Jump to content

Company in Voluntary Admin
what happen with husbands entitlements?

  • Please log in to reply
6 replies to this topic

#1 undermyfeet

Posted 30 April 2012 - 06:18 PM


Just wondering if someone can give me an overview.
The company that my husband works for has gone into Voluntary Administration, apparently there is a letter in the mail telling DH what is going on but it is coming from the other side of the country so not expecting it until next week.
They said that pay is 1 week paid, 1 week in advance and so pay is all paid to the end of the month ie today. What we are wondering about is what happens to his leave pay, superannuation, and will he be paid a redundancy or not. He has also been there for just over 7 years so is he entitled to any long service?
We are also wondering how long until they let him know that his is no longer employed  because if he isn't going to get any more pay he needs to get another job asap so we can pay the mortagage etc.

Thanks for any help. I tried to look on ASIC but didnt really understand it.

#2 blue86

Posted 30 April 2012 - 06:29 PM

Having just been through this myself, I hope this helps

All of his entitlements (incl. LSL which will be pro-ratad) have been frozen as they are liabilities of the company pre-administration.

Going forward the administrators are liable and have to guarantee any money owed incurred by them, so wages, leave accrued, and any creditors invoices.

Re ongoing employment - have they advised what the goal of the administration is (ours was due to a tax office court case and garnish of income)? Are they hoping to trade out, or liquidate, or sell?

Technically, they do not have to pay out any outstanding entitlements until they liquidate the company, at which time you husband will be placed on the list of creditors after secured debts but before regular suppliers - if there is no money to pay out he can apply through GEERS to get his money. ETA they can CHOOSE to pay this out if they make staff redundant during the administration period (our company have said they will, but I finished work in Feb and am still waiting) but don't HAVE to pay more than any unpaid wages.

Have a look at the Fair work website, or give them a call, there is heaps of info there.

Edited by blue86, 30 April 2012 - 06:30 PM.

#3 Pearson

Posted 30 April 2012 - 06:47 PM

Try this website for some info - get your husband to call his super company and make sure his super has been paid - this is a major thing that they tend not to pay if they are in money troubles - some companies are ok, but some can be less than scrupulous.
I would ask for a copy of this letter to be emailed to you, especially if it will be delayed by postal due to location.

Edited by Willow Angel, 30 April 2012 - 06:49 PM.

#4 mm1981

Posted 30 April 2012 - 07:04 PM

The company I work for went into liquidation last year.
To explain the processes, voluntary administration is put in place by the directors.  An administrator is appointed and the company will be investigated.  The administrator will determine if the company should continue trading and be returned to the directors, or if it should be put into liquidation.
If the company is put into liquidation (liquidation is basically the winding up and selling off all assets of the company) your husband will most likely be terminated.  If he is in NSW, he should be eligible for the following (based on 7 years service):*4 weeks notice period or payment in lieu of notice (I think it is 5 if he is over 45?)*minimum 6 weeks redundancy pay under National Employment Standards) although if he is employed und an award this could be about 11 weeks*about six weeks long service leave*all unused annual leaveUsed sick leave and that sort of entitlements are generally not paid out.
So he should get a minimum of 16 weeks pay plus any unused annual leave. Redundnacy pay is not taxed and all other pay is taxed at a maximum of 31.5% (I think). So redundancy, as long as you find another job within a few months can be a good thing financially.
Now actually getting this money.....if the company has the money, it will be payed to him when he is terminated.  If the company has no money, he will need to apply to GEERs which is a government scheme that covers employee entitlements.  This scheme will pay out these entitlements, although the process can take longer than 18 weeks. My company was put into liquidation in December last year and I am still waiting.
Bear in mind, you can't apply to GEERs until the company is in liquidation.  
But if they are in voluntary administration, the company may contiue and he may keep his job.

#5 undermyfeet

Posted 30 April 2012 - 07:36 PM

From what we can gather the Directors are trying to convince the admin that the company is ok and they can keep going (though if that was the case they wouldnt be where they are now).
We were under the impression that the banks always get their money first followed by the employees and then the creditors. (to put it simply)
Then he thought that because of the admin that they didnt have any obligation to pay out redundancies.
Thanks Willow angel - great suggestion re email. hadn't thought about it.
Thanks for your replies.

#6 hawkchick

Posted 02 May 2012 - 12:42 PM

One of the companies I work for has just gone into voluntary administration so I do feel your pain.

When my husband's company went into liquidation 2 years ago, the GEERS scheme paid all of his unpaid annual leave, redundancy entitlement and long service leave BUT it did not cover any superannuation (at that time anyway) and the company had not paid his super for 6 months and we hadn't bothered checking), so he missed out on this.

I think blue86 answered your queries really well, but yes, usually there is a hierarchy of people who get paid. The administrators pay employees and themselves before paying any unsecured creditors.

#7 PrincessPeach

Posted 02 May 2012 - 12:52 PM

PP have explained everything really well. However his superannuation & PAYGW should be paid as normal.

Creditor priority is actually the employees, ATO & the administrators as number 1, then the secured creditors & then any unsecured creditors.

There had been proposed changes to the legislation which will make directors personally liable for the payment of employees superannuation & PAYGW - but at this point in time i can't find if they went through.

2 user(s) are reading this topic

0 members, 2 guests, 0 anonymous users


Newborn baby found in a nativity scene

Police are trying to trace a woman who abandoned a baby boy in the manger of a church nativity scene.

Life would be harder without my kids

The Humans of New York Facebook page is well known for sharing touching, real stories from one of the world's biggest cities – and it's just hit the heart of parents everywhere.

