I have been told I was overpaid. Can my employer deduct money from my wages without my agreement?

The Employment Rights Act allows an employer to recover overpayment of wages, which includes expenses and other allowances.

Such a deduction from wages would, therefore be lawful, although the Employment Appeal Tribunal has ruled, in one case, that it only applies to the last pay period.

However there may be occasions where the overpayment, was the result of an 'error of law', rather than an 'error of fact'. In other words the overpayment is the result of a misinterpretation of some regulation rather than a simple clerical error.

Where the worker genuinely believed he or she was entitled to the overpayment and had spent the money in good faith a civil court might decide that the employer was not entitled to recover.