Overpayments Policy

About this Policy

 

It is important that colleagues are always paid correctly, however we recognise that occasionally errors may occur which can result in incorrect payments being made. This policy sets out how the Society will manage overpayments (and underpayments) of salary, allowances and benefits made to existing and former colleagues.

This policy applies to all colleagues (whether employed on a full-time, part-time, fixed term or permanent basis), as well as self-employed contractors. In addition, this policy also applies to former colleagues. It does not apply to agency workers.

This policy does not form part of any colleague’s contract of employment and we may amend it at any time. 

 

 

Incorrect Payments

 

An overpayment is where a payment is made which is in excess of what a colleague is due. Examples include but are not restricted to situations where;

• a colleague receives more salary or any other payment over and above their contractual entitlement, or

• where a colleague has exceeded their annual leave entitlement at the point of ending their contract of employment with the Society or where they have made changes to their contract of employment.

 

An underpayment is where a payment is made which is less than what is due to a colleague.

 

 

Who is Responsible for this Policy?

 

All colleagues should understand their pay entitlement and take personal responsibility to check that their pay is correct each period by accessing their payslip. Colleagues should contact their line manager in the first instance, if they have any queries or concerns with regards to their pay.

 

 

Colleague Responsibilities

 

If a colleague considers there has been an error in their pay which has resulted in an overpayment or an underpayment they should contact their line manager in the first instance, who in turn can raise a service now call if required. The payroll team will respond at the earliest opportunity and confirm next steps to the line manager.

 

 

Manager Responsibilities

 

All managers must ensure that any changes to employee contracts are submitted on the IFS system and termination requests are completed in a timely manner to avoid any overpayments being made to colleagues. Managers should ensure that leavers are informed of any final salary adjustments for annual leave and basic weeks adjustments where applicable. To proactively avoid overpayments, it is also the Manager’s responsibility to ensure that the colleagues timecard data is accurate and is signed off in Kronos accurately and on time.

 

When an incorrect payment has been identified, action should be taken as quickly as possible to correct this.

 

Incorrect Payment Procedure

 

Overpayment to existing colleagues: 

Where the Society identifies that an overpayment has been made to a colleague, this amount will be deducted from the next salary payment in the next four weekly pay period where possible. In this event, the payroll team will liaise with the Line Manager who in turn will make the colleague aware of the adjustment. 

Whilst the Society will seek to deduct any overpayments in the next salary payment, we want to avoid a situation where this may cause financial hardship to a colleague, where this is likely to arise the line manager and colleague should discuss the individual circumstances so that the line manager can discuss and agree a payment plan with the payroll team.

 

Overpayment to leavers: 

Where possible, any overpayment which remains unrecovered at the time employment with the Society ends will be deducted from the colleague’s final salary payment.

Where the Society identifies that an overpayment has been made to a colleague that has left the Society, Payroll will write to the former colleague explaining the reason known for the overpayment and will request reimbursement or plans of reimbursement within 14 days from the date of the letter.   

Repayment plans for overpayments in this scenario will be considered on an individual basis.

  

Underpayment:

Any underpayment identified will be rectified and paid in the next available pay period, unless this will cause financial hardship to a colleague, where this is likely to arise the line manager and colleague should discuss the individual circumstances so that the line manager can discuss and agree a payment plan with the payroll team.

 

 

 

Additional Support

 

If colleagues have any questions regarding this policy or require additional support, you should speak to your line manager in the first instance. 

If you have any queries about your pay, you must raise this with your line manager immediately, who will check the information submitted for you and if necessary, raise a service now call. The Payroll team will respond at the earliest opportunity. 

The Society has partnered with GroceryAid to provide colleagues with a FREE confidential helpline service. For help and advice colleagues can contact the confidential 24/7 GroceryAid Helpline by calling 08088 021 122. A live webchat is also available here. There is also a wide range of guidance and support resources available at www.groceryaid.org.uk.