Recovery of Overpayments/Underpayments Policy

Transcription

1 Recovery of Overpayments/Underpayments Policy Policy Number: 002 Supersedes: Classification Employment Version Date of Date of Date made Review Approved by: No EqIA: Approval: Active: Date: V5 W&OD Committee 15/03/ /03/ /03/2021 Brief Summary of Document: Scope: Standardisation of process to ensure the consistent management of a salary overpayment to an existing or ex-employee Hywel Dda University Health Board supports and encourages the efforts of volunteers for the benefit of patients, users of services and their relatives. The role of volunteers is complementary and not intended to be used to substitute the work of paid staff or fill temporary or vacant positions. Volunteers are not responsible for the provision of direct clinical care To be read in conjunction with: Owning Committee Executive Director: W&OD Committee Lisa Gostling Job Title Director of W&OD

2 Version no: Summary of Amendments: Reviews and updates Date Approved: 2 New Policy 9/10/12 3 Updates completed February Updates 19/5/ Full review 2017; minimal changes only 15/03/2018 Glossary of terms Term Definition Keywords overpayments Database No: 002 Page 2 of 14 Version 5

3 CONTENTS 1. INTRODUCTION POLICY STATEMENT SCOPE AIM OBJECTIVES OVERPAYMENT CASE PREVENTION RECOVERY OF OVERPAYMENTS RECOVERY OF OVERPAYMENTS EMPLOYEES WHO HAVE LEFT THE HEALTH BOARD PROCESS Current Employees Employees who have left the Health Board UNDERPAYMENT RESPONSIBILITIES Chief Executive Director of Workforce & Organisational Development The Health Board will: NWSSP Employment Services (Payroll) will: The employee will: The Manager will: TRAINING & AWARENESS IMPLEMENTATION APPENDIX 1 - OVERPAYMENT LETTER CURRENT EMPLOYEES APPENDIX 2 REMINDER LETTER CURRENT EMPLOYEES APPENDIX 3 FINAL REMINDER LETTER CURRENT EMPLOYEES APPENDIX 4 OVERPAYMENT LETTER EX-EMPLOYEE APPENDIX 5 REPAYMENT AGREEMENT LETTER APPENDIX 6 - AUTHORISATION OF DEDUCTIONS FOR OVERPAYMENTS Database No: 002 Page 3 of 14 Version 5

4 1. INTRODUCTION An overpayment of salary to an employee normally arises as the result of either an error of calculation, which results in a payment being made in error, or as the result of incorrect, insufficient or late notification of a change to the individual s circumstances or contract of employment. This procedure will standardise the process that will be followed to ensure the consistent management of a salary overpayment, made to either an existing or ex-employee of the Hywel Dda University Health Board. If an overpayment is made and as a result of a mistake of fact (for example the wrong details have been inserted on to the administrative paperwork or the wrong figure or incorrect sum of money has been input into the payroll system) then the recovery of the overpayment will be made on this basis. 2. POLICY STATEMENT The Health Board has a legal right to recover any overpayment where it arose from a mistake of fact. Whenever monies are to be recovered, the Health Board will aim to do so in a fair and reasonable manner. These payments are made in good faith and are deemed to be correct at the time of issue. Mistakes of fact are where the payment was inconsistent with the facts e.g. through clerical error, computer input, or procedural error. Money paid out under a mistake of fact is recoverable in law. In accordance with this policy statement and Welsh Government guidance, the Health Board must pursue the recovery of all amounts due to it as a result of such overpayments. 3. SCOPE To ensure that overpayments of salary are recovered in a fair and consistent way. 4. AIM The aim of the policy is to recover all overpayments made. 5. OBJECTIVES The aim of the policy will be achieved by the following objectives: By having a standardised process to ensure the consistent management of salary overpayments. 6. OVERPAYMENT CASE If an overpayment case is subsequently referred to the Health Board s nominated Local Counter Fraud Specialist for further investigation into the circumstances surrounding the overpayment, then the employee concerned will be informed in writing by the Head of Payroll. The letter will include reference to the fact that by receiving and retaining money from the overpayment, that he/she was not entitled to and also that he/she had made no effort to contact the Health Board to stop the payments being made or notify the Health Board of the overpayment it was therefore being considered that he/she may have committed the criminal offence of Retaining a Wrongful Credit, contrary to Section 24 of the Theft Act Database No: 002 Page 4 of 14 Version 5

