Q. My employee owes me one day’s holiday entitlement. It states in her signed contract that we can deduct overpaid holiday entitlement from an employee’s final pay. There is no further pay to her due in June, but there is a £84 tax rebate going through for her. Can we deduct the overpaid holiday day from the tax rebate due?

A. Deductions and overpayments can be taken from tax rebates.

 

Q. My employee has been overpaid £200 gross in error. This overpayment occurred the month before they went on maternity pay. The employee has signed to agree for the deduction to be taken back from their pay. Can I take this £200 deduction from their maternity pay?

A. Deductions and overpayments cannot be taken from maternity pay, as it is a protected amount. What you will need to do is inform the employee that the £200 overpayment will be taken back from their pay in the first full month that they work after they return from maternity leave.

 

Q. My employee who works Monday through to Friday went off sick on the 18th a sick note for a week until the 24th payroll. However the employee submitted a further sick note for the 25th the payroll has been run. How do we sort this out in July’s pay?

A. You must firstly make your employee aware they have been overpaid. You must also inform them that their overpayment will be rectified in July’s pay. In July’s pay, you should deduct 4 days salary for the overpayment of days in June, and pay 4 days SSP instead. These amounts will be on top of the days deducted and SSP days paid for any working days in July where the sickness absence continues.