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

Hi,

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

Hi,
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 Blish

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

 

Show us your DUPLO creations to win!

We love to see the cool creations kids build when they play with LEGO DUPLO. Enter and share a picture of your childs creation for a chance to WIN 1 of 10 LEGO DUPLO prize packs worth over $100 each.

Jammy, Hula Hoop, Rage: Reddit reveals most unusual baby names

A recent Reddit thread has revealed some of the more creative names in the world.

Woman awakens from coma, learns she gave birth

A US woman awakened this week from a four-month-long coma that doctors had feared would be permanent and learned that she had given birth to a baby boy, according to her family.

'Give us a break': mum sent shocking letter over Facebook baby pics

Posting a lot of baby photos doesn't make you a bad person. It may make your Facebook feed a little irritating, but it doesn't make you a bad person.

In defense of the dads who do so much

It's time to shift the focus off what dads aren’t doing and shine it on what they are.

The modern cloth nappies too cute to cover up

If you're only just joining the modern cloth nappy movement, or would like to spruce up your collection, we have to introduce you to Designer Bums.

How breastfeeding can affect your libido

When you’ve just had a baby, having sex isn’t usually top priority. In fact, for a lot of women it rates about as appealing as changing another dirty nappy.

Should pregnant women be allowed to use 'parent and child' car parking spots?

Is it acceptable to use these car parking spots when pregnant? How many of us would admit to doing it?

Healthy baby from sperm taken 48 hours after a man died

Fertility doctors have described their "most extraordinary case" - creating a healthy baby from sperm taken 48 hours after a man had died.

Anti-vaccination mum's seven children contract whooping cough

A Canadian woman who had declined to have her children immunised against pertussis, better known as whooping cough, has changed her position now that all seven of her children have come down with the disease.

How pregnancy probiotics can help you and your baby

New research suggests that taking specific pregnancy probiotics could be the answer to a range of common pregnancy side effects.

Childcare is a big problem, but there's more to it

Let’s keep talking about these issues and not allow them to be put into a neat little box that’s labelled ‘Fix childcare and everything is solved’.

Pink's awesome response to body-shaming trolls

When trolls felt the need to comment on 35-year-old singer-songwriter Pink's weight, her answer was an awesome ode to body love.

Fertility clinic offers egg donors $5000

A national chain of fertility clinics is offering egg donors a $5000 payment to cover their expenses, a first for Australia which is raising concerns the money could act as an inducement.

Baby boy abandoned in India amid fresh surrogacy concerns

Australian officials could do nothing to stop an Australian couple from abandoning their baby son, born through surrogacy in India, after they decided they did not want to bring him to Australia.

Herd immunity and community responsibility: how free-riders can make kids suffer

Individual choice works for haircuts and handbags, but not for preventing infectious diseases that kill kids.

Photographer captures 'unexpected beauty' of birth

If there is one thing Leilani Rogers knows about childbirth, it is that no two deliveries are ever the same.

Expectations vs the reality of making a toddler's clothes

Note to self: less sewing, more life. Not the party dress, but the party. The toddler, as usual, has it all figured out.

Mum meets 'dead' daughter 49 years after birth

In 1965, Zella Jackson-Price was told her premature baby girl had died shortly after birth.

Sign up to our 30 days of #PlayIQ challenge

Sign up to receive 30 amazing tips and ideas for play with baby during the month of April and submit a picture or tip on our social wall for a chance to win an amazing Fisher-Price prize pack.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

Sign up to our 30 days of #PlayIQ challenge

Sign up to receive 30 amazing tips and ideas for play with baby during the month of April and submit a picture or tip on our social wall for a chance to win an amazing Fisher-Price prize pack.

Tips for flying with a baby

Travelling with kids requires a whole other set of skills - ones that I have learned through (sometimes unfortunate) trial and error.

How to stay calm in an emergency

I’m not expecting you to be as calm as you might be right now. What I mean is that if your panic levels are through the roof during a stressful situation, let’s bring them down to just under the ceiling.

