Paul Holcroft, Managing Director of Croner gives employers the rundown to ensure that this doesn’t happen again.

When you think about how many staff in an organisation have similar names, the same surname, or even the exact same full name, it is easy to see how, without appropriate checks and balances in place, mix-ups like this can happen.

Whilst it is not usually going to involve the dizzying amounts that were probably involved with a Hollywood actor’s bonus for a blockbuster film, it is still important to make sure that the correct pay gets to the right person.

So, whatever the amounts involved, organisations need to take steps to stop such mistakes from happening.  Other methods of identification could be used so that all staff are allocated a unique employee number.

That way it is not just a name that is being relied upon. Having more than one person checking it all before the magic button is pressed and payment is sent, is also a good idea. As the saying goes, prevention is always better than cure. But if it does happen, whilst an express contractual right is not needed to deduct the overpayment from future salary, having such a clause will make the position clearer.

It is also always best to talk to the employee so they know when deductions will be made and can plan accordingly. In this case it is reported that as well as the money, a payslip was also sent identifying what the money was for, so the correct recipient of the money could be identified.

This can bring data protection issues so businesses should ensure that payslips when emailed are password protected and are carefully labelled. But, if there is a data protection breach, the Information Commissioner’s Office (ICO) should be informed within 72 hours.