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Overpayments

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  • Date:
    22 February 1983
    Type:
    Employment law cases

    Contracts of employment: Overpayment of wages

    Where an employer has mistakenly overpaid an employee, the money can be recovered if it was paid because of a mistake of fact. However in a warning to employers operating computerised payment systems, the Court of Appeal in The County Council of Avon v Howlett holds that the defence of estoppel may operate to prevent recovery of all the money even if the employee has spent only some of it.

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HR and legal information and guidance relating to overpayments.