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taratill, Solicitor
Category: Employment Law
Satisfied Customers: 6430
Experience:  15 years experience of advising on employment law matters
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I have a member who retired about 3 months ago. The company

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I have a member who retired about 3 months ago. The company recebtly contacted him
To inform him that there was an error when they overpaid him sick pay whilst he was employed by them. They now want him to pay back £250 asap. He is refusing to pay; does he have a legal right to refuse? I know the company can claw back overpayments but is there any way round this? My member now has little income, so should he be protected by the 10% limit? Thanks
Hello my name is ***** ***** I am happy to help you today.
Did he realise he had been overpaid or is this the first he knew of it?
Customer: replied 2 years ago.
Hi Jenny
It was the first he knew
Ok in that case he can try to rely on the law of estoppel to avoid paying back.
The basic position is that it is repayable UNLESS the employee was unaware of the overpayment and has spent the money in good faith.
He should tell the employer that this is the case and the law of estoppel therefore applies to prevent them from recovering.
The employer will then probably drop the issue.
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