5 7. PREVENTION In order to take measures to prevent an overpayment occurring, it is necessary to reduce the possibilities for the occurrence in the first instance. The main reason for overpayments occurring within the Health Board is the late notification of information i.e. late termination or change of circumstance after the effective date. The responsibility for the instigation of such information lies with the Manager/ Supervisor. It is therefore important that documents are completed and forwarded in ample time for action to be taken to ensure that overpayments do not arise. Termination forms should be completed as soon as the termination date is known. Usually this would be when the employee hands in their letter of resignation. Change forms should be completed as soon as the change is known and should not be in respect of retrospective dates. As a reduction of hours will impact on an employee s basic pay forward thinking is required. 8. RECOVERY OF OVERPAYMENTS In the event of an overpayment being identified by NWSSP Employment Services (Payroll), the payroll officer will write to the employee as soon as possible after the overpayment has been discovered (refer to Appendix 1). Where the individual agrees that an overpayment has occurred they will then be invited to discuss the repayment options and the timeframe for repayment. All overpayments should be repaid within the financial year in which they occur and within a timeframe of not more than 12 calendar months from the date the overpayment occurred. In cases where agreement cannot be reached with the employee to recover the full overpayment amount within the maximum timeframe, the matter will be escalated to the employees Line Manager, together with the Workforce Manager. They will be responsible for reaching agreement with the employee for the recovery of the full amount over the shortest time possible as set out in this policy. All instalments payable by staff will be recovered by deduction from salary. 9. RECOVERY OF OVERPAYMENTS EMPLOYEES WHO HAVE LEFT THE HEALTH BOARD Where an individual has already left the Health Board, the responsibility for the recovery of the overpayment will rest with the Health Board s Finance Department. In such cases, the amount of overpayment will be calculated by NWSSP Employment Services (Payroll) and notified in writing to the individual and also to the Finance Department who will on receipt of the information invoice the individual for the overpaid amount. The Finance Department Manager will assume overall responsibility for the negotiation and recovery of monies. The amount of monies to be recovered will be the Net amount of the overpayment. 10. PROCESS Current Employees The individual will be sent a letter by NWSSP Employment Services (Payroll) in the first instance giving clear details of the gross and net amounts and also the reason for the overpayment and deadline for response. A copy of this letter can be found in Appendix 1. Database No: 002 Page 5 of 14 Version 5

6 The letter of notification will request that the individual contact the writer to discuss the overpayment and the options available for the repayment of the overpaid amount. The individual is required to respond to the letter and will need to confirm whether they agree or disagree with the overpayment within 15 calendar days. Where the individual agrees that an overpayment has occurred, they will have to provide confirmation of their intention to repay the amount in line with the timeframe as set out in this policy. Where the employee disagrees that an overpayment has occurred, this may be raised via the Grievance Procedure. Where the employee agrees that they have been overpaid they will be advised that the amount, as verbally agreed during the conversation will be deducted from their salary. They will be required to sign a Deduction Authorisation Repayment form (Appendix 6) which will be completed by NWSSP following the discussion which will be forwarded to the individual under a covering letter. No changes to the agreed repayment amount will be permitted without the agreement of the Health Board Employees who have left the Health Board Where an individual has left the employment of the Health Board they will be invoiced by the Finance Department following receipt of the original letter of notification and advised that they should repay the amount by forwarding a cheque for the full amount or agree with the Finance Department for a repayment plan. Should the individual dispute the overpayment claim they should liaise directly with the Finance Department who will in turn work with NWSSP to provide further detail/evidence as required. In cases where an individual can only repay the overpaid amount in instalments to avoid financial hardship, mutual agreement will be necessary on the terms of repayment between the two parties. If the individual does not respond to the initial invoice from the Finance Department a follow up reminder letter will be sent 28 days after the date of the invoice. This correspondence will advise the individual that they should respond within the next 15 calendar days. If no response is received to the reminder letter, this will mean that the debt is subject to the Health Boards debtors timeframe for payment, failure to pay within this timeframe will result in the debt being referred to the Health Board debt collecting agency and may impact detrimentally on the debtors credit rating. 11. UNDERPAYMENT If a member of staff believes they have been underpaid they must contact NWSSP Employment Services (Payroll) on clearly identifying why they believe there has been an underpayment. They will need their Staff number and copy pay slip available when calling payroll. Any underpayment confirmed by payroll will be corrected in the next monthly salary payment except in cases of financial hardship when an additional payment in the current month will be made subject to the amount of payment being in excess of RESPONSIBILITIES Chief Executive The Chief Executive of Hywel Dda University Health Board has overall responsibility for effective management of organisational policies relating to Hywel Dda University health board employees. Database No: 002 Page 6 of 14 Version 5

