Occasionally an employer finds that it has overpaid an employee by mistake. This can be a very difficult situation for employers, especially where voluntary repayment from the employee does not occur. The Payment of Wages Act 1991 provides for situations where deductions can be made to an employee’s future remuneration to take account of a previous overpayment. However, it can be very challenging to recover money overpaid to a former employee.
A recent prosecution featured in the Irish Times illustrates the type of difficulties that can arise in overpayment situation. Click here