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Policy: Return of Accidentally Paid Funds

Objective: This policy is established to define the procedures and expectations regarding the return of funds that have been accidentally paid to employees. It aims to ensure transparency, honesty, and ethical conduct in handling financial transactions within the organization.

Scope: This policy applies to all employees of MCON, Ram, Southam, Uneeke, and Fluid Dynamics who may receive funds in error due to payroll, accounting, or any other administrative errors.

Procedure:

  1. Identification of Error:
    • Any employee who identifies that they have received funds in error must report it immediately to their supervisor or the finance department.
  2. Verification:
    • The finance department will conduct a thorough review to verify the error and confirm that an overpayment has occurred.
  3. Notification:
    • Once the error is verified, the employee will be notified promptly by the finance department or their supervisor, explaining the nature of the error and the need for the return of funds.
  4. Repayment Options:
    • Employees will be provided with options for repayment, including:
      • A lump-sum repayment.
      • A structured repayment plan, if the amount is substantial and a lump-sum payment is not feasible.
  5. Timeline for Repayment:
    • Employees are expected to return the overpaid funds within 10 days from the date of notification.
  6. Deduction from Future Payments:
    • If the overpayment is not returned within the specified timeframe, the organization reserves the right to deduct the overpaid amount from future salary payments.
  7. Confidentiality:
    • All communications and transactions related to the return of funds will be treated with strict confidentiality. Discussions will be limited to the concerned employee, their supervisor, and the finance department.
  8. Appeals:
    • In cases where employees believe an error has been made in identifying the overpayment, they may appeal the decision with proper documentation supporting their claim. The appeal should be submitted to the HR department within 5 days of the notification.
  9. Consequences of Non-Compliance:
    • Failure to adhere to this policy may result in disciplinary action, including but not limited to verbal or written warnings, suspension, or termination of employment as well as legal action to recover the overpaid funds due to “Unjust Enrichment”, Utah Code | Title 13 | Commerce and Trade | Uniform Trade Secrets Act, Section 4, Damages
    • 13-24-4.  Damages.

      (1) Except to the extent that a material and prejudicial change of position prior to acquiring knowledge or reason to know of misappropriation renders a monetary recovery inequitable, a complainant is entitled to recover damages for misappropriation. Damages can include both the actual loss caused by misappropriation and the unjust enrichment caused by misappropriation that is not taken into account in computing actual loss. In lieu of damages measured by any other methods, the damages caused by misappropriation may be measured by imposition of liability for a reasonable royalty for a misappropriator’s unauthorized disclosure or use of a trade secret.

      (2) If willful and malicious misappropriation exists, the court may award exemplary damages in an amount not exceeding twice any award made under Subsection (1).

Review: This policy will be reviewed periodically to ensure its effectiveness and relevance. Any updates or changes will be communicated to employees in a timely manner.