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taratill, Solicitor
Category: Employment Law
Satisfied Customers: 6466
Experience:  15 years experience of advising on employment law matters
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After winning an out of court settlement from my past employer

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After winning an out of court settlement from my past employer for unfair dismissal due to ill health. They paid the agreed amount of compensation but then a couple of days later made another payment to my account.( a months salary)
At the time I thought it might be pension contributions or such and did not question it.
They are now asking for the money back. It was their mistake. Where do I legally stand on this? I was treated so badly after 19 years of service that I have not responded as yet.
Hello my name is ***** ***** I am happy to help you today.
Have you spent the money?
Customer: replied 2 years ago.
Yes. I thought it was part of the settlement. It took about a month to ask for it to be returned.
Ok no problem, I can understand how that can happen.
The good news is that you can defend this using the law of estoppel.
The basic position is that overpayments should be repaid. However the law of estoppel says that where an overpayment is made and it has been spent in 'good faith' then it cannot be recovered.
You should therefore write to the legal department to tell them that you are going to rely on the law of estoppel on the basis that you did not realise this was an overpayment and have spent the money.
It is my view that they will then probably refrain from attempting to recover it.
If you have any further questions please do ask. If I have answered your question I would be grateful if you would take the time to rate my answer. Thank you and all the best.
Customer: replied 2 years ago.
Thank you
No problem, I would be grateful if you would take the time to rate my answer as it is an important part of the process and I am not otherwise credited for the time I have spent answering your question.
All the best with this and do come back to me in the future if you need to.
Many thanks
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