26 September 2023

Union advises on overpayment rules

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The Public Service Association of NSW (PSA) has issued advice to Government workers clarifying their rights in cases of overpayment.

In a statement, PSA said it had been made aware that a number of staff had been advised that they were overpaid and were seeking clarification on how that money could be recouped.

“The Industrial Relations Act 1996 under Part 10, requires an employer to pay in full to an employee wages owing for time worked,” the PSA said.

“If an overpayment occurs the money cannot be automatically recouped from wages by the employer,” it said.

“No overpayment should be recovered without prior notice to or consultation with the employee to first determine the financial impact.”

The PSA said that in instances where the overpayment was significant, a payment plan could be developed so that the monies could be recouped without financially disadvantaging the employee.

It said Government Agencies should take certain factors into consideration when determining the period over which the repayment was to be made.

The union said this included the employee’s financial circumstances and commitments; the circumstances involved in the overpayment; and the amount of the overpayment.

“If you require further clarification or PSA assistance, please join and contact the Member Support Centre for helpful advice in the first instance and escalation to our Industrial Team where appropriate,” the PSA said.

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