Holiday pay

[cloughdean]

Hello, hoping you can help. I am a sole trader in the process of selling my business. I have 3 staff members, who are all being transferred to the new owner, same terms & conditions etc. I would like to know how I deal with holidays accrued from the start of the year, up to when the business is sold. I know that they are all entitled to them, but if an employee hasn’t yet taken all of the holiday they would have accrued while I was the owner, do I pay them up when the business is transferred, do I pay it forward to the new owner, or is the new owner completely responsible? Thank you.

[atticus]

This would normally be dealt with on the basis that the new owner takes responsibility, but may seek an adjustment to the sale price, so that in effect you pay for accrued entitlement to the point of sale.

Have you given full disclosure to the buyer?

[dslippy]

Yes, the idea is that the employees go trough this without noticing much change, and the contract of sale of the business does what is needed to achieve this - a clause as Atti describes.