Toddler gets 'drunk' after cranberry juice mix-up

A toddler was taken to hospital after a waitress served her sangria instead of cranberry juice at a US restaurant.

Show us your toddlers LEGO DUPLO creations

We love to see the cool creations kids build when they play with LEGO DUPLO. Enter and share a picture of your childs creation for a chance to WIN 1 of 10 LEGO DUPLO prize packs worth over $100 each.

We need to stop using this word when we talk about childbirth

Is it shaming to point out that women are often being let down in birth?

The certificate helping parents deal with pregnancy loss

For some people, this certificate will offer a sense of validation that their child was acknowledged as being here and now gone, and will help them with life post-loss.

The phenomenon of phantom pregnancy kicks

'Phantom pregnancy kicks’ are encountered by many mums months - or even years - after their pregnancy is over.

The health insurance advice you can't afford to ignore

There's one simple switch that could save you hundreds of dollars a year in private health insurance.

4D scans show how smoking affects babies still in the womb

The harmful effects of smoking during pregnancy on unborn babies may be seen in tiny movements in their faces using 4D ultrasound scans, research has found.

The most dangerous toddler food trends

Pete Evans' paleo cookbook for kids caused a storm, but there are plenty of other unsafe food trends for babies and toddlers.

Infection killed new mum of twins

Modern medicine could not save 19-year-old Sophie Burgess who died 48 hours after giving birth to twins in the UK.

How to babyproof your job interview

Once upon a time, I was a fan of job interviews. That all changed after I'd switched careers, had a baby and decided to spend the first year at home with her.

Grieving families give warnings after toddler deaths

Two Queensland families are grieving the loss of their toddler sons after the boys drowned in separate incidents last week.

Man faces jail after giving woman abortion pill smoothie

A Norwegian man is facing jail after putting abortion pills in his ex-girlfriend's smoothie, causing her to have a miscarriage.

'He's a blessing': family of baby born without eyes

Jordy Jackson was born without eyes. He has anophthalmia, which affects one in every 100,000 babies born.

Super fit model Sarah Stage defends her pregnancy body

Model Sarah Stage has defended her pregnancy body after critics claimed her slim figure at eight-and-a-half months pregnant wasn't "normal".

Why I post breastfeeding photos online

I love to take pictures of my children. In some of the pictures, my younger son is nursing.

The day I broke my baby

There are things I wish I didn't know. I wish I didn't know that companies make tiny braces, small enough to hold necks no bigger than a wrist.

Geeky baby gear

If your family is more into Star Wars, gaming and the periodic table than most, you might want to check out these geek-chic baby items.

Grandbabies: the babies born looking old

Not a day under 65 and a lifetime of struggle! That's the look of these newborns, who look adorably older than their real age. Social networking site Reddit recently featured user submissions of adorable grandbabies, here are our favourites.

53 creative pregnancy announcements

Announcing that you're expecting can be a time to express your creativity, sense of humour and imagination. Check out how other parents and parents-to-be have broken the news to friends and family.

IKEA hacks for the nursery and kids' rooms

Are you one of those that know the whole IKEA catalogue by heart? Love their stuff but want to personalise it? Here's some inspiration to help you realise the potential of IKEA furniture and fittings.

36 baby names inspired by food and drinks

A French court may have ruled out Nutella as a baby name, but that doesn't have to stop you from taking inspiration from the supermarket (or bottle shop). See what parents in the US have chosen for their delicious little ones.

Clever breastfeeding products

Check out this range of products designed to help make your breastfeeding journey more enjoyable, manageable and convenient.

 

SIGN UP NOW!

Win a year's worth of toys

Receive a daily email from Essential Baby for just the month of April with great play tips and ideas, then submit your baby at play photos to our Playwall, Instagram or Twitter for your chance to win.

 
Advertisement
 
 
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.