My Employer Has Accidentally Overpaid My Salary. Can They Recover It?

Usually, yes.

Where your employer has accidentally overpaid your wages or salary, it will generally be entitled to recover the money.

An overpayment might arise because of:

• A payroll error
• Incorrect overtime
• An incorrect salary figure
• Too much holiday pay
• A bonus paid twice
• Failure to reduce pay following a change in circumstances

The Employment Rights Act 1996 allows an employer to make a deduction from wages to recover an earlier accidental overpayment.

However, your employer should normally tell you about the mistake and explain:

• How the overpayment happened
• How much it believes you owe
• How it has calculated the amount
• How it proposes to recover the money

Where the overpayment is relatively small and has only recently occurred, repayment may be straightforward.

If the amount is substantial or has accumulated over a long period, Acas recommends that employers act fairly and consider agreeing a reasonable repayment plan rather than creating unnecessary financial hardship.

What if I Did Not Realise I Was Being Overpaid?

This can make the position more complicated, particularly where the overpayments continued for a long time.

In limited circumstances, you may be able to argue that you genuinely believed the money was yours and changed your financial position in reliance on receiving it.

This is sometimes referred to as a change of position defence.

Whether such a defence succeeds will depend heavily on the facts.

Relevant issues can include:

• Whether the overpayment was obvious
• How long it continued
• Whether you had reason to question the amount
• What information appeared on your payslips
• Whether your employer had previously confirmed your level of pay
• What you did with the money

You should not assume that simply spending an overpayment means it no longer has to be repaid.

What if I Have Already Left the Employer?

Your former employer cannot recover the money by deducting it from future wages if you are no longer employed.

It may instead contact you and ask for repayment.

The parties may agree:

• A single repayment
• Instalments
• Another repayment arrangement

If agreement cannot be reached, the former employer may potentially bring a civil court claim to recover the overpayment.

Any defence you have to repayment would depend on the particular circumstances.

What is the Current National Minimum Wage?

The National Minimum Wage and National Living Wage rates changed on 1 April 2026.

The current minimum hourly rates are:

• Age 21 and over – £12.71
• Age 18 to 20 – £10.85
• Under 18 – £8.00
• Apprentice rate – £8.00

The National Living Wage now applies to workers aged 21 and over.

The lower age threshold is therefore no longer 23, as it was under the older rules.

Who Qualifies for the Apprentice Rate?

The apprentice minimum wage rate generally applies if you are:

• Under 19
• Aged 19 or over and in the first year of your apprenticeship

If you are aged 19 or over and have completed the first year of your apprenticeship, you should normally receive the National Minimum Wage rate applicable to your age.

For example, an apprentice aged 21 who has completed the first year of their apprenticeship would currently normally be entitled to at least £12.71 per hour.

Am I Entitled to an Annual Pay Rise?

Not necessarily.

There is no general statutory right requiring an employer to give every employee an annual pay increase.

You may, however, have a right to increased pay where:

• Your contract guarantees a pay rise
• A collective agreement provides for an increase
• You become entitled to a higher National Minimum Wage rate
• The statutory minimum wage itself increases

A contractual pay rise might depend on factors such as:

• Completing a particular period of service
• Meeting agreed performance targets
• Promotion
• Progressing through a contractual pay scale

If a pay rise is described as discretionary, the employer generally has more flexibility about whether it is awarded.

However, discretion should still be exercised lawfully and should not be used in a discriminatory or irrational way.

What if Other Employees Receive a Pay Rise but I Do Not?

This does not automatically mean your employer has acted unlawfully.

Different employees may legitimately receive different increases because of:

• Performance
• Seniority
• Role
• Market rates
• Promotion
• Contractual arrangements

However, your employer must still comply with:

• Equal pay law
• Discrimination law
• Contractual obligations

For example, it could be unlawful to deny a pay rise because of a protected characteristic such as sex, race, disability or age.

Am I Entitled to Extra Pay for Working on a Bank Holiday?

There is no general statutory right to receive:

• Time and a half
• Double pay
• Another premium rate

simply because you work on a bank holiday.

Your entitlement will usually depend on your employment contract.

A right to enhanced bank holiday pay can also potentially arise through a sufficiently clear and established contractual practice.

You should therefore check:

• Your contract
• Staff handbook
• Collective agreement
• Previous payment arrangements

There is also no general legal right to have bank holidays off work.

For further guidance, see Holiday Entitlement and Holiday Pay.

Can My Employer Cut My Pay Without My Consent?

Your salary is normally a contractual term, so an employer should not simply reduce it without an appropriate contractual basis or your agreement.

A unilateral reduction in pay could potentially amount to:

• Breach of contract
• Unlawful deduction from wages
• A serious contractual breach capable of contributing to a constructive dismissal claim

However, employers sometimes propose pay reductions because of:

• Financial difficulties
• Restructuring
• Changes to roles
• Changes to working hours
• Wider cost-saving measures

You may choose to agree to a temporary or permanent reduction, particularly where the alternative could involve redundancies.

Any agreement should ideally be clearly recorded in writing.

What if I Refuse to Agree to a Pay Cut?

Your employer should consult with you and genuinely try to reach agreement.

If agreement cannot be reached, an employer may in some circumstances consider terminating the existing contract and offering continued employment on new terms.

This is commonly called:

• Dismissal and re-engagement
• Fire and rehire

As at September 2026, employers considering this approach should comply with the statutory Code of Practice on dismissal and re-engagement.

Dismissal and re-engagement should be treated as a last resort after reasonable attempts have been made to reach agreement through meaningful consultation.

The employer should not threaten dismissal simply to place improper pressure on employees.

