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26/03/2009 00:59:04
Re: Salary overpaid by employer

Hi, i got a friend who's employer overpaid him for his salary. without knowing my friend spend it and now the employer wants to recover the amount. what can my friend do to protect himself? should he pay back or not? pls reply very urgent
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26/03/2009 08:31:56
Employer has the right to deduct overpaid salary within 6 months.
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KL Siew
26/03/2009 09:25:52
Section 24(2) of the Employment Act has this to say:

.."(2) It shall be lawful for an employer to make the following deductions:

(a)deductions to the extent of any overpayment of wages made during the immediately preceding three months from the month in which deductions are to be made, by the employer to the employee by the employer¡¦s mistake;..."

So, if the deduction was not done in accordance with the above, he may consult the Labour Department.

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26/03/2009 16:14:27
Thank you for your reply
in his case the employer has overpaid my friend for JAN & FEB... and now its march ending...the employer is actually asking him to payback the money... what if my friend is not in capable to payback the money all at once?
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27/03/2009 09:06:41
I think that the only way he can do is negotiate with his boss to pay in installment. As he have no choice but to repay, and the mistake was done by the company, I think it is reasonable for the company to allow him to pay by installment.
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28/03/2009 01:20:37
ok will let my friend know... thank you so much...=)
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