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Salary Recovery due to Overpayment

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1 Salary Recovery due to Overpayment on Mon Oct 05, 2015 7:20 pm

joycecheong


Arresto Menor
Hi, an employee has been overpaid since his promotion was rejected earlier. However payroll wasn't informed and went ahead to pay the employee the new salary.

Now employer has found out and proceed to inform payroll to pay the employee the previous salary. However, employee's manager did not agree with the salary recovery and claimed that it is the HR oversight.

Please advise if the employer can recover the salary overpayment from the employee? Is it legal to do so in Philippines?

Thank you.

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2 Re: Salary Recovery due to Overpayment on Mon Oct 05, 2015 7:37 pm

council


Reclusion Perpetua
joycecheong wrote:Hi, an employee has been overpaid since his promotion was rejected earlier. However payroll wasn't informed and went ahead to pay the employee the new salary.

Now employer has found out and proceed to inform payroll to pay the employee the previous salary. However, employee's manager did not agree with the salary recovery and claimed that it is the HR oversight.

Please advise if the employer can recover the salary overpayment from the employee? Is it legal to do so in Philippines?

Thank you.

Yes it is allowed to recover any overpayment.

Jurisprudence has made it clear:

"... an erroneously granted benefit may be withdrawn without violating the prohibition against non-diminution of benefits. ...

".... Hence, any amount given to the employees in excess of what they were entitled to, ... may be legally deducted ... from the employees salaries.

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3 Re: Salary Recovery due to Overpayment on Mon Oct 05, 2015 7:52 pm

joycecheong


Arresto Menor
Thanks a lot for the quick reply.

So even if the employee's manager or the employee himself did not agree with the recovery, employer is still allowed to recover the overpayment by deducting employee's monthly salary?

Thanks again.

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4 Re: Salary Recovery due to Overpayment on Mon Oct 05, 2015 8:12 pm

council


Reclusion Perpetua
joycecheong wrote:Thanks a lot for the quick reply.

So even if the employee's manager or the employee himself did not agree with the recovery, employer is still allowed to recover the overpayment by deducting employee's monthly salary?

Thanks again.

Manager has no say on the matter. This is between the employee and the company.

Employee is legally bound to return what does not belong to him even because of an error by the company.

I am sure if the situation is reversed and he pays the company more than what is required, the employee will want his money back.

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