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Historic holiday pay. How far back can you go?

Rob Thomas · 2015-02-04 12:04:45

Hello and thanks in advance for any help anyone can give me. Long story short, I'm looking at getting involved in a small company which has 10+ part time employees, (less than 20 hrs a week and only 6 months work in the year). It involves financial buy in and obligation for ongoing costs on my part. As part of due…

04-02-2015 12:04pm

#1

Rob Thomas

Registered Users, Registered Users 2 Posts: 488 ✭✭

Join Date: August 2014

Posts: 478

Hello and thanks in advance for any help anyone can give me.

Long story short, I'm looking at getting involved in a small company which has 10+ part time employees, (less than 20 hrs a week and only 6 months work in the year). It involves financial buy in and obligation for ongoing costs on my part.

As part of due diligence, it's arisen that the business structure has been quite informal and there are no real contracts of employment for the employees. Following on from this, it does not appear that holiday pay has been factored into account over the time they have worked there. Essentially they have been employed for part of the year and signed on for the rest and holidays were never granted or taken during the time they were actually working. One individual has now queried this and obviously I expect a snowball effect.

Some of the employees have worked there for over 10 years and my concern is with big payouts being due as I would be looking to formalise the employment arrangements and deal with any legacy problems.

I appreciate that I need proper professional advice on this, but my question is if there is any cut of period for back-pay of this type? I've been told that you generally are not obliged to go back more than a couple of years but different links I have looked up have said different things. If someone could confirm or otherwise or point me in the right direction on this specific timeframe it would help deal with 90% of my problem with this issue.

Thanks again.

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