[Skip to Content]

Can company directors be personally liable for breaches of an employment contract?

Directors are not generally liable for a breach of contract where they are acting bona fides vis a vis the company.

If however the breach relates to a statutory failure to comply with their duties to the company, directors can be held liable.

In the recent case of  Antuzis v DJ Houghton the company's directors were held personally liable where employees were exploited by working extremely long hours, being paid less than the statutory minimum and frequently not being paid the sums due to them, with no attempt to pay them holiday pay or overtime.

They were found not be to acting in a bona fides way vis a vis the company because they did not honestly believe that they were paying the minimum wage or fulfilling their other legal obligations. They were therefore held personally liable for the breaches of contract that they had induced. 

It's not always possible for directors to hide behind the corporate veil.


Leave a Comment

Employment Law Updates

Signup Now