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Policy Overpayment of Wages Procedure

Overpayment of Wages Procedure


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Intent

This Procedure has been established to outline the process to be undertaken in the event that an overpayment to a Staff Member has occurred which the University may recover.

Scope

This procedure applies to all employees who are covered by the James Cook University (JCU) Enterprise Agreement.

Definitions

For a comprehensive list of definitions, please refer to the Human Resources Policy Glossary.

Introduction

Where a Staff Member has been provided with payment and/or monetary entitlements to which the Staff Member was not entitled, including salary, loadings and allowances, and other monetary benefits such as study assistance and leave, this represents an overpayment which the University may recover.

Procedure

1.   Authority to Deduct

Step

Action

1.

The University will inform the Staff Member as soon as practicable of any overpayment, providing written details of the overpayment, how it occurred, the proposed recovery arrangements, and options available for repayment such as lump sum payment or 10% of their fortnightly pay.

The Staff Member should consider the impact of the repayment period on the overall sum to be repaid to the University – see clause 2.

2.

Where an overpayment of wages occurs, the Staff Member is required to sign a deduction authority form to permit the University to deduct up to 10% of gross fortnightly salary, or greater amount as requested by the employee, including payment of the total amount of the overpayment.

3.

The Staff Member may seek a review of the amount of the overpayment, or the proposed recovery arrangements in accordance with the Overpayment of Wages Policy.

2.   Repayment period

2.1 Where an overpayment is repaid in full in the same financial year as the overpayment occurs, the amount repaid is equivalent to the net pay (i.e. the after tax amount).  This is because the University can reclaim the tax paid from the ATO if it occurs in the same financial year.

2.2 Where the overpayment is not repaid in the same financial year the full gross amount of the overpayment must be repaid (i.e. the net pay plus tax).  This is because the University cannot claim the tax back where it goes over financial years.

Related policy instruments

Overpayment of Wages Policy

James Cook University Enterprise Agreement

Schedules/Appendices

Nil

Administration

NOTE:  Printed copies of this procedure are uncontrolled, and currency can only be assured at the time of printing.

Approval Details

Policy Domain

Human Resources

Policy Custodian

Deputy Vice-Chancellor, Services and Resources

Approval Authority

Human Resources Committee

Date for next Major Review

01/09/2028

Revision History

Version

Approval date

Implementation date

Details

Author

23-1

01/09/202325/09/2023

Procedure established.

Senior Industrial Relations Specialist

Keywords

Overpayment, wages, repayment period.

Contact person

Manager, Industrial Relations and Policy