It sounds too good to be true - you check your bank balance and there's more there than you expect.

Sometimes it's correct - you might have been owed tax, had a backdated pay increase or done more hours than you realised. In these cases, you can keep the money and enjoy it.

But, if it's an error in your favour, and not for hours you've worked, your employer has the right to claim back money - even if you've already spent it.

What should you do if you've been overpaid?

While it may be tempting to keep your head down and hope for the best, this can lead to trouble down the line, so it's best to talk to your boss or payroll as soon as possible.

Similarly, businesses should contact the employee as soon as they're aware of the mistake.

Together, both parties can agree on how the money is paid back.

Can my boss take the money out of my account?

According to Acas, an employer should not deduct money from their employee's wages without letting them know. The employer should talk to the employee first and agree on how the money will be paid back.

So if it's a one-off overpayment, they could let the employee know that they'll deduct it from the next pay packet. Or the employee could offer to pay the money back a different way, for example by bank transfer.

If the overpayment was a large amount or over a long period of time, an employer should be flexible and fair claiming the money back, and agree on a realistic repayment plan – this can help the employee manage their finances.

Contact the Acas helpline to discuss your options if you:

  • cannot agree a repayment plan
  • believed you were being paid the correct amount and will struggle to pay the money back

Employers must consider the well-being and mental health of their employees. 

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Looking out for your employees' well-being and offering support can help prevent:

  • absence
  • mental health problems arising
  • existing mental health problems getting worse

What about an overpayment to staff who have left the business?

Acas says if an employee owes money but no longer works for the organisation, the employer should contact them. They should explain why they think they owe them money and how much.

If the former employee refuses to pay back the money, the employer might be able to make a court claim to get the money back from them.