The Employment Court has ordered that the Director of a company will become personally liable to pay compensation to employees if the company is unable to.

The company was found guilty of breaching minimum wage and holiday entitlements of workers and ordered to pay $230,350 in compensation to the employees.

After the order was made, the company was placed into voluntary administration, because it could not pay its debts.

The Labour Inspector that prosecuted the company applied to the Court to make the Director responsible to pay the compensation.

The Court held that the Director was personally involved in the breaches of minimum employment rights, and so could become responsible for the compensation.

The Court ordered that if the Company not could pay the ordered compensation after all its assets were sold, that the Director would be personally liable for any outstanding amount.

If the company does not have any assets at all, the Director will have to pay the entire compensation order, totaling $230,350.

Where businesses are unable to pay compensation that has been awarded in the Court or Employment Relations Authority, it may be possible recover to money from people involved in the breach.

If you have concerns that you have not been paid your entitlements it pays to speak with a professional experienced in the area.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-priced Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.


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