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What to do if…
your employer says you must repay an overpayment immediately

Short answer

Don’t make an immediate separate payment “on the spot”. Get the claim and calculation in writing and respond quickly with a realistic repayment plan, because your employer may recover overpayments through payroll deductions.

Do not do these things

  • Do not send a bank transfer or cash payment just because someone says it’s “urgent”.
  • Do not agree to a repayment amount that’s unclear (for example, they quote a figure but won’t show how it was calculated).
  • Do not sign anything new under pressure (especially anything that allows open-ended deductions).
  • Do not ignore the message—silence can lead to faster deductions or escalation.
  • Do not assume the figure they quote matches what you personally received without checking whether they mean “gross” (before tax) or what hit your bank.

What to do now

  1. Ask for the details in writing (today). Request:

    • the pay periods affected and the reason for the overpayment
    • the calculation (how they got the figure)
    • whether they plan to recover it by deducting from wages or asking for a separate repayment
    • what repayment options they’re offering and who your contact person is
      Save everything (emails, messages, screenshots).

  2. Pull your own records (next 15 minutes).

    • payslips for the period in question (and the one before/after)
    • any letter/email confirming pay changes (hours change, rate change, bonus, sick pay, parental leave pay, etc.)
    • timesheets/rota/holiday records if relevant
      You’re checking whether it’s truly an overpayment and whether the amount looks right.

  3. Reply in writing: “I will repay what’s correct, but I need to verify and agree a schedule.”

    • Say you’re not refusing repayment, but you need the written breakdown first.
    • Ask them to pause or limit recovery while you check the figures (they may not agree, so act fast and keep it written).
    • Propose a specific instalment plan you can afford (a fixed amount each payday) and ask them to confirm acceptance in writing.

  4. Check your contract / staff handbook for any overpayment policy.

    • Look for wording on recovery (deductions, notice, repayment plans).
    • If you’re in a union, send the policy and the payroll email to your rep and ask for help drafting the response.

  5. If they insist on a full lump sum, keep it practical and repeat your offer.

    • State plainly that a lump sum isn’t possible without hardship.
    • Repeat your proposed amount per payday and invite them to suggest an alternative schedule you can actually meet.

  6. If deductions start or the amount is disputed, escalate through formal channels.

    • Ask payroll/HR for a meeting to agree the calculation and a reasonable schedule.
    • Raise it through the grievance process if you cannot agree (keep it factual: you dispute the amount and/or the speed of recovery).
    • For independent guidance on options and how to raise it, contact Acas.

  7. If you’re leaving (or have left) the job, switch to “written demand + negotiation.”

    • Ask for a written statement of what they say is owed and how they calculated it.
    • Propose a repayment plan in writing rather than agreeing to an immediate transfer.

What can wait

  • You do not need to decide today whether you’ll pay it all in one go.
  • You do not need to accept fault to start resolving this.
  • You do not need to commit to a repayment schedule until you’ve seen the written calculation.
  • You do not need to escalate beyond payroll/HR immediately—first get the facts and put your position in writing.

Important reassurance

Payroll errors happen, and it’s normal to feel panicked when someone demands money back quickly. Asking for the calculation and offering instalments is a reasonable, steady response that protects you from agreeing to something you can’t sustain.

Scope note

This is first steps only, to slow things down, verify the amount, and reduce the risk of a damaging rushed agreement. If the sum is large, the calculation is disputed, or you’re facing threats or retaliation, get specialist advice.

Important note

This guide is general information, not legal advice. What’s reasonable can depend on your contract, how the overpayment happened, and whether you’re still employed.

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