Ex-employers paid me money - possibly accidentally? Whats the deal?

Three months ago I parted company with my employer fairly accrimoniously. Ended up getting blamed for something someone else had done.

To cut a long story short, I accepted a compromise settlement of three months pay, with me agreeing to leave quietly. So I left, and luckily found a new job fairly quickly. There was a fair bit of hassle chasing down the money but I evenually got all I was owed including expenses owed etc.

However, I've just noticed that 2600 has been deposited in my account from my ex-employer. I'm not sure what this is for, but I'm not really expecting it. Initial thoughts is that the company has made a mistake (this is the sort of the company they are so nothing is surprising).

Am I legally required to inform them about it? Are they legally entitled to insist I give the money back?

Like I said, I don't know what the moneys for, but it could be a bonus or something I haven't had....

Must admit I'm not overkeen to be helpful to them because of the way they treated me and even if I've got to give the dosh back, it'll be a laugh dragging it out as long as I can!!!

If they have made a mistake they can claim it back at any time in the next six years. The sensible thing would be to tell them. Alternatively put it in a separate account and let it earn interest.

Peter Crosland

So you are saying that someone can put money in your bank account, wait six years and then ask for it back?

Must admit I'm not overkeen to be helpful to them because of the way they treated me and even if I've got to give the dosh back, it'll be a laugh dragging it out as long as I can!!!

You are under no obligation to let them know but don't spend the money and don't assume it is yours, otherwise you'll be on the wrong end of a theft accusation when they discover their mistake. You could of course write to them, deducting your standard service charge of 50. That's what I'd be inclined to do if I'd been pissed around by an ex-employer.

I think it depends if you notice it or not, or whether such is reasonable. If (as occasionally happens) a transfer acquires a zero or two on the end, and the recipient grabs and spends it, then it's reasonable to ask for it back.

Yes. You have no obligation to inform them of their possible mistake, but you *will* have to give the money back if they ask for it. In your position I would transfer the money to a separate interest-bearing account - preferably in a different bank - and forget about it unless they ask for it. In 6 years you can spend it. If they ask for it back, you only have to give them back the principle, and may keep any interest it has accrued.

(The reason to put it in a differnt bank is in case you become overdrawn in your normal account. In such cases it is not unheard of for banks to dip into other accounts you hold with them).

However, I've just noticed that 2600 has been deposited in my account from my ex-employer.

If it's worrying you, write to them requesting a detailed breakdown of the amount owed to you at severance date, as required by the tax authorities. Maybe they'll think you're whingeing, and give you a bit more ;-) DaveK.

Now that would be good. However, what if I said that I'd thought the money was owed to me and I'd spent it. Surely then I wouldnt be obliged to give it all back right away?

Now that would be good. However, what if I said that I'd thought the money was owed to me and I'd spent it. Surely then I wouldnt be obliged to give it all back right away?

They would be under no legal obligation to let you pay it back by instalments. Follow the advice I gave before.

Peter Crosland

They have to claim it back within six years and not after.

Peter Crosland

Now that would be good. However, what if I said that I'd thought the money was owed to me and I'd spent it. Surely then I wouldnt be obliged to give it all back right away?

If you *genuinely* believed you were entitled to the money then of course you would not have committed theft if you spent it. However you would still owe the money and would still have to pay it back. Frankly it's not worth all the aggro.

I don't agree. If the OP genuinely believed the money was his and spent it, being required to repay all of it in one go might incur hardship. Since in those circumstances the OP would be blameless, I don't believe that a court would order him to repay it immediately.

Bitstring , from the wonderful person Harry the Horse said

The court might read Usenet and see that the OP was in some doubt about it ...

Can you legally deduct something for your time and effort in dealing with their mistake (assuming it is a mistake)

Could you also drag it out in writing, and then once it is all decided, tell them you will pay them at the end/start of the month when you do your banking transactions, should enable you to get another 30 days interest out of them. Of course you could then send a cheque that you forgot to sign, that would mean having to wait until the next month etc etc....

Correct me if I am wrong but I thought the clock started again if they ask within six years?

Flop

That would be true, but is not the issue. They have not asked at

*all* yet, either because it was a genuine payment or because they have not recognised their error. If they realise the error and ask for the money back, the OP would be at fault if he did not pay it ASAP

- he does *not* get 6 years to pay!

You are wrong. The six years has already started. If it exceeds the six years they can no longer sue unless the person who owes the money acknowledges the debt. If they did that another six year period would begin.

Peter Crosland

The clock restarts whenever the debtor acknowledges the debt, not when the creditor asserts it. So the trick is never to agree that in fact you owe anything.

Oh, and please don't put a question mark on something that isn't a question.

Surely asking and claiming are pretty much the same thing?

Does acknowledging the possible debt (stopping the 6 year clock) have to be to his creditor, or can it be a post to uk.legal?