Authorisation to recover overpayment - v.2 - 20230620

Aug 31, 2026

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Authorisation to recover overpayment letter template for employers to notify an employee of a payroll error that resulted in an overpayment. The letter outlines the overpayment amount and key dates, then requests repayment by one of three options: deduction from net pay, a structured repayment plan with invoices, or repayment of the full amount via a single invoice. It includes response deadlines, confidentiality wording, and contact details.

LanguageEnglish

CategoryLetters

FormatDOCX

Pages2

Reading Time1 min

AccessFree to download

Employee conditions and entitlements

Purpose and overpayment details

Repayment options (Option 1/2/3)

Response deadline and confidentiality

Sign-off and contact information

TEMPLATE EMPLOYEE CONDITIONS AND ENTITLEMENTS Authorisation to recover overpayment [on Company letterhead] [insert date] Dear [insert name] The purpose of this letter is to inform you that, [insert company name] (Company) has discovered a [payroll] error that has resulted in you being overpaid the amount of [insert amount]. The details of this overpayment are as follows: [List the relevant dates and amounts of overpayment]. Given you were paid [insert amount] that you were not entitled to, the Company requests that you repay the full amount by one of these means: [For current employees only] at the foot of this letter please tick Option 1, sign, date and return this letter to authorise the deduction of [insert amount] per week/fortnight/month from your net pay (your superannuation and benefits will not be impacted) over [insert number] weeks/fortnights/months. If you choose this option, the first payment will be deducted on [insert date]. [For current or former employees] Option 2: you agree to a repayment plan of [insert amount] per week/fortnight/month over [insert number] weeks/fortnights/months. If you choose this option, please tick option 2 at the foot of this letter and sign, date and return the letter. The Company will then send you invoices for each payment and the first payment will be due on [insert date]. [For current or former employees] Option 3: You agree to repay the full amount of the overpayment totalling [insert amount]. If you choose this option, please tick option 3 at the foot of this letter and sign, date and return the letter. The Company will then send an invoice and the payment will be due on [insert date]. Please respond to this letter in writing with your preferred option by [insert date]. We sincerely apologise that this overpayment occurred and for any inconvenience repaying it may cause you. The error has now been rectified and your records have been updated accordingly. You will appreciate that the content of this letter is sensitive. Please keep it confidential (except to discuss it with your family or professional advisers). If you have any questions regarding this matter, please don’t hesitate to contact [insert name] on [insert number or email]. Yours sincerely [insert name] [insert title] [Company name] Option 1 Option 2 Option 3 Signed

FAQs

What does this authorisation letter notify the employee about?

It informs the employee that a payroll error has occurred and that they have been overpaid an identified amount.

How can the employee repay the overpayment?

The employee can choose between weekly/fortnightly/monthly deduction from net pay, agreeing to a repayment plan with invoices, or repaying the full amount via a single invoice.

What actions and deadlines are required from the employee?

The employee must select the preferred option, sign and return the letter by the stated date, and follow the payment due dates specified for the chosen option.

Aug 31, 2026

Upload by Miles