Employees pay when being transferred with a business

pinksponk
pinksponk Registered Posts: 57 Regular contributor ⭐
in General accounting discussion
I carry out payroll function with a client who is selling his business. The employees have rights and will be transferred with the business.

My question is that when I do up their final pay with the old employer and complete P45's etc, does the old employer owe them any outstanding holiday pay not taken during this employment or does the accrued holiday get transferred with the employees to the new employer. ??

Replies would be appreciated

Comments

  • farmergiles
    farmergiles Registered Posts: 1,693 Beyond epic contributor 🧙‍♂️
    If they are having their rights transferred to the new owner, surely it is a continuation of employment and all holiday accruals would be transferred as well.
    I would suggest checking this out with both the old owner and the new owner to ensure that is the way they want it doing.
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
    As far as ive treated it, it will be a brand new employer so any outstanding holidays will have to be paid a P45 issued and new employment started.

    This would be because they are new employer will have a totally different PAYE number and office reference, as well as contract. It saves problems later on in the year.

    You probly know this but say if there contract runs from Jan to Jan just calculate six months instead
  • groundy
    groundy Registered Posts: 495 Dedicated contributor 🦉
    It all depends on if the contracts are being transferred via TUPES (think thats right). This would usually be the case and therefore the holiday accrue passes to the new owner.
  • columbia
    columbia Registered Posts: 580 Epic contributor 🐘
    I was just going to put what Groundy suggested (I couldn't spell it either!!!)
  • Sevren
    Sevren Registered Posts: 101 Dedicated contributor 🦉
    columbia wrote: »
    I was just going to put what Groundy suggested (I couldn't spell it either!!!)

    I've been TUPE'd a few times and pay/entitlement just carries on seamlessly.

    I think that it is only pension schemes that don't automatically get transferred over, although I believe that this is achievable with agreement with the pension administrator.
  • pinksponk
    pinksponk Registered Posts: 57 Regular contributor ⭐
    Thanks for all replies. There is now a whole new issue. New Owner doesn't want staff and is expecting old owner to either sack them or make them redundant. Old owner doesn't want the expense of redundancy so sale is at stalemate. Old owner was also trying to pull a fast one taking advantage of new owners ignorance. He nearly got away with it but for a last minute question raised by new owners solicitor.

    I don't want to get in the middle of this, so I am staying well out of it. Some people are so unproffessional

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