Helping employers recover overpaid wages

We work with employers who have occasional issues when a member of staff leaves their employ with an overpayment of wages or salary. We usually become involved after the employer has been unable to recover the overpayment.

An employer can engage Payroll Debt UK on an one-off basis or on an ongoing basis.

Our assistance can be sought to recover an employee overpayment for a variety of reasons, including (but not limited to):
💷   employee absence in the last few days of employment (after final payroll payment processed)
💷   employee taking more paid holidays than entitled
💷   season ticket loan, or other loan, not fully repaid
💷   previous overpayment not fully repaid before leaving
💷   employee fraud, for example falsely claimed overtime or sick pay
💷   error in a termination payment

Payroll administration is a complex area, as is debt collection. The team at DCS includes specialists in both payroll administration and the collection of debts. This makes us ideally placed to assist employers to recover overdue wages.

We would normally only get involved in an overpayment after the employment has ended, as any overpayment during a period of ongoing employment is normally a matter between the employer and the employee. Once the employment ends, however, an employer sometimes needs external assistance to help recover the overpayment.

image of payslips

We would hope to generate a prompt repayment of the wages. Our initial correspondence with the ex-employee would seek prompt repayment direct to the employer. Only if we were not able to reach an amicable conclusion with the ex-employee would it be necessary to take a more formal route towards repayment.

Sometimes, it may be necessary to explain to the ex-employee exactly how and why the overpayment occurred, and to explain the legal obligation to repay the overpayment.

It may be necessary sometimes to negotiate a repayment plan with the ex-employee if they do not have the funds immediately available to repay the debt in full.

Regretfully, sometimes it is necessary to take County Court proceedings against the individual to ensure the overpayment is repaid – we would hope to not take that route, but if this is necessary then we will assist the employer through the process.

Where necessary (and at additional cost to the employer) we will engage a ‘trace agent’ to help trace the address for the ex-employee where the employer does not hold this information.

photo showing a ring binder with the word PAYROLL alongside a calculator

We charge an initial “Instruction Fee” for each case taken on, and then charge a “Success Fee” based on the sum recovered. This incentifies us to recover the debt, and also minimises the initial charges incurred by the employer.

The debtor will be instructed to make payment(s) direct to the employer.

We'll work hard to recover what is owed.