Overpayment recovery process

Employees still employed by us 

Whatever the value of the overpayment, we will pursue it through payroll. 

If it is less than £50 (gross) we will deduct it from the next available pay period. 

We will not pursue overpayments of less than £50 (gross) if identified after one year has elapsed. 

Payment by instalments 

We aim to recover the overpayment immediately. However, if this would cause financial hardship: 

• the line manager or budget holder may agree the employee can pay by instalments. This should be for no longer than three months. 
• if repayment in no more than three months would still cause financial hardship our head of finance and relevant senior manager (head of service or above, or head teacher) may approve a period of more than three months to pay. This will depend on the circumstances in which the overpayment arose    

If the overpayment is for £500 or more, which the employee should have noticed, we will recover the amount from the next available pay period. 

The payroll manager may agree to repayment over a longer period: 

• if the overpayment is for £500 or more and the employee would not have easily been able to identify the error 
• where the overpayment is more than a month's salary

The payroll manager should consult with: 

• the relevant senior manager or head teacher, in liaison with the governing body 
• head of finance 
• HR services manager or Strategic HR Business Partner 

The payroll manager should record the reasons for this and report this to the head of HR. 

If employment ceases before the overpayment is repaid in full we will deduct any monies owed from: 

• the employee's final salary 
• any monies due to be paid to the employee, for whatever reason, arising from his or her employment  

If the employee's final salary is insufficient to repay the remaining balance, they must repay the outstanding amount in line with the normal debt recovery process. 

We will record on file the reason for repayment by instalments. We will review this if circumstances change, for example: 

• the employee leaves 
• the employee increases their weekly hours 

Escalation process 

We will apply an escalation process if the employee: 

• does not respond within four weeks of notification of the overpayment 
• does not agree to arrangements for the full recovery of the overpayment 

Stage 1

The payroll manager will notify the following stakeholders that the employee has not responded or agreed a repayment plan: 

• senior manager or head teacher
• our head of finance 
• HR services manager or Strategic HR Business Partner 

The senior manager or head teacher will liaise with the line manager. The line manager will assist fully in recovering the money regardless of how the overpayment occurred. They should liaise with the employee as appropriate.  

Stage 2

The payroll manager will begin debt recovery proceedings by raising an invoice for the full net amount: 

• two weeks after the above action, we have not reached a recovery agreement 
• there are no known exceptional circumstances to consider 

The payroll manager will inform: 

• the employee 
• relevant senior manager or head teacher 
• our head of finance  
• HR services manager or Strategic HR Business Partner

The credit control team will agree a repayment plan with the employee.