Can I Claim Unfair Dismissal if I Am Dismissed for Refusing a Pay Cut?

Potentially.

Ending your original employment contract is legally a dismissal even if your employer immediately offers to employ you again on different terms.

Where ordinary unfair dismissal protection applies, your employer would need to establish a potentially fair reason for dismissal and show that it acted reasonably.

An employer may argue that the proposed contractual change was necessary for a substantial business reason.

A Tribunal can consider matters such as:

• Why the change was required
• Whether there was a genuine business reason
• Whether employees were properly consulted
• Whether alternatives were considered
• The impact of the proposed change
• Whether dismissal was genuinely a last resort
• Whether the employer followed the dismissal and re-engagement Code

An unreasonable failure to comply with the statutory Code can also affect compensation in relevant Tribunal proceedings.

For further guidance, see Unfair Dismissal.

What if 20 or More Employees Are Being Dismissed and Re-Engaged?

Additional collective consultation obligations may apply.

If an employer proposes to dismiss and re-engage 20 or more employees at one establishment within a 90-day period, the statutory collective consultation rules can be triggered.

The employer may then need to consult:

• Recognised trade union representatives
• Elected employee representatives

depending on the circumstances.

For further guidance, see Collective Redundancies.

Can My Employer Change My Pay Date?

Potentially, but whether your employer can do this without agreement depends on the contractual arrangements.

The date on which you are paid may form part of your employment contract or written terms.

For example, your contract might say that salary will be paid:

• On the final working day of each month
• On the 25th of every month
• Every Friday

If the pay date is a contractual term, changing it without agreement could amount to a breach of contract.

An employer wishing to change the pay date should normally explain:

• Why the change is required
• When it will take effect
• How employees will be affected
• Whether any transitional arrangements are available

This can be especially important where moving a pay date creates a longer gap between salary payments.

What if I Do Not Agree to a Change in Pay Date?

Your employer should normally consult with you and try to reach agreement where the pay date is contractual.

If employees refuse to accept the change, an employer may ultimately consider dismissal and re-engagement, but this should be a last resort and the applicable legal procedure should be followed.

Whether a dismissal is fair will depend on the employer's business reasons, consultation and the overall circumstances.

A change in pay date will not automatically amount to constructive dismissal, although a serious unilateral contractual breach could potentially contribute to such a claim.

For further guidance, see Constructive Dismissal.

My Employer Has Underpaid Me. What Should I Do?

If you believe you have been paid incorrectly, the first step will often be to check:

• Your payslip
• Employment contract
• Working hours
• Tax deductions
• Pension deductions
• Overtime
• Holiday
• Sick pay
• Bonus or commission

You should then raise the issue with your employer or payroll team.

There may be a straightforward explanation, such as:

• A payroll error
• A change in tax code
• A pension contribution
• An authorised deduction

If there has been a genuine mistake, the employer should normally correct it promptly.

What if My Employer Refuses to Pay Money I Am Owed?

If the issue cannot be resolved informally, you may consider raising a formal Grievance at Work.

Depending on the payment concerned, you may also potentially have a claim for an Unlawful Deduction from Wages.

Unlawful deductions can potentially involve unpaid or underpaid:

• Salary
• Wages
• Commission
• Holiday pay
• Other qualifying payments

You should act promptly because Employment Tribunal claims are subject to strict limitation periods.

Am I Entitled to Be Paid for Overtime?

There is no general statutory right to receive additional overtime pay simply because you work beyond your normal contractual hours.

Your entitlement will normally depend on your employment contract.

The contract may provide that overtime is:

• Paid at the normal hourly rate
• Paid at an enhanced rate
• Compensated through time off in lieu
• Included within your salary
• Unpaid

If your employer has agreed to pay overtime, the applicable rate should normally be determined by the contractual arrangement.

What if I Am Paid an Annual Salary?

Many salaried employees are not separately paid for every additional hour worked.

For example, a contract may state that the employee is required to work additional reasonable hours when necessary without further payment.

However, the employer must still comply with the National Minimum Wage.

If the number of hours you are required to work means that your pay falls below the applicable minimum wage rate for the relevant pay reference period, additional payment may be required.

Other Working Time Regulations protections can also apply separately.

What if I Am Paid by the Hour?

If you are an hourly-paid worker, you will normally be entitled to be paid for the hours you work in accordance with your contractual rate.

However, this does not automatically mean that additional hours must be paid at an enhanced overtime rate.

For example, your contract might provide:

• £15 per hour for all hours
• Time and a half after a particular number of hours
• Double time in specified circumstances

The contractual wording should be checked.

Am I Entitled to Extra Pay for Working on a Sunday?

There is no general statutory right to a higher rate of pay simply because you work on a Sunday.

Sunday pay will normally depend on your contract or another contractual arrangement.

An employer might voluntarily provide:

• Time and a half
• Double pay
• A fixed premium
• Time off in lieu

If an employer has consistently paid an enhanced Sunday rate over a significant period, there can sometimes be arguments about whether that arrangement has become contractual through custom and practice.

Do Shop and Betting Workers Have Special Sunday Rights?

Yes.

Special statutory rules apply to many people working in:

• Shops
• Betting premises

Most qualifying shop and betting workers can opt out of Sunday working, even where their contract originally required it, subject to the statutory rules and notice requirements.

Different rules can apply depending on matters including the type and size of the shop.

Workers employed only to work on Sundays are generally excluded from the ordinary opt-out right.

There are also statutory protections against dismissal or detrimental treatment because a qualifying worker has exercised relevant Sunday-working rights.

However, these protections do not create an automatic entitlement to enhanced Sunday pay.

The amount paid for Sunday work remains primarily a contractual matter.