Escaping a fixed employment contract

A friend of mine sold his company to a UK based company last year. As part of the sale he was given a fixed 2 year employment contract and has moved from a owner director to an employee director, in recent months the (irish) company has had some major cash flow issues and been unable to pay him his full monthly salary.

The UK company are unwilling to invest in the company and expect him to live off the cash he received for the sale.

I was telling him that I feel that because they havent paid him properly for a few months that this is a breach of his contract and that if he wanted the leave he could, he feels that as the contract is fixed for two years he cant, who is in the right?

I was on a fixed term 3 year contract which had a 4 weeks notice period. I gave 4 weeks notice and walked.

What are the notice period terms of your friends contract?

He's not a footballer (actually even that is a bit grey). He can pack it in but I would also think he is entitled to get paid what he is owed.

did they pay the full buyout price on acquiring the company or are they paying in tranches?

Surely his solicitor can advise?

There are two sides to a contract. If one party breaks a condition, why should the other party feel compelled to fulfill his conditions.

ClubMan said:

Surely his solicitor can advise?

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Im sure he'll ask, just came up in converastion last night

wiggzie said:

did they pay the full buyout price on acquiring the company or are they paying in tranches?

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they paid the full buyout price

ronan_d_john said:

I was on a fixed term 3 year contract which had a 4 weeks notice period. I gave 4 weeks notice and walked.

What are the notice period terms of your friends contract?

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2 years fixed with 4 weeks notice

contemporary said:

2 years fixed with 4 weeks notice

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Then assuming he's got his full asking price for the business, and no longer has to keep his new employers sweet, then he can give his 4 weeks notice, and walk.

I wouldn't know where he'd stand though with unpaid wages.

ronan_d_john said:

Then assuming he's got his full asking price for the business, and no longer has to keep his new employers sweet, then he can give his 4 weeks notice, and walk.

I wouldn't know where he'd stand though with unpaid wages.

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He's about 15 months into the 2 year fixed contract though

contemporary said:

He's about 15 months into the 2 year fixed contract though

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Doesn't matter. Contract states 4 weeks notice, then that's it. If the situations were reversed, his employers wouldn't be worried about how long is left on the contract if they needed to get rid.