Council staff leavers overpaid 480k over 5 years

Westminster City Council reported overpayments of nearly £480,000 to staff over five years, largely due to a payroll policy affecting employees who leave after the payroll cut-off date. The council has recovered the majority of these funds but is still seeking to reclaim £99,000. A spokesperson emphasized the council's commitment to recovering overpayments, stating that invoices and letters are sent to former employees to facilitate repayment. The housing and commercial partnership department recorded the highest overpayment, amounting to £91,000, followed by children's services with £86,000. The council's outsourced payroll provider plays a crucial role in calculating overpayments and issuing follow-up communications.

This situation highlights the complexities of payroll management in large organizations, where changes in employment status can lead to financial discrepancies. The council's proactive measures include up to three follow-ups with former employees and engagement with debt recovery agencies when necessary. Such issues may prompt a review of payroll processes to enhance accuracy and compliance.