VIC Long Service Leave - Legal Recourse?

[Scorchers1003]

Hi,
I bought a business last year and the previous employer did not disclose any long service leave entitlements to 2 staff members. I am now having to sell the business and am being told to cover the full accrual of entitlement not just for the year I have owned the business.

Do I have any redress against the previous employer as they failed to disclosed this in the sale of contract? As it stand I am the one left out of pocket. This business in Victoria and is the hospitality industry.

 

[Ivy]

Hi there,

Who is telling you to cover the full accrual of entitlement? Has the Fair Work Ombudsman been involved or have you have a court order made against you?

You will need to see a lawyer to get advice on whether you have can/should chase the previous owner for the costs of long service leave entitlements. This is because as far as I can see, your outcome will be very dependent on the particular factual situation including what is in the contract of sale, the conversations and communication you had about the business with the previous owner and any agent, how much you knew (or should have known) about the business before you bought it and so forth.

The fact that the previous owner didn't tell you about or include the long service leave entitlements in the contract of sale is not determinative. A prudent buyer would usually enquire with staff as to how long they had been employed and therefore have notice of any long service leave that is coming up.