Employees at Glasgow City Council are facing demands to return a total of £40,000 after a longstanding payroll glitch led to years of unintended extra pay for five refuse collectors.
The error came to light during a routine internal review, revealing that the staff members had been receiving unentitled bonuses for contractual overtime on their monthly salaries. In some instances, the miscalculations stretched back as far as four years, with one worker amassing around £15,000 in surplus earnings.
The GMB union, representing the affected employees, has voiced concerns over the repayment schedule, which mandates deductions of £40 to £70 per month from their wages. Organisers have drawn stark parallels to a separate scandal involving high-level council executives who secured favourable early retirement packages without oversight from elected officials—yet only one of those executives has offered to reimburse any funds.
- Union Slams 'Unfair' Burden on Low-Wage Staff
Chris Mitchell, GMB convenor for the city's waste and recycling teams, described the overpayment as a genuine slip-up by the payroll team but argued it was unjust to saddle ordinary workers with the fallout. Speaking to BBC Scotland News, he highlighted the opacity of council payslips, which he likened to legal documents.
"You'd practically need a law degree to decipher a Glasgow City Council payslip," Mitchell explained. "For folks on contractual overtime, it doesn't scream out at you unless you're scrutinising every line or comparing notes with coworkers about their take-home pay."
He emphasised the real-world sting of the repayments: "Dropping £70 a month hits hard for many of our members. We're not on high salaries, and this blindsided everyone. It's essentially a stealth pay reduction—you adjust your spending assuming that's your norm, only to suddenly have less coming in."
Mitchell expressed ongoing exasperation, noting he'd flagged payment discrepancies before and was dismayed by the lack of system upgrades. "They promised a tougher oversight framework, but it's evidently not in place," he said. "Budget slashes across the council have fuelled these slip-ups, and guess who's paying the price? The lowest earners."
Under the Employment Rights Act 1996, employers like the council can recoup overpayments through wage deductions, provided they adhere to guidelines—such as notifying workers in advance and negotiating feasible instalment plans when a full refund isn't viable.
Preventing and Managing overpayments plays a huge part in payroll management, there is a potential here for Estoppel to come into play!
(See The Payroll Centre’s Webinar from December 2024 – Members Only!)
- Council's Fiscal Strains and Response
Glasgow City Council has grappled with mounting budgetary woes in recent years, prompting various cost-cutting drives. A spokesperson for the authority declined to delve into specifics of individual cases but reaffirmed their approach: "Whenever overpayments are identified, we work closely with employees to establish fair and sustainable repayment arrangements."
