Every Little Helps

What happens if someone is paid too much redundancy pay?

A redundancy pay story caught our eye the other week – as well it might


Tesco Chief Executive Dave Lewis admitted that between 200 and 300 former workers had been over or underpaid their due redundancy pay following an error. Some had been overpaid by as much as £2000.


As not many people could pull £2000 out of their pockets on demand, Tesco are magnanimously suggesting that anybody overpaid by more than £500 can keep £100 of it but must repay the rest. Anybody overpaid by less than £500 will be able to keep the lot.


Seems a bit unfair that somebody overpaid £499 can enjoy their unexpected windfall scot free while somebody overpaid £501 has to repay £400 of it.


Tesco said that those underpaid were paid the correct amount due within a couple of working days and that they would take into account individual circumstances regarding those overpaid.


Everybody makes mistakes and this is as good a reason as any to double check any redundancy settlement you are claiming or are entitled to.


We have an online calculator on our homepage to give you a breakdown on the various elements that make up an entitlement. You can also get in touch so one of our expert team can go through your circumstances with you can make sure you are receiving everything you are entitled to.


You’re more likely to be underpaid than overpaid, and it’s less likely your old employer will tell you. Even if you are already receiving redundancy payments, get in touch to make sure that you are getting everything that’s due.