February 12, 2012
Professor Charles Benson
Unit 2 Question:
Ken, a salaried employee, was terminated from his company in April of this year. Business had been slow since the beginning of the year, and each of the operating plants had lain off workers. Ken’s dismissal was processed through the Human Resources Department, but the information was not relayed to the corporate payroll office. As had been the policy, checks for workers at remote sites were mailed to the employees. The mailing of Ken’s checks continued for the next four weekly paydays. It wasn’t until the monthly payroll reports were sent to Ken’s supervisor that the error was detected. Ken refused to return the four extra checks. What actions should the company take?
The break down in communication accrued when the Human Resource Department did Not submit the proper paper work for Ken to the corporate payroll office. Since it was the fault of the company I do not feel that Ken should have to pay back the money unless it was specifically stated in the company’s personal policies. If it comes back to Ken being rehired by the company, then they can address the issue with him paying the extra money back from his paychecks. In looking for sources on the internet, I couldn’t find any laws regarding Ken’s issue. If he had signed a separation agreement that gave him severance pay or described in detail if such a mishap happened then the company could make Ken return the money that was paid to him. The company needs to rethink how they will lay employee off and how they can stop this from happening again. The department that handled Ken’s layoff should be looked into and find out where the mistake happened and correct the employee who had made the mistake by writing him/her up.