My partner and I are taking over a business which involves transferring existing staff over to our employ.
There is a bit of friction being caused as a lot of staff have lots of holidays owing.
I am trying to get the outgoing business owner to pro-rata the holiday pay rate and give me the funds as I believe that this is a cost which needs to be born by him. If I accept all staff as I have too, I am seriously out of pocket, one staff member is owed 24 days which equates to in excess of £1000.
What would be the resolution?
Hello, my name is ***** ***** it is my pleasure to assist you with your question today. In such situations , known as a TUPE transfer, once the staff transfer to the new employer it will have full liability for any outstanding holidays, which have been accrued in their previous employment. There is unfortunately no getting out of this because employees enjoy pretty strong rights in this respect. So if you take the business on with these employees you will become fully liable for their outstanding holidays. You cannot actually force the old employer to compensate you for these holidays and whilst such an agreement is possible as part of the business sale, this is something which is done at their own discretion. So you can negotiate with them over this and try to come to some agreement where they include such compensation as part of the business transfer but if that is not possible you cannot force them to accept such liability and will have to consider whether it is worth taking the business with these existing liabilities. If you do not believe it makes much business sense to you then you do not have to proceed with the purchase
Hope this clarifies your position? If you could please let me know that would be great, thank you
Hello, I see you have accessed and read my answer to your query. Please let me know if this has answered your original question or if you need me to clarify anything else for you in relation to this? I just need to know whether to close the question or not? Thanks