My family recently took over a hotel business in Qld last year. All employees were terminated on the settlement date and all entitlements were paid. No disputes until recently one casual staff claimed that he's entitled to LSL. He said even though he was employed by different employers (4 different owners in the 16 years he's been here), it's still the same hotel and it counts as 'continuous service' for the purpose of LSL. I have checked business.gov.au and indeed he's correct.
Based on a rough calculation, his LSL is about $12,000.
My question is whether I can challenge the previous owner to pay a portion of this $12,000 as it clearly stated in the business contract that 'The Seller will be responsible and indemnified the Buyer against all claims whatsoever in relation to the payment of its employees' salaries, leave entitlements and taxes up to the settlement date'.
I was aware of LSL but didn't realise the entitlement is still accumulated when a business changes hands. I thought the criteria was 'continuous service with the SAME employer' i.e. SAME ABN not same business.
We feel it's not fair if one day we have to pay this $12,000 as he's been with us for less than 10 months. We should not be responsible for the past 16 years.