7 12.2. Director of Workforce & Organisational Development The Director of Workforce & OD has responsibility for ensuring that all employment polices are developed in line with employment legislation and practice and are reviewed and updated as required The Health Board will: Pay staff correctly and on time Distribute pay slips to appropriate locations Correct identified errors as soon as possible Rectify any identified overpayment with the co-operation of the individual Ensure pay related data and information is forwarded to the NWSSP Employment Services (Payroll) on a timely basis Inform relevant staff regarding cut off dates for submission of travel claims or Variation/timesheets NWSSP Employment Services (Payroll) will: Adhere to this policy for the recovery of any overpayments of salary Write to employees, providing them with details of the overpayment as soon as the matter has been identified enclosing details of the overpayment and the reason it occurred and requesting them to contact the Payroll office to agree arrangements to repay the overpayment. Maintain an accurate log of overpayments Monitor repayment conditions Where there is disagreement, the matter must be discussed with the Line manager and the Workforce department, with a view to agreeing appropriate terms of repayment The employee will: Check their pay slip on receipt Seek clarification from the NWSSP Employment Services (Payroll) if unsure of the amount or any payments indicated on their pay slip Immediately report any pay discrepancy/variances identified on their pay slip to their Line manager Have the right to resolve any identified overpayments without financial hardship Agree terms of repayment in appropriate circumstances and ensure payment of the full amount within the time frame stipulated in this policy Ensure they notify the Health Board of any change of address Access support and advice from staff side representatives/ Workforce Department/Line manager as appropriate The Manager will: Process documentation promptly and ensure submission by the 1 st of each month Negotiate the terms of the repayment of overpayments if required. If there is a dispute, they will act a point of communication between parties 13. TRAINING & AWARENESS All staff will be made aware of this policy upon commencement with the Health Board at either the Corporate Induction or the department induction. Copies can also be viewed on the Health Board s Intranet or obtained via the HR Department. Training on such policies may also be provided at Manager training sessions which all staff will be informed of via the Health Board Newsletter or their line manager in advance. Database No: 002 Page 7 of 14 Version 5

8 14. IMPLEMENTATION The policy will be advertised in Health Board publications/briefings and will be made available on the intranet. Managers who require training as a result of this policy should contact their Learning and Development Department. 14. MONITORING & REVIEW Monitoring of support enquiries will be carried out by the Workforce & OD Department and reported to the Hywel Dda Multi Agency Domestic Abuse Forum on a quarterly basis. Database No: 002 Page 8 of 14 Version 5

9 15. APPENDIX 1 - OVERPAYMENT LETTER CURRENT EMPLOYEES NWSSP Employment Services (Payroll) Cyflogau a Phensiwn, Hafan Derwen, Parc Dewi Sant, Caerfyrddin, SA31 3BB. Payroll & Pensions, Hafan Derwen, St. David s Park, Carmarthen, SA31 3BB. Rhif Ffôn/ Telephone: Ffacs/Fax: Ein Cyf/Our Ref Contact: (Insert date) PRIVATE & CONFIDENTIAL Dear OVERPAYMENT OF SALARY I regret to inform you that you have been overpaid for the period <insert date from to>. This overpayment occurred because < insert reason i.e. details of relevant change or making an administrative error>. The gross amount you have been overpaid by is <insert amount>. The above amount can be repaid by deduction from your salary which will automatically adjust the tax and national insurance previously deducted. Alternatively you can repay the whole amount by cheque made payable to the Hywel Dda University Health Board and forwarded to me at the above address. I should be grateful if you would contact NWSSP Employment Services (Payroll) on the telephone number quoted at the top of this letter (please see contact name) to discuss the overpayment and the repayment options that may be available, within 21 days of the date of this letter. Please accept my sincere apologies for this error and any inconvenience it may cause you. Yours sincerely Database No: 002 Page 9 of 14 Version 5

10 16. APPENDIX 2 REMINDER LETTER CURRENT EMPLOYEES NWSSP Employment Services (Payroll) Cyflogau a Phensiwn, Hafan Derwen, Parc Dewi Sant, Caerfyrddin, SA31 3BB. Payroll & Pensions, Hafan Derwen, St. David s Park, Carmarthen, SA31 3BB. Rhif Ffôn/ Telephone: Ffacs/Fax: Ein Cyf/Our Ref Contact: (Insert date) PRIVATE & CONFIDENTIAL Dear OVERPAYMENT OF SALARY REMINDER Further to my letter of the <insert date>, a copy of which I enclose, I have noted that to date you have not contacted this office to discuss or make arrangements to repay your overpayment of salary. I should be grateful if you would contact me to confirm your method of repayment or to discuss any queries regarding this matter within 14 days of the date of this letter. Should you have any general queries regarding this matter please do not hesitate to contact me. If you have already contacted this office and arranged your repayment please disregard this letter and accept my apologies for any inconvenience caused. Yours sincerely Database No: 002 Page 10 of 14 Version 5

