Discussion
Hi,
Not posted here in a while, well since I took over a business in fact! Been very hectic sorting out new contracts, trying to maintain customers and good relations with suppliers etc and generally sorting out and finding out about the business!!
One thing that came up yesterday is that one of the staff is going on holiday, which had been agreed beforehand (though the previous owner hadn't told me). She asked for her 2 weeks holiday pay...now given that i've only taken over the company for less than a month so that the previous owner has had the benefit of her employment for 9 months of the year am I still supposed to pay it her? She's part-time, working 16 hours a week...
I've got all 3 staff expecting holidays in the next month or so, did I get shafted on the takeover?
Not posted here in a while, well since I took over a business in fact! Been very hectic sorting out new contracts, trying to maintain customers and good relations with suppliers etc and generally sorting out and finding out about the business!!
One thing that came up yesterday is that one of the staff is going on holiday, which had been agreed beforehand (though the previous owner hadn't told me). She asked for her 2 weeks holiday pay...now given that i've only taken over the company for less than a month so that the previous owner has had the benefit of her employment for 9 months of the year am I still supposed to pay it her? She's part-time, working 16 hours a week...
I've got all 3 staff expecting holidays in the next month or so, did I get shafted on the takeover?
did your employees start a new contract with you or did you basically take over a running business and they have continued service?
if service is carried on, then you are due to pay them, if they all technically started new jobs with you, then they will only be due the days owed so far.
sounds like you have a large holiday bill to pay for myself, i tak eyou didnt think to ask about this when buying it?
if service is carried on, then you are due to pay them, if they all technically started new jobs with you, then they will only be due the days owed so far.
sounds like you have a large holiday bill to pay for myself, i tak eyou didnt think to ask about this when buying it?
Seany88 said:
Nope, to be honest I didn't even consider it and thought the solicitor handling the takeover would have made me aware of it if it was important?
The takeover was structured so that we bought the assets...is that effectively a new business then?
Oh Blimey.The takeover was structured so that we bought the assets...is that effectively a new business then?
Right. What have you done, then?
Are you a Limited Company? If so did you buy that Limited Company from the other bloke? If you DID buy the Company then you also bought the employees, employment contracts, holiday pay liabilities - EVERYTHING. That stuff you factor into the price.
On the other hand you say you "bought the assets". OK. This could mean you bought some equipment and premises from the bloke. Not the same thing at all. You would have needed to set up your own, new Limited Company and transferred the assets into it. You would also have needed to have offer the employees of the previously existing business jobs, formally, with job offer letters and employment contracts. Then they would have NEW jobs and the Holiday entitlement would be whatever you are obliged to provide from Statute and based on whatever written holiday policy you've decided on.
Which scenario sounds familiar?
In the former case their holiday entitlement stands - and you would be wise not to p
s off your workers by arguing about it. In the latter case you ought, really to have discussed this already.Errrm. I'm the HR Director.
I'm also a Director of a firm that flogs holiday booking entitlement/HR software etc. How many employees do you have? You might have a use for what we do...
Seany88 said:
I have 3 (soon to be 2 as one is retiring). My previously existing limited company bought the assets from their limited company...so that puts me in scenario 2 which would mean that ok i need to sort contracts etc but i'm clear for the holiday pay?
I suppose it depends on how much you want to ps off your employees? If someone took over the business I was working for and started out by shafting me out of my holiday pay, the very next thing I'd do would be to get on to a recruitment consultant and start looking for a new job.
If the employees are of no real value to the business and easily replaced, then I'd probably not pay them. If, on the other hand, they are of value, then you need to work out the potential cost of shafting them.
Scraggles said:
worse case scenario is that the OP declines to pay their holiday pay, they find a job on their holidays and all decline to come back and he gets to do all the work himself 
Arguably the worst case scenario is that they don't find another job on their holidays, and their bitterness between when they come back and when they do find another job actually causes the company active damage.Seany88 said:
I have 3 (soon to be 2 as one is retiring). My previously existing limited company bought the assets from their limited company...so that puts me in scenario 2 which would mean that ok i need to sort contracts etc but i'm clear for the holiday pay?
