Overpayments: Deal with an accidental overpayment discovered after employee has left organisation
When to use this overpayments flowchart
Use this overpayments flowchart to deal with an accidental overpayment made to an individual where the overpayment is discovered only after they have left the organisation.
The employer must act quickly once it discovers the error and attempt to obtain the ex-employee's consent to a deduction being made from their final wages or salary, where this is possible, or to a repayment or series of repayments.
This flowchart should be used only where there has been an overpayment of wages or employment-related expenses.
Key steps
- Consider if overpayment can be recovered in full or in part by making deduction from ex-employee's final salary
- Make deduction from ex-employee's final wages
- Review payroll procedures to ensure error is not repeated
