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Hi, I was made redundant on 21 Dec and was expecting the final payout to be provided in the next pay run a fortnight later. The company then went into Voluntary Administration on 24 Dec and all remaining employees were sent a termination letter on that very day.

My question here is, do I stand in the same priority line as the terminated employees when the Administrator disburses any remaining funds? Am I one step down the line because the Administrator is not responsible for me? Or is this something I CAN take up with Fairwork and claim my rights?

10 months ago

Responses

Hi Charissa,
I’m not sure of the legal side. In Victoria, there is a fund that can pay out employee entitlements that are lost when a company folds. I would check if there is a similar fund in QLD and apply for your money through that.
As for where you stand as a “creditor” I don’t know the answer but I’m sure one of the gurus on here will be able to.
Best of luck
Scott

10 months ago

Thank you very much for your response Scott. At this stage the company hasn't completely folded yet as it's still under voluntary administration. If it does get liquidated I should be able to claim through a similar fund in QLD but we're not at that stage yet. Just unsure of what or where my status is compared to terminated employees that the Administrator is managing.

9 months ago

Hi Charissa

You should check out the Fair Entitlements Guarantee. It's a federal govt scheme designed to pay out the employee entitlements of liquidated companies (so operates in all states). In your case you might be able to get back your redundancy payout and payment in lieu of notice, if there is any (but not super).

Being able to make a claim will depend on where the administration goes, but 90% go into liquidation. Contact the administrator and ask about the FEG - they'll know all about it.

https://www.jobs.gov.au/fair-entitlements-guarantee-feg

Good luck

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