OK. Who do your employees now work for. Have you actually employed them, yet. If you haven't they can just walk away: which I expect would cause you some problems. If you have employed them - under what terms did you employ them - their contract will tell you what their holiday entitlement is.But I suspect you haven't formally employed them yet.
If this is the case you are in a position where you will need to negotiate to employ them. If I were you I would simply get them around a table and explain the process - resigning from their old jobs or being made redundant from them, joining your firm and negotiating contracts/pay/holidays and it will fall out from there...
I think you will end up paying them - there is a statutory entitlement after all - but at least you will have it under control and it will come out of this year's entitlement so they won't be able to take the piss and go on another fortnight's holiday in a few weeks time!
Their old boss, if he made them redundant, will owe them holiday pay for the days they didn't take whilst in his employ. YOU will owe them their statutory entitlement pro rata.
anonymous said:
[redacted]
He didn't buy the business. That's the problem. He bought assets from a business.It doesn't sound like there was anything formally agreed about the employees. Bit of a nightmare. For him and them.
Or was there?I would have thought the advising solicitor would have covered these issues...
Edited by Don on Sunday 20th September 09:05
The first para of OP post suggests the deal was more than just buying some physical assets. It also seems implicit that the employees from the 'previous' business are also still working in the 'new' business. Worst case scenario is TUPE transfer and all existing liabilities (bar a small handful which probably won't affect you) apply.
Unless paying the employees for this holiday is going to really damage the companies finances I would pay them but make it clear that from the start of next year, financial or physical what the holiday entitlements are. A few quid now to keep your staff happy is worth loads, do the bare minimum and your staff may choose to do the same. You could loose any overtime they do for you and any work outside of their contract, not a great position to put yourself in before you know for certain what everyone does etc.
Thanks for all the replies. Yes obviously I don't want to p*ss them off, I'd just like to know what i'm legally obliged to do, so that I can factor in future costs and possible acts of generosity! 
Your right there are no contracts, they're not particularly specialist jobs and I get people coming in all the time asking for work (as its pretty much just typical shop work) but I will probably give to them as a gesture of goodwill. What is the normal yearly entitlement for part-time staff and do you all normally give them January to December?
Your right there are no contracts, they're not particularly specialist jobs and I get people coming in all the time asking for work (as its pretty much just typical shop work) but I will probably give to them as a gesture of goodwill. What is the normal yearly entitlement for part-time staff and do you all normally give them January to December?
Seany88 said:
Thanks for all the replies. Yes obviously I don't want to p*ss them off, I'd just like to know what i'm legally obliged to do, so that I can factor in future costs and possible acts of generosity!
Your right there are no contracts, they're not particularly specialist jobs and I get people coming in all the time asking for work (as its pretty much just typical shop work) but I will probably give to them as a gesture of goodwill. What is the normal yearly entitlement for part-time staff and do you all normally give them January to December?
I would assume it's just the full-time allowance pro-rated, isn't it?Your right there are no contracts, they're not particularly specialist jobs and I get people coming in all the time asking for work (as its pretty much just typical shop work) but I will probably give to them as a gesture of goodwill. What is the normal yearly entitlement for part-time staff and do you all normally give them January to December?
Don!!Old thread, but going back to this - said employee has just given in her notice! Only a week's notice!
So I took over in September 09, she took 2 weeks holiday in November, and 1 last week. Legally she's entitled to 20 days pro-rata'd. She does 16.5 hours a week, so how do I work out entitlements etc? Do I date it from when I took over?
So I took over in September 09, she took 2 weeks holiday in November, and 1 last week. Legally she's entitled to 20 days pro-rata'd. She does 16.5 hours a week, so how do I work out entitlements etc? Do I date it from when I took over?
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