Overpaid in Perth – Required to Repay
I was employed full-time with a State Government Department from late August to early October of last year.
In early January, I unexpectedly received a payment from my former employer that was roughly equivalent to a day’s pay, possibly a bit less.
At the time, I didn’t investigate the reason behind the payment. I figured it might have been a government-related adjustment—perhaps they had underpaid me and were correcting the difference (I had a similar experience a few years ago while working at a University, so I didn’t think much of it).
This week, however, I received an email explaining that this payment was actually an overpayment and requesting a reimbursement.
The explanation stated:
The overpayment resulted from a system error, specifically the payment of backpay for an award rate increase. You are not entitled to this payment due to your termination date of October X, 2024, which is before the eligibility date of December 12, 2024.
I somewhat understand this part, but there’s another section that mentions:
Pay date(s) when the overpayment occurred: From X September 2024 to X October 2024 (my last working day).
Does anyone have insights into this situation? What are my obligations?
By the way, both the email and letter were poorly composed, and they even misspelled my first name in the letter where they asked me to specify the amount I need to transfer to the provided bank account, but I guess that’s a minor detail. 
Thank you in advance for any help!
It sounds like a confusing situation you’ve found yourself in. Here are a few points to consider:
Error Explanation: From what you’re saying, it appears that the department acknowledges there was a payment made to you that they now classify as an “overpayment” due to a system error related to an award rate increase that you weren’t eligible for after your last day of employment.
Obligation to Repay: Generally, if an employer overpays an employee, they have the right to reclaim those funds, even if you didn’t notice the overpayment right away. In Australia, there’s often a legal obligation to repay wages that were paid in error. However, how they handle this may depend on the circumstances and the specific policies of the State Government Department.
Employment Termination Date: The email mentions your termination date is prior to the eligibility date for the award increase backpay, which indicates you shouldn’t have received that payment at all. That could be why they’re requesting repayment.
Pay Dates in the Email: The mention of pay dates from September to October 2024 seems questionable, especially since it’s well in the future. Double-check your records and try to clarify this with them—it might just be an error on their part, or it could indicate a misunderstanding on your end about the timing of your employment.
Contacting Them: Given the poor clarity in their communication (like the misspelling of your name), it would be beneficial to contact their payroll or HR department directly for clarification. Ask for detailed information about the overpayment and any evidence they have regarding the pay dates and amounts.
Consider Seeking Advice: If you’re feeling unsure about your obligations, particularly in terms of repayment or your rights, you might want to consult a legal professional or a financial advisor who specializes in employment issues.
Document Everything: Keep all correspondence regarding this matter. Should things escalate or if disputes arise, having a paper trail will be very helpful.
This can be a frustrating situation, but with the right approach, you can figure out how to proceed. Good luck!