I'll answer that because bluemtnskier is a tard.
You guys think you have been unfairly dismissed. They are an English company so you have to read up on the UK employment laws.
Ideally you want to 'resolve the problem with your employer'. So id say you're are going about it the right way, tell him you'll stay there until he offers you the money owed, or a compromise that you're all willing to accept.
If that doesn't work I guess eventually the gendarme will order you out and you'll have to go back to England and make a claim to an Employment Tribunal for unfair dismissal. You could potentially win a big compensation payout.
Get your parents involved if you havent already, unfortunately if he won't make a settlement just to get you out of his chalet then it'll have to go to the courts back in England.