Probably the current employer is playing games and its worth putting them to proof.

But from 1st 12th they are your employees and your liability

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.

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.

Great advice from Keith and Elizabeth
It's a good illustration of "caveat emptor" or "let the buyer beware". Your due diligence has successfully identified a future cost that the vendor has not taken active steps to highlight (but they have no obligation to do so).

For me it would be a matter of calculating the added cost and impact on your company (27 days of salary per person, plus social security, plus pension contributions, life insurance contributions etc.). This figure should then be used to negotiate the purchase price downwards. Been there. Seen it. Done It. Usually the selling company will hold up there hands and say 'you got us there' and swallow the cost reduction.

If they don't, it implies that they may well not have been squeaky cleanin other areas and that there could well be other expensive surprises if the transfer goes ahead. More importantlyyour TUPE lead team should be formally notified of the risk, and then drive appropriate negotiations either for a price reduction or for a commitment that if certain types of costs are subsequently found, the vendor will accept a back-charge after TUPE occurs.

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.

This is a really good question because I am going through the same situation. We have just taken over a contract (January 2018), and the previous company still has not sent us an updated TUPE information with Holiday Balance even after several request. The worst part, their ex employees received their payslips and all the holidays they booked and took in December 2017 have not been paid if they were not accrued. some of them felt short of 12 days of pay. The previous company has answered to the employees that it is not their responsibility to pay any non accrued holidays even if the said holidays were booked back in March 2017. are they allowed to do so?