This form must be used in every case where an employee contends he or she is not in a financial position to repay an overpayment. It is extremely important to ensure that the employee clearly justifies why this applies.
The form requests a number of personal details from the employee, including information about other income. Reasons for this are twofold.
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It is quite reasonable to take into account income from sources other than direct from the employee.
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Example |
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An employee contends that she is suffering financial hardship as three quarters of her income is devoted to paying a mortgage. |
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While this alone may adequately demonstrate hardship applies in this case, additional income from the partner of $50,000 is used to maintain a comfortable lifestyle, and supports that the employee is capable of repaying the overpayment. |
As the example demonstrates, it is not necessarily equitable to determine an employee's capacity to repay on his or her income alone.
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The request to reduce repayment, or write off or waive an overpayment is a serious matter, and the employee quite rightly should be providing true and accurate information in support of his or her particular case.