Q: I would like some advice on whether the company can ask the employee (ex-employee) to pay back the following:
- Overpaid ordinary hours: they worked 10 hours but got paid 22 hours.
- Casual Holiday Pay 8%: as this was part of 22 hours paid.
- KiwiSaver 3%: Employer’s contribution.
- How do we treat PAYE in this situation? i.e. include in the calculation or not.
A: You can use the Wages Protection Act and request repayment, but they can just say no. Debt collection is another option if you have that in policy, but you can end up in the disputes tribunal (under 15K), and that may not work.
It’s not a win-win situation for the employer; its more now about stopping it from happening again with other employees.