Employees of insolvent companies

We can assist employees of insolvent companies in a number of ways.   Perhaps most importantly, we can review your claim in an insolvent administration to confirm it is not understated – that is, you are not deprived of your entitlements through a miscalculation by the appointed liquidator.

In some cases, employment contracts are complex, and may require legal analysis.  We will refer you to a skilled employment lawyer if necessary.

Secondly, we can assist with the calculation and lodgement of claims to GEERS, the Federal Government’s General Employee Entitlement and Redundancy Scheme.  This scheme acts as a safety net for the entitlements (excluding superannuation) of employees whose employer goes into liquidation.

In some cases the processing of GEERS claims does not receive priority, due to other matters requiring attention.   We can liaise with the liquidator of your former employer, and assist him or her to expedite completion and submission of all GEERS claims, to ensure funds are in the hands of employees as quickly as possible.

Where GEERS matters are processed directly by Mayfields (where we are the liquidator), such matters receive high priority as we understand the urgency of getting funds into the hands of former employees quickly, to avoid hardship.

We are well known by and have a good working relationship with the Department of Employment and Workplace Relations, which administers GEERS.

On occasion, claims to GEERS are rejected by the Government, for a number of reasons.   However, there is an appeals process.  If we believe the initial decision to be incorrect,  we can assist you with an appeal of the rejection, to maximise the chance of your receiving benefits from the scheme.

We can also represent you at meetings of the creditors of your former employer, vote on your behalf, and explain any aspect of the meeting, or any proposal put forward by the administrator.  If appropriate we may, on your instructions, challenge a proposal which does not appear to be in your best interests.   Please contact us for further information.

Unions

Unions exist to protect their members' interests.  Timely payment of entitlements is a key concern.  These issues come to the fore in a business insolvency.   We can be of value to any Union which may have concerns as to the capacity of an employer to meet its employee entitlement obligations, in the event of insolvency.

We are available to be retained by Unions to investigate all matters concerning an employer's compliance with its superannuation obligations, as well as its capacity to fully fund its annual leave, long service leave and redundancy pay obligations.

For further information, please contact us.