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WA Workers Compensation Liability with Sale of Company?

Discussion in 'Employment Law Forum' started by Suzy823, 12 September 2014.

  1. Suzy823

    Suzy823 Active Member

    20 August 2014
    Likes Received:
    Hi there

    I am curious to know where legal liability lies when a company with an existing Workers Compensation claim is to be sold or wound up? I mention wound up as there is a possibility the new owners will have their own company name and take the business name only and shelve the existing company.
    Many thanks in advance :)
  2. Rod

    Rod Well-Known Member

    27 May 2014
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    If the new owners are only buying the business and not the company, liability stays with you. I'd also expect a sale agreement would have a clause saying the new owners are not liable for anything done by the business prior to them owning the business. Generally liability only gets transferred when the legal entity is bought/transferred.
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