Holiday Pay when company being taken over

iRileyx

Hi there, I was just wondering if someone could shed some light on my current predicament as I cant find anything online and it feels like I've been ripped off a little bit.

The company I work for has been sold to a new person, the current(now old) owner decided that they would pay us any unused holidays up until this week, which accrues to 3 weeks from that start of the year.

I've used 1 week of holiday so far, so received holiday pay for 2 weeks of unused holidays.

This is where it gets to where I feel like they've ripped me off, the holidays they've paid for they have only done as my contracted hours, because the contract is being "terminated" and we are getting new contracts with the new owners.

I'm only contracted to 12 hours. My previous weeks holiday I got 21 hours (because of how they have to average the last 52 weeks to work out holiday pay)

This means I've only been paid for 24 hours for 2 weeks holiday, when in theory if I had taken those holidays I would have got 42 hours.

Is my current, now old, employer right in doing it that way or should I have been entitled to the proper holiday pay of averaging the last 52 weeks. They seemed to make a point of it being that because the contract is being "terminated" thats why they are only paying contracted hours.

Any help is appreciated, Thankyou.

Marcon

iRileyx said:

Hi there, I was just wondering if someone could shed some light on my current predicament as I cant find anything online and it feels like I've been ripped off a little bit.

The company I work for has been sold to a new person, the current(now old) owner decided that they would pay us any unused holidays up until this week, which accrues to 3 weeks from that start of the year.

I've used 1 week of holiday so far, so received holiday pay for 2 weeks of unused holidays.

This is where it gets to where I feel like they've ripped me off, the holidays they've paid for they have only done as my contracted hours, because the contract is being "terminated" and we are getting new contracts with the new owners.

I'm only contracted to 12 hours. My previous weeks holiday I got 21 hours (because of how they have to average the last 52 weeks to work out holiday pay)

This means I've only been paid for 24 hours for 2 weeks holiday, when in theory if I had taken those holidays I would have got 42 hours.

Is my current, now old, employer right in doing it that way or should I have been entitled to the proper holiday pay of averaging the last 52 weeks. They seemed to make a point of it being that because the contract is being "terminated" thats why they are only paying contracted hours.

Any help is appreciated, Thankyou.

Ask them to confirm if this business sale is covered by TUPE. Even if it isn't, you can't simply impose new contracts on people without proper consultation processes.

Having a word with ACAS (free) might also be useful in terms of establishing whether correct procedures have been/are being followed: https://www.acas.org.uk/

DullGreyGuy

It would help if you knew the details of the deal a little better... you mention you currently work for a company and so you are that company's employee.

Is the buyer buying the company itself or just its assets? 
You say you will get a new contract with the new owners... are they another company or are you going to be employed by a partnership or such?

iRileyx

DullGreyGuy said:

It would help if you knew the details of the deal a little better... you mention you currently work for a company and so you are that company's employee.

Is the buyer buying the company itself or just its assets? 
You say you will get a new contract with the new owners... are they another company or are you going to be employed by a partnership or such?

Sorry I'll try to clarify.

The place I work is a franchise store, the store has been sold from one person to another, I say company because the owner has a company set up on companies house and it's that company that my contract is with and that pays my wages.

So I suppose the buyer has bought the assets and is then putting them under their own company

iRileyx

Marcon said:

iRileyx said:

Hi there, I was just wondering if someone could shed some light on my current predicament as I cant find anything online and it feels like I've been ripped off a little bit.

The company I work for has been sold to a new person, the current(now old) owner decided that they would pay us any unused holidays up until this week, which accrues to 3 weeks from that start of the year.

I've used 1 week of holiday so far, so received holiday pay for 2 weeks of unused holidays.

This is where it gets to where I feel like they've ripped me off, the holidays they've paid for they have only done as my contracted hours, because the contract is being "terminated" and we are getting new contracts with the new owners.

I'm only contracted to 12 hours. My previous weeks holiday I got 21 hours (because of how they have to average the last 52 weeks to work out holiday pay)

This means I've only been paid for 24 hours for 2 weeks holiday, when in theory if I had taken those holidays I would have got 42 hours.

Is my current, now old, employer right in doing it that way or should I have been entitled to the proper holiday pay of averaging the last 52 weeks. They seemed to make a point of it being that because the contract is being "terminated" thats why they are only paying contracted hours.

Any help is appreciated, Thankyou.

Ask them to confirm if this business sale is covered by TUPE. Even if it isn't, you can't simply impose new contracts on people without proper consultation processes.

Having a word with ACAS (free) might also be useful in terms of establishing whether correct procedures have been/are being followed: 

Hi, yes it is covered by TUPE, we've been told that our contracts will stay as they are, my main query/issue is with the holiday pay.

I've had a look on ACAS, Citizens Advice and google in general, but I can't find anything that states they would only have to pay contracted hours, everything seems to indicate they should have paid me the same as if I'd actually used the holidays(by averaging my hours from the last 52 weeks) as mentioned on the gov website as I'm a 'casual worker'

Marcon

iRileyx said:

Marcon said:

iRileyx said:

Hi there, I was just wondering if someone could shed some light on my current predicament as I cant find anything online and it feels like I've been ripped off a little bit.

The company I work for has been sold to a new person, the current(now old) owner decided that they would pay us any unused holidays up until this week, which accrues to 3 weeks from that start of the year.

I've used 1 week of holiday so far, so received holiday pay for 2 weeks of unused holidays.

This is where it gets to where I feel like they've ripped me off, the holidays they've paid for they have only done as my contracted hours, because the contract is being "terminated" and we are getting new contracts with the new owners.

I'm only contracted to 12 hours. My previous weeks holiday I got 21 hours (because of how they have to average the last 52 weeks to work out holiday pay)

This means I've only been paid for 24 hours for 2 weeks holiday, when in theory if I had taken those holidays I would have got 42 hours.

Is my current, now old, employer right in doing it that way or should I have been entitled to the proper holiday pay of averaging the last 52 weeks. They seemed to make a point of it being that because the contract is being "terminated" thats why they are only paying contracted hours.

Any help is appreciated, Thankyou.

Ask them to confirm if this business sale is covered by TUPE. Even if it isn't, you can't simply impose new contracts on people without proper consultation processes.

Having a word with ACAS (free) might also be useful in terms of establishing whether correct procedures have been/are being followed: 

Hi, yes it is covered by TUPE, we've been told that our contracts will stay as they are, my main query/issue is with the holiday pay.

I've had a look on ACAS, Citizens Advice and google in general, but I can't find anything that states they would only have to pay contracted hours, everything seems to indicate they should have paid me the same as if I'd actually used the holidays(by averaging my hours from the last 52 weeks) as mentioned on the gov website as I'm a 'casual worker'

Give ACAS's helpline a call in the morning - the number is on the link in my previous post.

timstyles

You are entitled to be paid holiday at the average of the previous 52 weeks, and you have been previously. Saying it is because your contract is being terminated is utter nonsense. Even if it were (and it's not because it is automatically transferred under TUPE) you would still be entitled to holiday based on the 52 week calculation.