Non-director personally liable for company wage debt...

The Employment Relations Authority has upheld a claim by a Labour Inspector for wage and holiday pay arrears and made a non-director personally liable to pay those as the company is in liquidation.

The non-director was aware that wages and holiday pay had not been properly paid and was the person responsible for the payment of wages and holiday pay.  As she was a person involved in running the business that made her liable to pay if the company did not.

Her husband was the sole director of the company, but had no day to day involvement and was not involved in the non-payment of wages and holiday pay.

The company and the non-director were ordered to pay $7,600 wage and holiday pay arrears and also the company was also fined $7,000 for the breaches.

Liquidating a company will not save the people responsible for running the company on a day to day basis from personal liability for unpaid wages and other entitlements.

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Alan Knowsley