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Overpayment Query

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    Overpayment Query

    Hi,

    Could anyone provide insight to the following situation?

    A signed contract (between end client, agency and accepted via brolly by contractor) states that in addition to a daily rate of pay, overtime at a specified rate will be paid.
    However, the original job offer cites clearly just a daily rate.

    The contractor, on receipt of his first payment, then notifies the company for whom he is working that an overtime payment was not the original intention of the poorly drawn contract.

    1. Is the contractor liable to refund the overtime sum?

    In this case the contractor was asked to extend his period of work by one week and several weeks later heard that he was not being paid for this week to offset the earlier overpayment.

    As this action alone was not enough to clear the overpayment the remaining balance overpaid is now being claimed by the brolly although the contract has finished.

    2. Is the contractor liable to repay this balancing sum?


    Thanks,

    XyNm777

    #2
    Originally posted by XyNm777 View Post
    Hi,

    Could anyone provide insight to the following situation?

    A signed contract (between end client, agency and accepted via brolly by contractor) states that in addition to a daily rate of pay, overtime at a specified rate will be paid.
    However, the original job offer cites clearly just a daily rate.
    Forget the offer. It is what you signed that counts really.

    The contractor, on receipt of his first payment, then notifies the company for whom he is working that an overtime payment was not the original intention of the poorly drawn contract.
    The contractor notifies the company? What does this mean? Why is the contractor notifying the company it wasn't the intention. Have you got this wrong way around? Did you get paid the overtime or did you put it on your timesheet and not get it paid. Bit more context please.

    1. Is the contractor liable to refund the overtime sum?

    In this case the contractor was asked to extend his period of work by one week and several weeks later heard that he was not being paid for this week to offset the earlier overpayment.

    As this action alone was not enough to clear the overpayment the remaining balance overpaid is now being claimed by the brolly although the contract has finished.

    2. Is the contractor liable to repay this balancing sum?
    Was this overtime approved? I would expect you should have asked for approval before carrying out the work. If you have just worked it without telling anyone then you are in a real situation. If they didn't approve it you shouldn't have worked it.

    If it was all approved and process followed then the contract stands and they should honour it.. period. You cannot just go back and so oh, we didn't really mean that. If they could the world would be in a state of anarchy.

    I think the devil is in the details of this one and you have not given us the pertinent details. The fact you only dropped the word brolly in doesn't help (and this hasn't been posted in the Umbrella section either).

    Can't help you without the full details really.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      Originally posted by northernladuk View Post
      Forget the offer. It is what you signed that counts really.



      The contractor notifies the company? What does this mean? Why is the contractor notifying the company it wasn't the intention. Have you got this wrong way around? Did you get paid the overtime or did you put it on your timesheet and not get it paid. Bit more context please.



      Was this overtime approved? I would expect you should have asked for approval before carrying out the work. If you have just worked it without telling anyone then you are in a real situation. If they didn't approve it you shouldn't have worked it.

      If it was all approved and process followed then the contract stands and they should honour it.. period. You cannot just go back and so oh, we didn't really mean that. If they could the world would be in a state of anarchy.

      I think the devil is in the details of this one and you have not given us the pertinent details. The fact you only dropped the word brolly in doesn't help (and this hasn't been posted in the Umbrella section either).

      Can't help you without the full details really.
      WHS. In fact, it sounds like you're being deliberately vague in the hope that we'll tell it's all fine. Which we're not going to do.

      Comment


        #4
        Originally posted by XyNm777 View Post
        As this action alone was not enough to clear the overpayment the remaining balance overpaid is now being claimed by the brolly although the contract has finished.
        "the remaining balance overpaid is now being claimed by the brolly"

        I don't get this. You send a timesheet to the umbrella, they invoice the client/agency, they pay you. Who are they claiming the remaining balance from? You or the client? And how did the overtime get included? Did the umbrella company look at your timesheet and invoice for 5.1 days a week instead of 5?

        Comment


          #5
          Originally posted by XyNm777 View Post
          Hi,

          Could anyone provide insight to the following situation?

          A signed contract (between end client, agency and accepted via brolly by contractor) states that in addition to a daily rate of pay, overtime at a specified rate will be paid.
          However, the original job offer cites clearly just a daily rate.

          The contractor, on receipt of his first payment, then notifies the company for whom he is working that an overtime payment was not the original intention of the poorly drawn contract.

          1. Is the contractor liable to refund the overtime sum?

          In this case the contractor was asked to extend his period of work by one week and several weeks later heard that he was not being paid for this week to offset the earlier overpayment.

          As this action alone was not enough to clear the overpayment the remaining balance overpaid is now being claimed by the brolly although the contract has finished.

          2. Is the contractor liable to repay this balancing sum?


          Thanks,

          XyNm777
          If any company has been overpaid, they are liable to return the overpayment. Circumstances will not alter this fact.
          The only debt collection & credit control company recommended by Contractor UK.

          Read our articles on ContractorUK here and get in touch here.

          Comment


            #6
            Originally posted by Safe Collections View Post
            If any company has been overpaid, they are liable to return the overpayment. Circumstances will not alter this fact.
            That is assuming it is agreed by all parties there has been an overpayment.. which seems not to be the case in this instance.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #7
              Originally posted by northernladuk View Post
              That is assuming it is agreed by all parties there has been an overpayment.. which seems not to be the case in this instance.
              Problem is as Bunk states the original post is very vague.

              Theoretically If the contractor has been paid for the hours worked at the rate agreed in the contract then that should be that.

              However if the contractor knows they have been overpaid (and in our view that is what the original post is intimating) then any overpayment must be returned.
              The only debt collection & credit control company recommended by Contractor UK.

              Read our articles on ContractorUK here and get in touch here.

              Comment

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