Client?
Call Now
  1. Home
  2. Guides
  3. Wage and pay
  4. Overpayments

Overpayments

Published April 2, 2015 (last updated on November 30, 2023) | Adam Wyatt - Content Writer

Image

Overpayments

Getting your money back if you happen to overpay an employee is not always easy. Even if you made a simple clerical error, or misinterpreted an award or agreement, there is a legal process to follow.

You can deduct pay if an agreement, award, law, court order, or the Fair Work Commission (FWC) allows it. But if the deductions are for your benefit, they may be unlawful. If your employee then refuses to agree to repay the money, you would have to get a court order. The courts usually say recovery is available if you can show a mistake was made that led to overpayment. Recovery is not possible if the payment was intentionally made or the employee has already used the money in good faith.

Your best option to get the money back is to make an arrangement acceptable to you and your employee where you deduct small amounts from their pay over time. Always have a clear policy on overpayments in the employment contract and employee handbook, which says employees must report overpayments to their manager immediately.

Employsure will advise you how to legally approach overpayments. For peace of mind, please call our 24 hour Advice Line now on 1300 651 415.

Get Workplace Advice Now

Call Our Team of Expert Advisers To Get Help With Any Workplace Related Questions. 

Call now

Guides in this category

View All

Have a question?

Employsure Logo

Not a client yet?

1300 207 182

Existing clients call (AU)

1300 651 415

Existing clients call (overseas)

+61 2 8123 3640

Employsure HQ

Level 6/180 Thomas St, Sydney NSW 2000
Peninsula LogoEmploysure Law LogoFair Work Help LogoEmploysure Mutual LogoBright HR LogoHealth Assured LogoGraphite HRM Logo
Peninsula LogoEmploysure Law LogoFair Work Help LogoEmploysure Mutual LogoBright HR LogoHealth Assured LogoGraphite HRM Logo

Copyright © 2024 Employsure Pty Ltd. ABN 40 145 676 026

Employsure Protect is a financial product issued by Employsure Mutual Limited ACN 630 256 478 (AFSL 544232). Employsure Mutual has appointed Employsure Pty Ltd as its Authorised Representative (No. 001274577) to distribute the product and provide general advice. To decide if this product is right for you, please read the Employsure Protect Product Disclosure Statement (PDS) and Target Market Determination.