I work full time in a shop. I've worked there for 4yrs. The shop was sold to new owners 2 years ago. The new owner has informed me that he is closing for up to 6 weeks for refurbishment. He has suggested he pays me with my annual holiday pay until the shop reopens. Need advice on this as it doesn't seem right that staff need to use their holidays to make sure they have a wage while the shop is closed.
It is not uncommon for businesses to close down over Christmas and treat it as holidays so staff get paid. I suppose the owner could lay people off instead- I think there is a process for that and it would be cheaper for the shop. Six weeks seems a long time though so it means you would not have any holiday pay left for the rest of the year.
Does your contract cover this?
No there's nothing on my contract about this only says we get 28 days holiday as I work 5 days this could cover me but means I won't be able to take anymore holidays through the year. Thought there maybe another solution. I won't be able to claim benefits as I'm not unemployed or looking for another job as our jobs are secure but shop needs to be totally redone.
I should perhaps be a bit more explicit about the lay-off implications if he has to pay you during lay-off.
Unless your contract allows for reduced pay as the result of lay-offs, you have to be paid. So your employer cannot force you to do what he is asking you to do (take holiday).
Set against that, you have to balance that he might declare you redundant if there are great cost implications to the business in paying you for six weeks to do nothing - so you may wish to compromise. A small business may not be able to fund the cost of paying you for all the six weeks.
I've pulled up what the shop workers Union USDAW says about this.
I'm not suggesting you consider joining - waste of money when there's so much from information around. But some industries have industry-wide agreements in force (which apply to all workers - not just Union members). This could apply to lay-offs - but it looks like USDAW has no such agreement.
https://www.usdaw.org.uk/Help-Advice/Workers-Rights/Lay-off-and-Short-time-Working
"You could apply for redundancy and claim redundancy pay if it’s been:
4 weeks in a row
6 weeks in a 13-week period"
Is it a major chain or a small local shop? Paying full pay without it counting as holiday pay could be financially ruinous for a very small business so the staff may want to get together to see how far they want to push this. They may be able to try to negotiate something teh business may be able to afford such as two weeks on full pay (no holidays) and the rest as holidays.
Good luck