HSE not entitled to claim back PPARS overpayments

THE Labour Court has told the Health Service Executive it is not entitled to claim back overpayments made to more than 100 nurses through the controversial Personal Payroll and Related Systems (PPARS).

The case was taken before the court by the HSE North West and the Irish Nurses’ Organisation (INO).

The court was told the claim related to an overpayment totalling €9,000 made to nursing staff during the introduction of the PPARS in June 2004.

The system operated for a 15-month period calculating premium payments on night duty which was based on a “start of shift” system instead of the previous method, which was based on a 24-hour clock system.

The change of system gave rise to underpayments and overpayments.

The union disputed the method and despite being brought to their immediate attention, the HSE did not revert back to the original payment method until August 2005.

At that point the HSE repaid underpayments and also tried to recoup the overpayments.

The union refused to pay on the basis that, it argued, the change in payment system had been unilaterally introduced and HSE had reverted back following intervention by the National Steering Group.

In its recommendation, the court said the union fully accepted the employer’s right to recoup overpayments made to staff which arise due to administrative errors.

“However, the court is of the view that the circumstances in this case are entirely different and consequently, the court does not support the HSE’s position to seek recoupment of the overpayments made in these circumstances and therefore finds in favour of the union’s position.”

The HSE said it would accept the court’s decision.

Dave Hughes of the INO said he hoped the court’s decision would provide “a valuable lesson to the HSE about the arrogance with which it pursues projects which are deemed to be their absolute requirement regardless of whether or not they are appropriate for circumstances into which they are introduced”.