PSA has been made aware that a number of staff have been advised that they have been overpaid and are seeking clarification on how this money can be recouped.
The Industrial Relations Act 1996 under Part 10, requires an employer to pay in full to an employee wages owing for time worked. If an overpayment occurs the money cannot be automatically recouped from wages by the employer. In cases of overpayment an agency should take the following factors into consideration when determining the period over which the repayment is to be made:
- the employee’s financial circumstances and commitments;
- the circumstances involved in the overpayment; and
- the amount of the overpayment
No overpayment should be recovered without prior notice to or consultation with the employee to first determine the financial impact. In instances where the overpayment is significant, a payment plan can be developed so that the monies can be recouped without financially disadvantaging the employee.
If you require further clarification or PSA assistance, please JOIN and contact the Member Support Centre for helpful advice in the first instance and escalation to our Industrial Team where appropriate.