I was recently employed by a UK company that paid all staff via an umbrella company. All staff had a contract of employment from the UK Ltd company, and in mine I was entitled to four weeks’ notice as well as 20 days paid holiday per year. The company was sold not long ago, and though the new owners promised to keep all staff employed, they did not. Two weeks after they had bought the company they called a meeting and terminated all contract. I was given a weeks’ notice and I was told that I would not be getting paid my untaken holiday pay because the new owners felt that while we have contracts of employment from the company they had purchased we were (they felt) employed not by the company they had bought but by the umbrella company and that because of this we were not entitled to any notice or for any compensation for unpaid holiday. Can this be true and legal? In my case, after the one weeks’ notice that they did pay, I am still owed almost £5k before taxes.
The umbrella company has kept quiet and refuses to comment on the situation.
Some people I have spoken to suggest that I use the ACAS service to dispute the payments, but ACAS themselves cannot tell me (and will not look at any contracts etc.) if I would be successful without me first having to raise the issue with the new company owners (which I am very keen to do only if I have a valid case).
Is there any way I can find out if I do have a right to demand the unpaid money?
Thank you!
The umbrella company has kept quiet and refuses to comment on the situation.
Some people I have spoken to suggest that I use the ACAS service to dispute the payments, but ACAS themselves cannot tell me (and will not look at any contracts etc.) if I would be successful without me first having to raise the issue with the new company owners (which I am very keen to do only if I have a valid case).
Is there any way I can find out if I do have a right to demand the unpaid money?
Thank you!


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