of it !) she has no intention of paying back a single cent. She may at a real push accept a hugely reduced settlement amount.

Ok so any help appreciated. This us a great forum thank you.

Should she even reply to the email/letter ?
She plans to reply next week pointing out all the opportunities they had to resolve this.

How do you articulate an email like this ?

Do we wish to engage a solicitor ?
Of course not, she is going travelling to Asia from June for the 2nd half of 2023 ( if exams are passed)

We cannot find any law or precedence on this at least online/google etc.

"Overpayment when you are no longer employed" is the key here


There is some articles on *overpayment while still employed* and yes in that case it is taken out of future salaries.

Thanks in advance.
 
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I can see the frustation in all this, down to someone's (within the bank) incompetence / break down in the internal processes - whatever reason. The one thing though is that she knew she was being paid in error and that it happened a number of times over a number of months. It was not her money to spend, idealy it should have been put aside at those times for repayment back to her previous employers.

How much of the money can she pay back, or is it all spent ? Why has she no intention of paying it back or even look for a discounted amount ? It's not her money to keep.
 
*Yesterday* out of the blue receives an emailed Pdf letter from Payroll department to return ALL of the overpaid salary.
What was out of the blue ? She knew at some stage the bank would get in touch surely ? You could offer half back but I suspect the law will be clearly on the banks side here. It's a bit like when someone notices too much money in their account because the bank in error put it into the wrong account. Eventually the people who spend it and don't own it end up in court for not paying it back.
 
*Yesterday* out of the blue receives an emailed Pdf letter from Payroll department to return ALL of the overpaid salary.
But It's hardly a surprise that they came looking for the money back though.

she has no intention of paying back a single cent. She may at a real push accept a hugely reduced settlement amount.
I'm assuming that this is a 10k+ figure, I can see a letter from their legal department requesting payment back which your daughter acknowledges receiving and I'd be surprised if they didn't follow up.
 
Hi,

I didnt ask how much she spent.
I was hoping not to receive the righteous/emotional/moral type replies here.

(what would you feel yourself as a young student ??)

I am only interested in the law here.

Only reply if you think you know the law.
 
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So ..person worked somewhere, left employment, continued to be paid due to former employers error. Now person is refusing to repay the money they were paid in error.

Isnt this theft if they refuses to return it?

How much we talkin?
 
Thanks but can we have some balance here.

What about the incompetence of the Bank ?
And non replies to emails and an offer to return February salary and absolutely no take up on that. What would you all have done ??

It is likely she may offer a settlement amount in a reply email to be sent next week after much consideration but it will be 20 to 30%.

The letter was extremely audacious. What bothers us is the bank made no apology for their incompetence.

Of course some money was spent, shes a student. I think this problem is compounded by the fact she is a student
 
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It is likely she may offer a settlement amount in a reply email to be sent next week after much consideration but it will be 20 to 30%.
An 'audacious' response! Good luck with her law career, she may get some court experience soon ...

She has acknowledged in writing that the money was not hers and is now proposing to keep the majority. A small processing fee for her time and inconvenience might be justified (of the order of €100 max), but anything beyond that would be taking the proverbial.
 
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Theres no point quoting me on that 20 30% figure, this is totally shooting the breeze on an anonymous forum.

I can sense there is not a person out there who thinks she should tackle this based on the way it was handled, or offer a low settlement then.
 
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My tuppence worth. Your daughter could be found civilly liable for the full amount overpaid should the bank choose to pursue it. It's hard to imagine the bank making a successful complaint that could lead to her being found criminally liable.

There's a bigger picture here though, your daughter's future employability.

If it were a daughter of mine I would be advising her strongly to engage with the bank, and to not expect them to budge on seeking the return of the full overpayment. They have her email(s) after all that will show she knew the money wasn't hers.
 
IANAL. By the end of March at the latest, your daughter had acknowledged in writing that she was (a) aware she was being paid salary she did not earn and (b) she knew it had to be returned. Despite taking another 2 pay periods to stop paying the salary the company is also very clear that the salary was paid in error and has requested it back.

So if your daughter wants a legal option to keep the money I don’t think it would end in her favour because of a and b. She should repay as much of the money as she can now, and then discuss the remainder with her previous employer and come to an arrangement.

I am sure saying “I had spent €300 of the money before I realised there was more money in my bank account than there should be”, may get a better response than “it is all your fault and incompetence so you need to suffer financially because of that”

Plus despite being a student she is an adult so using that as an excuse just doesn’t get you anywhere.
 
Thank you for those replies.

Engagement will happen.

Contrary to what most seem to think here I believe the Bank left a 4 month gap dealing with their mistakes and 2 months since being offered repayment and did not reply.

It has been on her mind.

Do you see the point ?

Do you see this as some sort of David v Goliath because I dont.

To me a settlement must be in order.
 
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I doubt the person in the bank who sent the letter has the background, they've likely just been handed a request to retrieve money due to an incorrect payment. This happens all the time in the bank.

I'd imagine if it was millions they would pursue aggressively, otherwise they may not.

At the end of the day it is money that is not hers and paying it back is the right thing to do. You could chose not to but given your daughter is pursuing a law career it is quite risky giving the importance of ethics in that career.
 
Do you see the point ?

The point is she owes the money and has confirmed in writing that she does. It is not a good idea to burn bridges behind you and for all you/she knows it may suit her some time in the future to gain employment again with said bank. It may well stand to her reputation with them if she handles this matter correctly and repays the money she owes in full.
 
This is the reality of large business in 2023. The line manager is obligated to complete the leavers form, which triggers the payroll next steps, and all the ICT stuff.
Unless they get the form nothing will happen.
There is no HR person keeping an eye on leaving dates because so many are people churning through the system. Errors do and will happen which triggers other processes, like reclaim overpayment of salary, which is probable a finance function and not HR, payroll or the line manager.

I may have a lot of sympathy with your daughter but you are looking at the legal route and all that is there are just facts.
 
Thanks but can we have some balance here.

I thought you were only interested in the law and how to get away with not paying anything back.

If you left your wallet in a taxi, would you expect the driver to say "finders, keepers. You were incompetent leaving it behind. Hard luck."

If you overpaid in a shop, and the shop subsequently noticed, would you expect them to refund you.

You should give your children a moral compass. People make mistakes. Organisations make mistakes. Pay back the money.

It's the right thing to do.

By the way, it's also the legally right thing to do.

Brendan
 
Unecessary comments there Brendan

It will be dealt with, I can see that offering a settlement is going down badly here for this unfortunate situation.
 
The money must be repaid.

However, the bank broke the law when they amend (zeroed) the payslips on Revenue. They are required to report the money paid and the taxes deducted.
Only if/when the money is repaid can the bank enter/upload a Payslip on ROS with Negative values for the Pay Date on which the money was repaid.
 
This reminds me of a case last year....the sum just a few orders of magnitude larger.

Essentially Citigroup sent $500m instead of $5m to Revlon. Revlon said hard luck your mistake we're keeping it.

 
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