Bought annual leave: HR mistake

[OhhBiskits]

Last May I bought a week’s extra annual leave from my organisation (a charity), as all employees are allowed to do. I’ve just been informed by HR that they forgot to charge for it and would be taking a week’s AL from my allocation this year to make up for it.

If it was a private company I’d be minded to go back to them and say, your mistake, too late, just write it off. I feel bad doing this to a (national) charity. What do you think? Does anyone have any precedent for this type of experience that they can share?

Have you offered to pay for it?

Yes, can’t they just charge you for it in the same way they should have last year?

I’d also offer to pay back a small amount monthly to cover it, while pointing out it’s their mistake!! I’d be furious tbh

You would also be responsible for making sure it was paid for last year.
It's most likely to be in your contract that any underpayments, however they have occurred, will need to be repaid.

Can't they just charge you for it now? If you've had a pay rise (or are due one in this annual leave year) then this year's leave is 'worth ' more so surely it's unfair for them to take it as like for like.

Does it take you under the national legal minimum?

I'd do this.

If deducting one week from this year's allocation takes you below 5.6 weeks (including bank holidays), they cannot do this. They can, however, ask you to pay back the money you should have been charged last year.

Thanks all for your help. I’ve already purchased another extra week for this year so it wouldn’t put me under the legal minimum (good to know this exists though, I wasn’t aware of that).

I didn’t notice at the time that I hadn’t been charged, yes that is on me. I’ll offer to pay it back in increments and see what they say.

Update: They said because I’ve already bought the maximum extra AL for this year, I can request last year’s as unpaid leave this year. Which would essentially be paying it back, although trickier to do gradually. Thanks again for all your advice, it was very helpful.

May not be relevant but I purchased extra AL before and didn't realise it impacts your pension payments where I work as well. If I'd have known I would've paid the minimal amount that it was to top it up. Just a thought.

Oh that’s interesting @seratoninmoonbeams, thanks. I’ll look into it.

The advice above was incorrect. It couldn't put you under the minimum wage unless you were already under it! You aren't really "buying holiday", you are actually working less hours. You are spreading the cost of an unpaid week over a year. So you are (a) never going below the minimum wage even if you are on a low wage and (b) this is therefore also a wage payment error so they are allowed to deduct it without a clause in your contract to deduct it.

The reason this impacts on pension is precisely because you are effectively "cutting your working hours".

If your employer agrees, the cheapest way to pay it back would be a half day a month because that would have minimal impact on your wage - most people can lose a half day a month and barely notice it so it's likley to have the least impact that way.

I think PPs meant the minimum legal holiday entitlement, not minimum wage.

Ah you may be correct. I read it as taking the overpayment produced back, which they would be entitled to take. it would be moot because either way the employer could find a way to reclaim it.

@Quveas Thanks. Half a day a month would have been ideal but I’m having to take it as unpaid leave. Which is more admin, trying to remember to spread that over the year, but not worth arguing about. Cheers for clarifying the points made previously.

That's a tough decision on their part. I'd have hoped they'd be a bit more flexible. I hope you remember this when they are looking for flexibility from you.

Thanks for the support, it will make me less predisposed to be accommodating with that perspective.