Former employer made a payroll error, wants money back!

So here are my questions: ANSWERS
1. Do I have a moral and/or legal obligation to return money in this scenario?: MORAL OBLIGATION - IF YOU ARE FULLY CONVINCED THAT THERE WAS OVERPAYMENT, THEN YOU REALLY HAVE A MORAL OBLIGATION TO RETURN THE EXTRA AMOUNT. LEGAL OBLIGATION - THE LAW PROVIDES "IF SOMETHING IS RECIEVED WHEN THERE IS NO RIGHT TO DEMAND IT, AND IT WAS UNDULY DELIVERED THROUGH MISTAKE, THE OBLIGATION TO RETURN IT ARISES." (ART. 2154 CIVIL CODE OF THE PHIL.) YOUR FORMER EMPLOYER COULD FILE A CIVIL CASE AGAINST YOU FOR THE RECOVERY OF THE EXCESS.

2 . They said they will shoulder some of the amount (specifically the taxes and the SSS contributions that are irrecoverable). What percentage of my payables should I agree on? : THEY REALLY SHOULD SHOULDER THE MANDATORY CONTRIBUTIONS BECAUSE IT RESULTED DUE TO THEIR FAULT. YOU ARE ENTITLED TO RECIEVE YOUR REGULAR RATE PLUS WHATEVER OVERTIME PAY YOU ARE ENTITLED TO. WHATEVER IS IN EXCESS OF THAT, YOU ARE SUPPOSED TO RETURN IT WITHOUT INTEREST BECAUSE YOU WERE IN GOOD FAITH. HOWEVER, YOU CAN NEGOTIATE FOR A REDUCTION OF THE EXCESS AMOUNT. EXAMPLE: IF THEY ARE ASKING FOR A TOTAL OF 20 THOUSAND REFUND, YOU START BARGAINING TO PAY ONLY 10 THOU BECAUSE IT IS WHAT YOU CAN AFFORD. THEY WILL SURELY RAISE THE 10 THOU THEN YOU TRY TO HAGGLE FOR A LOWER AMOUNT THAT WHAT THEY COUNTER-OFFERED UNTIL YOU BOTH ARRIVE AT A COMMON AMOUNT. DISKARTEHAN MO NA. "KAYO NAMAN, PAG PINABAYARAN NINYO LAHAT SA KIN YAN, DI WALA NANG MAKAIN ANG MGA PAMILYA KO. PAMASKO NA LANG NINYO SA KIN YUNG IBA DAHIL PARANG GANUN NAMAN ANG GINAWA NINYO. HALA KAYO, KELANGAN PA BANG UMIYAK AKO AT MAGLUPASAY SA HARAP NINYO? ETC." BAHALA KA NG HANAPIN ANG KILITI NILA.

3. Do they have the right to demand a specific amount and a deadline for settlement?: PROVIDED THEY CORRECTLY COMPUTED THE EXCESS, THEY HAVE THE RIGHT TO DEMAND IT. TO SET A DEADLINE HOWEVER AND TREAT YOU LIKE YOU DECIEVED THEM WOULD NOT BE RIGHT AS IT WAS THEIR FAULT THAT CAUSED THE OVERPAYMENT. BOTH OF YOU SHOULD AMICABLY SETTLE THE MATTER WITHOUT THREATENING AS IF WALA KAYONG PINAGSAMAHAN. WALA NAMANG TAKUTAN KAMO SA KANILA.

Here is what I might do if i were in your position and they are setting a deadline. What is the deadline for? They will sue if i do not pay on time? I will honestly and plainly tell them that we should negotiate/talk on the same level without threatening from any side because no one wanted to be in the situation where we are. They should give me much leeway as long as some amount will be returned to them. They should realize that if they hurt my feelings and refuse to pay, they will be forced to spend an amount more than what they are seeking to recover and i will also be forced to defend myself and sue them for damages based on their high handed treatment of me. IF THIS HAPPENS HOWEVER, BOTH OF US WILL BE LOSERS AND OUR LAWYERS WILL BE CRYING BECAUSE OF THE PITTANCE WE WILL BE PAYING THEM. (Just trying to lighten the situation but seriously, avoid losing your cool so as not to make the situation out of hand.

God bless you and i hope that helped.

Hi RCHRD.

Thanks so much for taking the time to reply thoroughly. I hope it's ok to ask some follow-ups:

When the time comes for me and my former employer to negotiate, what are the terms that are ok for me to put my signature on?

There's the payment amount that I will have to commit to. But from your reply, I understand they have no right to demand a deadline. What shall I do in case they want me to sign a payment scheme that has deadlines?

haggle first for the lowest amount you can make them agree. When this is done, do not consent to a very short time to pay, ask instead for a longer time that is convenient enough for you to earn/produce the amount for payment. They are not actually without any right to ask for a deadline but for them to insist on a very short time and even insinuate of suing if you do not pay immediately shows that they do not understand that they are negotiating with a co-equal as both of you are in good faith. Hindi sila dapat umasta na para kang magnanakaw o manloloko. In other words, they should negotiate - not dictate.

Thanks so much rchrd!

I will post the result of our meeting and other updates. So that others may learn from this.