I’ve overpaid an employee – what can I do about it?

Even if the overpayment was caused by a genuine error or fault, you cannot simply deduct an employee’s pay without an employee’s written consent.

You must notify the employee about the overpayment and that you intend to deduct their pay in order to recoup the full amount of the overpayment. You may need to discuss repayment options, and it is a good idea to record the arrangement in writing.