Legal Updates

A company manager will not be liable for debts to employees unless committed a personal tort or in exceptional cases

March 23, 2016
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An employee filed a claim against a company for improper dismissal and salary debts and also added as defendants managers of the company arguing that they were aware of the improper procedure.

The Labor Court rejected the claim against the managers and held that a manager of a company will be liable only when the manager committed a personal tort and did not act as an organ of the company or when the manager used the corporate veil in bad faith, such as in the case of incorporating a new but similar company in order to avoid paying debts or in the case of non-transfer to its destinations deductions made from the salary.

 

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