STU
NL · Labour Standards Act (minimum employment standards) · Article 37.3 · clause 37.3 · RSNL1990 c L-2

PART V WAGE PROTECTION — Directors' liability for wages

37.3

(1) The directors of an employer are jointly and individually liable for wages as provided in this Part where ,

37.3(a)

the employer is insolvent, the employee has filed a claim for unpaid wages earned during a period not exceeding 2 months with the receiver appointed by a court with respect to the employer or with the employer's trustee in bankruptcy and the claim has not been paid;

37.3(b)

the Director of Labour Standards has issued a determination that the employer is liable for wages, unless the amount set out in the order has been paid or the employer has applied to have it reviewed;

37.3(c)

the Director of Labour Standards has issued a determination that a director is liable for wages, unless the amount set out in the order has been paid or the employer or the director has applied to have it reviewed; or

37.3(d)

the Labour Relations Board has issued, amended or affirmed an order relating to a matter to which this Act applies, the order, as issued, amended or affirmed, requires the employer or the directors to pay wages and the amount set out in the order has not been paid.

37.3(2)

Notwithstanding subsection (1), the employer is primarily responsible for an employee's wages but proceedings against the employer under this Act do not have to be exhausted before proceedings may be commenced to collect wages from directors under this Part.

37.3(3)

The wages that directors are liable for under this Part are wages, not including termination pay as they are provided for under this Act.

37.3(4)

The vacation pay that directors are liable for is the greater of the minimum vacation pay provided in Part I and the amount contractually agreed to by the employer and the employee.

37.3(5)

The amount of holiday pay that directors are liable for is the greater of the amount payable for holidays at the rate as determined under this Act and the regulations and the amount for the holidays at the rate as contractually agreed to by the employer and the employee.

37.3(6)

The overtime wages that directors are liable for are the greater of the amount of overtime pay provided in section 25 and the amount contractually agreed to by the employer and the employee.

37.3(7)

A director of a corporation is not liable for unpaid wages under this section where the director exercised the degree of care, diligence and skill to ensure that wages owing were paid that a reasonably prudent person would have exercised in comparable circumstances.

37.3(8)

A director who has satisfied a claim for wages is entitled to contribution in relation to the wages from other directors who are liable for the claim.

Not legal advice. Verify the cited article against the signed agreement.