overpayment
staunton
6 Posts
A company accidently overpaid two workers. The compamy ask the two employees to return the money on a payment plan. One has been paying the other refused. Obviously the company wants to terminate the one who will not repay money. Any one know of any precedence for this type of situation
Comments
If an employee is overpaid, the employee has a responsibility to repay those funds. Failure to do so would be no different than if that employee walked into the accountant's office and took the petty cash box - it's theft. As far as refusing, I don't see where that is an option.
I have had some situations in the past where employees had been overpaid and what I did was provide the employee with written documentation of what the overpayment was, and how it would be deducted from future monies owed to the employee. I always made sure they signed the deduction agreement and never had a problem. It appears as if this is not the case for you so I would recommend sitting the employee down, explaining what the error was and that it is their responsibility to repay this mistake. If they refuse, terminate the individual and make the decision regarding whether or not you want to file charges against them. I would never entertain the notion of keeping an employee who KNEW they received money they shouldn't have and then having the audacity to refuse to repay it.
Go the search box to the bottom left of this screen, and type in "overpayment." Several related streams of content will pop up. Hope this helps. tk
Tony Kessler, director of editorial
M. Lee Smith Publishers LLC
(615) 661-0249 ext. 8068