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Change to employer liability for holiday pay for transferred employees…

The Court of Appeal has reversed a High Court finding on who is liable to pay employees for holiday pay when an employee is transferred as a vulnerable employee (catering, cleaning etc).

Until this Court of Appeal decision the position was that the old employer was liable to pay the new employer for the untaken holiday leave of transferring employees.

The Court of Appeal has held that the old employer has no liability to pay the new employer for pre-transfer entitlements.

This is an unintended hole in the law and legislation is before Parliament to require the old employer to pay the new employer for these holiday entitlements, so the hole may soon disappear.

If you need assistance dealing with your rights or obligation in relation to transferring employees and their leave payments please give me a call on (04) 473 6850.