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Accrued holidays during TUPE process

Michaela

We are currently going through the TUPE process at the moment and I have just received notice that several employees have 27 days annual leave left to take. to make matters worse their holiday year runs January -  December so when we take over on 1st December they will have all this leave to take.

I am wondering does any of the financial responsibility for the holiday pay fall to the current employer as this amount seems excessive to have at the end of the year. 

we usually accept holidays no issue but this situation will cause many problems to us both operational and financial.

any help would be much appreciated.

Parents
  • Hi Michaela, and welcome

    You may have done this already, but my first action would be to inform whoever is your project lead negotiating the insourcing of this unexpected additional cost. It might be that it can be accommodated somehow within the commercial agreement.

    As the employees come over with terms and conditions intact, you could find out whether the transferror has a position on carrying over holiday entitlement. If, as many organisations do, they have a limit on the number of days that may be carried over, you would be entitled to take the same position.

    Will you be keeping these staff? Perhaps there’s a compromise to be found, e.g. give them to the end of the next holiday year to take it or lose it.

    Ultimately, as Keith said, as of the transfer date they are your people, holiday entitlement and all.
Reply
  • Hi Michaela, and welcome

    You may have done this already, but my first action would be to inform whoever is your project lead negotiating the insourcing of this unexpected additional cost. It might be that it can be accommodated somehow within the commercial agreement.

    As the employees come over with terms and conditions intact, you could find out whether the transferror has a position on carrying over holiday entitlement. If, as many organisations do, they have a limit on the number of days that may be carried over, you would be entitled to take the same position.

    Will you be keeping these staff? Perhaps there’s a compromise to be found, e.g. give them to the end of the next holiday year to take it or lose it.

    Ultimately, as Keith said, as of the transfer date they are your people, holiday entitlement and all.
Children
  • in reply to Elizabeth Divver
    Many thanks for your feedback guys, i have requested a copy of their contract and a list of people who have booked leave for December. This may help to plan more from our side, rather than all employees tell me their off through December.
  • in reply to Michaela
    Michaela

    You should also ask the following specific question :

    "Based on the information in your possession today, please supply full details of expected outstanding leave as at 31/12/2017 and the associated salary costs of this provision (including employer's socal security and other on-costs)".
    This will put them in a position where they MUST give you honest and factual data rather than you having to make estimates or assumptions. Put the ball in their court, and secure the upper hand.
  • in reply to Ray
    thanks for the reply Ray, this however is a service provision transfer so its more they have earned the holidays with them not us. as mentioned usually we just honour them no issues but this one seems like a fast one.
    I have requested more info so i am going to see what comes back.