Can we get our money back from an overpaid worker?
Q: One of our staff has frequently been absent from work due to illness/carer’s responsibilities. She has been paid for all the days for which she was absent.
A reconciliation has been undertaken of her personal leave entitlements and this has revealed that she has been paid for 38 days in excess of her paid sick leave entitlement. Can we now request that this excess payment be deducted from her annual leave entitlement or her long service leave entitlement?
If not, moving forward can we debit future sick leave accruals against this advance payment and can we now request the employee sign an agreement stating they will have to repay the amount of the advance payment should they resign?
A: You are unable to deduct amounts from an employee’s entitlements unless the employee has given their written consent and the deduction is principally for the employee’s benefit.
You may like to speak to the employee to explain the error and request that they pay the over-payments back to you, however, you would have difficulty enforcing this if they declined.
Please note: The answer is correct at the time of publishing. Be aware that laws may change over time. Refer to Wages for current advice.
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