Correcting overpayment of wages

Lamp, The, July, 2008 by Judith Kiejda

I work in a large public hospital and many years ago I received a letter from the pay office advising me I had been overpaid for approximately 30 hours work. The error was made by my manager at that time and I refused to pay the amount owing. I advised the pay office we would resolve the issue on my resignation.

I have now changed employment and am working on the casual pool. Now I have resigned from my permanent, part-time position, my employer has advised that I will be deducted 30 hours pay from my termination pay. Is this correct?

The management of overpayment of wages in the public health system is covered under PD 2005-160 which advises:

* that if any overpayment of wages to an employee has occurred then the Area Health Service has an obligation, as does the employee, as a matter of public duty, to correct this overpayment.

* that the employee must be given a full explanation and details of the overpayment including the calculation of the amount involved.

* that the personal circumstances of the employee must be considered and discussed in an attempt to reach agreement on the timing and amount of repayments.

* that where the employee disagrees with the overpayment or repayment plan the Area Health Service must establish a fair and transparent review process.

* that the employee may be represented by another nominated person such as their employee association.

* that if agreement cannot be reached then the Health Service is obligated to seek a resolution that may include legal action to ensure repayment.

Your employer needs to provide you with all the information in relation to this over payment; provide details on how the amount was calculated and give you the opportunity to arrange to repay this sum of money. No money may be deducted from your wages, apart from tax, without your prior approval.