Is what my employers have done legal?
Asked by mower man
I am a manager for a company that provides grounds maintenance to councils and housing trusts in 2007 my customer paid the invoice twice I was unaware of this until Sept 2008 at which point I emailed my line manager and managing director In April 2009 I find out that they never paid the money back instead it was used to reduce the company's bad debts This was done knowing that the sum of money was paid to us by mistake and the client is still unaware of there error to the best of my knowledge

Best Answer:
Of course it is not legal. If the bank credits you in error you have to pay it back. If a company sends you two items in error you have to return it etc Your company is committing theft. You personally are clear in that you informed your superiors. You could/should inform the customer of this anonymously if need be.

No it's not! - it's called fraud! Make damned sure you kept the e-mails; I find it best to send sensitive e-mails to my home account for safer storage - do this after you send the original - these mails you receive are then date-stamped, and cannot be tampered with. If you can prove that you informed the management appropriately, then you have less chance to be personally implicated in any wrong doing. Consult a solicitor if needs be! Good luck!
Answered by Modern Major General

What a conscientious person you are. Not only concerned with the customer but also the "right thing" to do. Problem is this: Do you have access to all the documents to prove what you say? If you are absolutely sure, then you have a delimma. Do you confront your employer or squeal to your customer to write the company a letter?? I frankly don't know how I'd handle it - If you can easily work for yourself?, if you have other employers anxious for your serices? From your intro I assume we aren't talking about some small amount. The decision on what to do may come to this: However your customer gets its money back will probably result in your being accused of telling the customer anyway- SO YOU NEED TO BE PREPARED. Maybe try something like this: Write a letter, memo, note, whatever, to your accounting department noting your recent discovery of the overpayment and how you feel the overpayment should be repayed as soon as possible so as not to jeopardize your company's good name and result in possibly losing a customer if they detect the error first. Place yourself as the innocent discoverer of a company error, with only the best interests of the company in mind going forward. After all, it is true that if I discovered I overpaid a company a year ago and I have to bring it to their attention, I'll find another company to do business with. Bottom line, your company's accounts are not in balance so long as the overpayment exists, and I suppose their applying the money to another account should consitute some kind of accounting inconsistency , or maybe fraud depending on how they did it. Good Luck
Answered by snvffy

No, this is not legal. Once the organisation was aware of the error they should have repaid the money to the client. However, you have done your bit - you've brought it to the attention of those above you who can rectify the situation. You can't, and shouldn't have to, do any more. I don't advise that you do anything further. There is one division of my own organisation who has taken part in somewhat fraudelent activities, and the manager who brought it to the attention of his superiors is now effectively being forced to resign. The organisation claims that he is being forced out due to his incompetence; he claims that it is not about incompetence but instead is about reporting fraudulent activities. I'm tempted to agree with him.
Answered by Cari