11 17. APPENDIX 3 FINAL REMINDER LETTER CURRENT EMPLOYEES NWSSP Employment Services (Payroll) Cyflogau a Phensiwn, Hafan Derwen, Parc Dewi Sant, Caerfyrddin, SA31 3BB. Payroll & Pensions, Hafan Derwen, St. David s Park, Carmarthen, SA31 3BB. Rhif Ffôn/ Telephone: Ffacs/Fax: Ein Cyf/Our Ref Contact: (Insert date) PRIVATE & CONFIDENTIAL Dear OVERPAYMENT OF SALARY FINAL REMINDER Further to our letters of <insert dates of both letters> I have noted that to date you have not made any contact with this office regarding arrangements to repay the overpayment of salary. I have enclosed copies of the original correspondence previously sent to you. As instructed under the Health Board s Recovery of Overpayments Policy, I will now instruct the Hywel Dda Finance Department to raise an invoice in your name for the full amount of the overpayment. Yours sincerely Copy to: Finance Department, Hywel Dda University Health Board Database No: 002 Page 11 of 14 Version 5

12 18. APPENDIX 4 OVERPAYMENT LETTER EX-EMPLOYEE NWSSP Employment Services (Payroll) Cyflogau a Phensiwn, Hafan Derwen, Parc Dewi Sant, Caerfyrddin, SA31 3BB. Payroll & Pensions, Hafan Derwen, St. David s Park, Carmarthen, SA31 3BB. Rhif Ffôn/ Telephone: Ffacs/Fax: Ein Cyf/Our Ref Contact: (Insert date) PRIVATE & CONFIDENTIAL Dear OVERPAYMENT OF SALARY I regret to inform you that following your termination from the Hywel Dda University Health Board, you have been overpaid for the period <insert date from to >. The overpayment of <insert amount> arose due to the late notification of your termination to the Payroll Department. In <insert month> you were paid for the whole of the month when you were only entitled to pay up to and including <insert date>. The notification of your termination was not received until after the payroll had been processed and it was not possible to stop the payment going through. I enclose for your information a breakdown of the detail of the overpayment and would advise that in order to recover this amount you will now receive an invoice from the Health Board Finance Department. We apologise for any inconvenience caused by this overpayment. Any correspondence on this matter should be addressed to: Finance Department Hywel Dda University Health Board Old Nurses Home Glangwilli General Hospital Carmarthen SA31 2AF Yours sincerely Head of Payroll Cc Finance Department, Hywel Dda University Health Board Database No: 002 Page 12 of 14 Version 5

13 19. APPENDIX 5 REPAYMENT AGREEMENT LETTER NWSSP Employment Services (Payroll) Cyflogau a Phensiwn, Hafan Derwen, Parc Dewi Sant, Caerfyrddin, SA31 3BB. Payroll & Pensions, Hafan Derwen, St. David s Park, Carmarthen, SA31 3BB. Rhif Ffôn/ Telephone: Ffacs/Fax: Ein Cyf/Our Ref Contact: (Insert date) PRIVATE & CONFIDENTIAL Dear Further to our recent <telephone conversation/correspondence> regarding the repayment of the overpayment which occurred on your pay, I enclose for your information and signature a copy of the completed agreed repayment amounts which I would be grateful if you would now sign, date and return at your earliest convenience. As agreed in our discussion, the repayments will commence from <insert date of first recovery> taking your verbal agreement as authorisation for the first payment. Yours sincerely Head of Payroll Encl. Database No: 002 Page 13 of 14 Version 5

14 20. APPENDIX 6 - AUTHORISATION OF DEDUCTIONS FOR OVERPAYMENTS From... Our Ref In reply to your letter dated..., I hereby agree to repay the sum of... representing the overpayment received by myself, by monthly/weekly instalments by direct deductions from my salary/wages of... The first deduction to be made from my salary/wage on... In the event of me terminating my employment before the completion of the repayment, I hereby agree to pay the full amount outstanding and authorise such amount to be deducted from my pay/termination pay. Signed: Date: Signed: Payroll Officer Date: PLEASE RETURN YOUR SIGNED AND DATED AUTHORISATION FORM TO: NWSSP, Employment Services (Payroll), Hafan Derwen, St. David s Park, Carmarthen, SA31 3BB Database No: 002 Page 14 of 14 Version 5