Navigating a Delicate Situation: How Can We Recover Overpaid Salary from a Former Employee?

Friends and Seniors,

Firstly, wishing you all a Happy Diwali. We have an issue. One employee was asked to leave, and we did not want to show it as termination, so his resignation was kept confidential. In the bargain, the management team missed updating HR about his resignation, and we paid two months' extra salary to this employee before realizing the mistake. Now, when HR approached the employee, initially, he was very humble and said he would transfer back the funds. However, now when followed up, he is stating, "you guys asked me to leave, so I have resigned. The industry is paying 6 months' salary," and expressing that he will not return the excess amount paid.

How to deal with the employee and recover the excess salary

How do we deal with this employee and recover the excess salary paid to him?

Regards,
CJ

Dear C.J.,

Excess payment to an employee can be recovered from him if it is detected and intimated to him within a reasonable time, subject to the condition of providing him an opportunity to explain his stand. When he is not in the service of the establishment, you can recover it through his current employer. If his whereabouts are not traceable, either you have to write it off or recover from the person who made the mistake.

Personal View on the Current Case

In the case at hand, my personal view is that the amount may be magnanimously waived in view of the forced and quick resignation of the employee.