On the liquidation or bankruptcy of an employer, the employees have statutory priority for payment of outstanding entitlements such as wages, superannuation, accrued annual leave and long service leave. The employees may also be entitled to redundancy pay.
Where the business does not have enough funds to pay employees’ outstanding termination entitlements (including redundancy payments), employees may be entitled to claim these entitlements through the federal government’s Fair Entitlements Guarantee and the General Employee Entitlements and Redundancy Scheme.
This document has been authored for LexisNexis by Brooke Pendlebury, Principal, Pendlebury Workplace Law, Sydney; and Elise Margow, Principal, Legally Speaking.
This document is prepared with the assistance of Specialist Editor Justine Turnbull, Partner, Seyfarth Shaw Australia.