The applicant seeks unpaid monies allegedly owing from her employment as a bookkeeper with the respondent. Additionally, she seeks penalties.
The applicant had been a long-term employee for a company trading as Specialist Doors and Windows Etc (the Business).
On 14 February 2025, the respondent purchased the Business. The applicant continued working for the Business but resigned effective 25 March 2025.
The applicant's claim is for her final wages of $443.08, the remaining balance of her annual leave of $424.49 and remaining long service leave of $987.92, and superannuation of $775.22. The total is $2,630.71.
For its part, the respondent challenges the hourly rate for wages (being the rate at which the applicant was paid prior to the transfer of the Business) and says the balance of the annual and long service leave was a liability of the previous owner of the Business.
The parties have agreed that I should determine the matter on the basis of the papers submitted in support of their respective cases.
On that basis, I find as follows.
The applicant's employment was transmitted to the respondent. Hence until otherwise expressly determined, the existing hourly rate of pay continued.
Further, the general rule is that where there is a transmission of a business and an employee's employment continues, there is a recognition of prior service and the new employer assumes liability for accrued leave entitlements.
In this case, that general rule is confirmed in the sale of business agreement between the respondent and the prior owner.
Special Condition Schedule E Clause 2 provides that, unless agreed in writing otherwise, the respondent will employ the transferring employees, assume liability for their entitlements and recognise continuity of service.
No such written agreement otherwise has been provided to me.
Accordingly, I am satisfied and so find that the respondent is liable to the applicant for any amounts still outstanding from her total claims of $2,630.71.
Additionally, the applicant is entitled to interest.
The applicant is to confirm the balance outstanding to enable final orders and the calculation of interest to be made.
The pecuniary penalties claim is brought against the respondent and its director, Mr Ahmad Bahrami.
The parties are to file and serve submissions on liability for and quantum of any such penalties within 14 days.
[2]
[1] Business Sale Contract of Specialist Doors and Windows Etc.