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How to manage overpayment

While underpaying employees may be getting a lot of attention lately, the incidence of businesses overpaying staff tends to happen at the same rate. Overpayments can occur when an employer mistakenly believes an employee is entitled to the pay or because of a payroll error. However, the employee has no legal obligation to pay back an overpayment under the Fair Work Act. If an employer tries to sack an employee for not agreeing to an overpayment correction, they can be sued for wrongful terminati