Thread: When your employer goes belly up, who gets paid first?

In Victoria (I think this is a federal scheme, but not sure) at least, there is a thing called GEARS which is an acronym for something, I just can't remember exactly what it stands for. This scheme (Gov't backed) pays all entitlements to employees for wages and holiday pay. They take a position against the directors of a company in liquidation. How do I know...... don't ask. The payments were made within 6 weeks of the liquidator/receiver being appointed. 100c/$
Hope that makes you feel a little better
Good Luck

Do you have tools or other personal items on site? If so, start taking them home at night. If a receiver takes control then everything on site is under the receivers control. You may have to produce receipts or other documentary evidence to take your stuff away.

I believe they are supposed to pay super every month or 3 months into your super account. My employer pays it fortnightly with wages instead of hoarding it and doing it monthly or quarterly.

As has been suggested, wages, super associated with it and holiday pay or entitlements are low on the list when it comes to liquidation. Now would be a good time to stock up on paperclips. Oh and double check if that industrial photocopier runs on standard household power? When a mining company went bust up north a couple of years ago because the project fell through the workers weren't paid so walked out with everything from flatscreen TVs and washing machines to 20 tonne excavators. It all just disappeared off site. Company had no choice but to pay up because nobody was going to tell them where all the assets were until they were paid. It worked!

The law changed on 31 Dec 2007, to ensure Super gets paid to employees BEFORE any other ordinary creditor.

It also made Directors personally responsible in the event of collapse/liquidation from 1 July this year.
I've helped 3 mates with this already this year. A company not paying Super (particularly in construction industry) is usually the first sign of cash flow problems, and possible collapse.

Steps to take:
1. Talk to your employer about it (unless they're wallys and it won't achieve anyhting.
2. Phone your Super fund, or check out your transactions. If they are longer than 3 months behind in paying Super, they are in breach.
3. Get the Super Fund onto them - they will talk to the employer and if not resolved in 14 days - send a letter of demand from their solicitors and then go after them.
4. Advise the ATO, (link provided before by lewy)

In terms of wages, holiday pay, redunancy trust etc.
Get onto the Fair Work Ombudman
Home - Fair Work Ombudsman
Don't wait, get onto this now, it is far quicker and easier for the ATO and the Obudsman when a company is still operating.

GEERS is the General Employee Entitlements and Redundancy Scheme. This is used when a company or employer has gone bankrupt, into liquidation etc. Hopefully you'll be sorted and won't need to use them.

General Employee Entitlements and Redundancy Scheme - Overview

Good Luck with it!!

GEERS was introduced by the last Howard Government with full support of the opposition. The Labor Government continues support of the scheme and has introduced some improvements.

decades ago the company she worked for went bankrupt and she lost thousands.
Some working at that company knew they were goingunde and quit, meaning they got paid out. and then worked for the company as casuals, getting paid daily. But my wife did not quit so lost thousands.

First cab off the rank is the Liquidator, then anyone with a Deed of Charge over the Assets, then all other creditors including the ATO, so don't hold your breath waiting for wages or benefits, Regards Frank.