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

Discussion in 'Employment Law Forum' started by Sengiy00, 17 October 2014.

  1. Sengiy00

    Sengiy00 Member

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    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?
     
  2. Rod

    Rod Well-Known Member

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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.
     
  3. Sengiy00

    Sengiy00 Member

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    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?
     
  4. Rod

    Rod Well-Known Member

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  5. Sengiy00

    Sengiy00 Member

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    Ok will call the fair work ombudsman monday.
     

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