Mum dresses as Wonder Woman for last day of chemo

A Brisbane mum dressed up as a superhero to celebrate the end of her chemotherapy and created a moment her family will remember forever.

How a raisin can predict a toddler's IQ

All you need to assess a child's future intelligence is a plastic cup and a raisin, according to new research.

Former Hi-5 member's cannabis hope

Former Hi-5 star Tim Harding hopes a cannabis-derived drug will help control his daughter's epilepsy, which sees the four-year-old suffering between 50 and 100 seizures a day.

The top 5 reasons your toddler throws a tantrum

Whilst to the outside world little people may appear to have it easy, it's actually not always the case – just ask any toddler who's had their toast cut up the wrong way.

Glenn McGrath thought he'd lost his wife and baby

Australian cricket ledged Glen McGrath has spoken about the moment he thought he might lose his wife, Sara and their baby daughter, Madison.


Inside my Centrelink nightmare

Mother Bec Smith has been trying for months to access Centrelink payments. A "serious error" is preventing her.

Warnings over push for hourly childcare billing

Australia's peak childcare body has called for caution around the Turnbull government's push for childcare centres to charge parents by the hour, not by the day.

Cate Blanchett thought about adopting for years

Cate Blanchett says her recent adoption of a baby girl had nothing to do with wanting a daughter after having three sons.

Kate Walsh: 'I can't have kids'

Grey's Anatomy star Kate Walsh has revealed she is unable to have children because she has experienced early menopause.

The parasite that could boost fertility

The Tsimane women of Bolivia are often revered as among the most fertile in the world - on average having 10 children in their lifetimes -- but some are even more fertile than others.

Family may sue cousin over genetics

A Melbourne couple is suing the Royal Children's Hospital for failing to diagnose a genetic disorder in their first child - an error they allege caused them to have another child with severe disabilities.

Strange things mums have done in labour

While most women in labour focus on the upcoming birth of their baby, some women do more interesting things.

Michael Clarke reveals baby's name

When Michael Clarke said he was wrapped around the finger of his little princess, he wasn't joking.

The logistics of breastfeeding twins

Our life is more or less divided into neat four hour parcels of time and it's hard to get much of anything done in the time between feeds.

How to stop people ruining Christmas

We can make a conscious effort about how we react to those curly Christmas day scenarios that can send us up the wall, or should we say chimney.

Lots of formula offers for desperate mum

The mum who was down to her last three tins of baby formula said she had received hundreds of calls and offers to send her formula.

Surviving breast cancer while pregnant

It was last thing Rebecca O'Donnell expected at 30 weeks' pregnant. One morning, while putting on her bra, she felt a pea-sized lump in her right breast.

Cot sheet brands for the nursery

With so many awesome cot sheet options these days, we thought we'd put together a list of go-to brands for you to seek out for your baby's bed.


What's hot on EB

How I survived breast cancer while pregnant

It was last thing Rebecca O'Donnell expected at 30 weeks' pregnant. One morning, while putting on her bra, she felt a pea-sized lump in her right breast.

Grieving father's letter to Bataclan terrorists: "...this little boy will threaten you by being happy and free"

A grieving father whose wife was killed in the attacks on the Bataclan Theatre last weekend has written an open letter to her killers.

5 challenges of motherhood - and how to see them differently

Despite the smiles, the sloppy kisses and the pure magic children bring to our lives, it's hard to deny that motherhood can be tough.

4 challenges of being a new dad - and how to face them

Becoming a parent is challenging – and that applies to both mums and dads.

My battle against antenatal and postnatal depression

I was five months pregnant when I realised I needed help.

Children swapped at birth will not be returned to biological parents

A boy and girl accidentally swapped on the day they were born will stay with the families who have raised them, a South African court has ruled.

A quarter of men believe they get 'man periods'

A British study has revealed one in four men believe they have a monthly cycle.

Baby deposit

How much do you need to save for a 'baby deposit'?

It's fairly straightforward to calculate a house deposit, but how much money do you need to save up for a baby?

Dad's beautiful note to his wife, a nurse

To anyone else it might just look like a picture of a mum having a nap with her toddler.

'I was a complete schmuck': Mike Baird opens up about his wife's postnatal depression

When his wife Kerryn was not well following the birth of their daughter, NSW Premier Mike Baird buried himself in his work.

Mum's desperate plea as whooping cough alert issued

A desperate mother has shared a heart-breaking video of her baby struggling to cope with a coughing fit caused by pertussis.

Coffee could help you live longer

New US research found people who report drinking three to five cups of coffee a day are less likely to die prematurely from heart disease, suicide, diabetes or Parkinson's disease.

The joy and dread of playdates

To live vicariously through your child is to rediscover anxieties you thought dead and buried.

Sick baby could die without scarce special formula, mum says

Lizzie Cann is down to her last three tins of a special formula in short supply.

Adorable toddler's strop foiled by squeaky shoes

We're probably all familiar with the pouty bottom lip and tightly crossed arms of a tot mid-strop.

More sex during World Cup created more baby boys

More sex during South Africa's World Cup meant a disproportionately high number of boys were born nine months later, a new study has found.

Win one of two ABC Shop prize packs in time for Christmas

What a boon it would be to have your toddler's Christmas gifts covered this year. We have two awesome ABC Shop prize packs to give away to two lucky winners.

Do fitness challenges really work?

Fitness challenges aren't new. There's Michelle Bridges 12WBT and a bunch of other programs if you really want to lose weight.

What are pregnant women Googling?

Pregnancy is a huge change for any woman, so it's natural we'll have questions - and turn to Google to ask them.



Can't decide?

Check out the Essential Baby Names section for some inspiration

Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.