Employer Taking Money from Your Monthly Pay to 'Pay' for Forced Leave?

Hi everyone,

Can an employer mandate that a certain amount of leave be taken at the end of the year (e.g. 3 weeks), and if you don't have enough leave balance to take those full 3 weeks, they take money out of your monthly salary to 'pay' for the leave that you haven't accrued yet?
Essentially getting a pay cut from your monthly pay so you 'pay' for the forced 3 weeks of leave at the end of the year?

Comments

  • +6

    why not just get unpaid leave

  • +5

    Employee taking money from your monthly pay to 'pay' for forced leave?

    Employee Employer taking money from your monthly pay to 'pay' for forced leave?

  • +1

    What does your EA / contract say?

  • +3

    You take leave without pay. Most offices shut down at end of year for the Christmas break. You should have 4weeks PA if on full time, so you can acrue unused leave for when you want to use them. I assume you just started a new job so no leave.

  • +3

    If you haven't accrued enough leave for the mandatory time off then you are taking unpaid leave (leaving your monthly pay short). I doubt that your company is taking any money from your pay for leave rather they are not paying you for the time not worked.

    • +1

      Unless OP has just badly worded a purchase leave policy.

  • Yep, can't go into holiday deficit and ask for work to continue paying you, what's stopping you from leaving and never coming back if that were the case?
    Taking unpaid leave or 'buying leave' if you don't have the accrued annual leave is standard procedure.

    Experience: Forced 2 week shutdown during summer at previous consulting firms.

    • A lot of places won't let you for precisely the reason you gave, but some will. I've done it twice (once with my leave going negative, once with sick leave going negative).

      I'd assume most managers are able to pretty reliably assess whether their worker is someone who would quit and vanish just because they have an extra week's worth of "free money"!

    • +1

      Some companies do allow you to go into deficit. My current one does, and at least 2 of my previous employers, one of which capped it at 5 days. And they could try and recoup the amount owing from you if you did happen to leave and not come back.

  • +1

    Essentially getting a pay cut from your monthly pay so you 'pay' for the forced 3 weeks of leave at the end of the year?

    You're choices are to have a small deduction each pay until xmas to make up for the leave short fall, so you continue to get your 'normal' pay over xmas leave period or don't take the deduction and when on 3 weeks company leave that you only have 1 weeks holiday pay, you'll only receive 1 weeks pay, and then 2 weeks of leave without pay aka no money.

    and yes, companies can enforce company wide shutdown periods like that.

  • +1

    Maybe. With the information you've provided that's as accurate as one can be.

  • Maybe they can, maybe they can't. This is a regular debate that goes around.

    Given times such as these, do you want to rock the boat, or just cop a haircut and move on? You might find it's better to take a small hit here, than a big hit somewhere else.

  • Your employer is helping you budget for the 3 weeks off. They don't want you returning to work and complaining you ran out of money after week 1.

    The result on 30/06/2021 will be the same

  • Leaves are based around business needs. It comes down to if you need the employer more (to adjust to your needs) or your employer needs you more (for business).

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