Employer Selling Business Due to Debt - Will Entitlements be Paid?

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Sengiy00

Well-Known Member
17 October 2014
16
0
71
Hi everyone,
My employer is selling due to poor business performance, debts to suppliers and the ATO and he is at retirement age. I have been with the company for 15 years and have annual leave and long service leave (nearly a year's worth in total). Is it safe to assume I will have to be paid out?
 

Rod

Lawyer
LawTap Verified
27 May 2014
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Not necessarily. Your employee entitlements can be transferred to a buyer. Check with your employer what is happening with your entitlements.
 

Sengiy00

Well-Known Member
17 October 2014
16
0
71
There is only one person who knows. He has told me in confidence so i cant ask the owner. Im told it will be announced in the coming weeks. Im just worried about the new company paying the current owner and then him not paying me. He ows the tax office and suppliers. What if there is not enough cash to pay his employees entitlements? Is there an order in which debts would be paid? If there is enough cash left is he compelled to pay me?
 

Rod

Lawyer
LawTap Verified
27 May 2014
7,197
969
2,894