20 September 2019

Payback time?

Employment Law
Federal

Asked

Employment – Overpayment by the employer

Is an employee obligated to repay overpayments made as a result of payroll office error?

Answered

Thank you for the question.

Yes, if an employer overpays an employee by mistake the employee has an obligation to repay the overpayment. If proposing to deduct the overpayment from the employee's wages, see s 324 of the Fair Work Act 2009, which regulates allowable deductions.

Regards

Mentor