£80,000 error | Firm accidentally pays worker 367x their salary

Firm accidentally pays worker 367x their salary

Pay slip mistakes aren’t uncommon. An employee might complain that they’ve received less than they expected, or surprisingly ended up with more one month compared to another.

A company in Hungary accidentally paid one of their staff 367 times more than they had earned in a finance malfunction.

The unnamed employee worked for a company in Hungary for a short stint for which he was supposed to receive 260 Euros (£224), but his one-off employer accidentally sent him a significantly different amount of 92,549 Euros (£79,773).

After realising they had paid an incorrect amount, the company reached out to the employee to get it back. However, the worker said he didn’t have access to the account, and it later transpired that he had extracted over £13,000 worth of Euros at an ATM, a police investigation later revealed.

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The mishap happened because the worker provided a foreign bank account. He was supposed to have been paid 92,549 Hungarian Forints. But because he provided an Austrian bank account, he was given the same number in Euros instead.

The authorities in Hungary managed to seize the bank account and arranged for the money to be paid back, but reportedly only 72,000 Euros has been recovered so far while the unlawful worker has been charged and risks a large fine.

Finance mistakes

Depending on the size of a business, the HR and Finance role may be combined. Mistakes happen, but finance mistakes can have a significant impact on a firm’s growth or ability to survive, not to mention the cost of time and energy.

According to Oracle Netsuite, the root of many costly HR mistakes is a result of handful of things. This includes a lack of formal policies and procedures, a failure to record and update these policies, poor onboarding processes, poor retention planning, insufficient training and bad hiring. Therefore, companies that prioritise these areas as important to the HR function are more likely to withstand this risk.

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This comes at a time when HR leaders across the UK are have reported feeling stressed, burnt out and held back from strategic work due to inefficient payroll technology and processes, according to new research from Rippling. Those in medium to large businesses – employing 500-999 people – are most significantly impacted by the typically archaic payroll processes in place in their organisations. Indeed, nine in 10 (90%) payroll managers are forced to manually input data into spreadsheets every month in order to pay their employees.

Ted Eltringham, Business Growth Lead EMEA, at Rippling, commented: “Paying your employees is a critical function for every organisation, yet this research indicates the significant level of administrative burden it is placing on the teams responsible for it.

“With HR and finance teams caught up with such laborious repeat tasks, they aren’t afforded the time or headspace to perform more strategically valuable work – limiting their own personal and organisational growth.

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