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 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.





0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users

 

Exclusive Black Friday Sale!

Get over 40% off selected products, including prams, baby carriers, cloth nappies, sleeping bags and much more! 24 hours only, on May 6 - register now for your special code.

Kelly Clarkson shares first photos of son

Kelly Clarkson has shown off the first photos of her son, Remington Alexander Blackstock.

5 childbirth myths that need to be busted

Birth is an unpredictable, mysterious process that intrigues us all, and there is a lot of misinformation out there.

Mum of three fatally shot by toddler while driving

A US mother has been shot by her toddler while driving on a highway in Wisconsin.

All you need is one minute to work out

The seven-minute-work out is old news. Research shows the effectiveness of going hell-for-leather for just one minute.

Pregnant women needed to join diabetes study

Pregnant woman in country Australia will help Adelaide researchers figure out why cases of type 1 diabetes have doubled over the past two decades.

Just announced: the Mountain Buggy Unirider

It's the perfect solution to combat those toddler meltdowns when they no longer want to be in a pram but can't walk long distances.

Authorities euthanise dog that fatally bit a newborn baby

A pit bull mix that fatally bit a 3-day-old infant last week has been euthanised, authorities said.

The push for Medicare to fund lactation consultants

While meeting with a lactation consultant can make an enormous difference to a new mother, it's not a service that is available through the public health system.

Why it's perfectly natural to dislike other people's children

Members of a popular forum are fiercely debating whether it is acceptable to dislike a friend's child.

Woman gives birth on plane, names baby after airline

A pregnant woman who unexpectedly gave birth on a flight has named her new baby after the airline, Jetstar.

Heartwarming photos show the joy of adoption after foster care

Children living in foster care can feel like their future is less than clear. But that uncertainty disappears the day they are adopted by their "forever family" 

'Oh my god, it's a baby!' Mum shocked to give birth

When the cramps started to kick in, Klara Dollan just assumed a painful period was starting.

Mum's Facebook plea: 'Help me find my daughter's father'

Kerryn has a unusual present planned for daughter Imi's 13th birthday celebrations - she hopes to be able to be able to give the soon-to-be the teenager her first ever photo of her dad.

Is it possible for your house to be too clean?

Our houses are cleaner than ever before. But how clean is too clean? Could a sterile home be putting your family's health at risk?

Millions of Monkeys: puzzles that grow with your toddler

Here's a puzzle that grows with them; the Puzzle Grow Pack by Millions of Monkeys.

Baby names from Britpop

If you grew up in the 90s you might want to look to the genre of Britpop music for baby name inspiration.

What to eat and drink when you have gastro

When you catch a bug that causes acute infectious gastroenteritis (gastro), your stomach and intestinal tract become inflamed, causing diarrhoea, nausea, vomiting, abdominal cramping and pain. The last thing you probably feel like doing is eating.

'To this day, I owe her my life'

Would I have survived if I hadn't crossed that street?

Why baby Sonny needs you to vaccinate your children

Caitlin is a firm believer in the importance of immunisation to protect children from harmful and deadly diseases.

Five-year-old's photo captures beauty of motherhood

There is no make-up or special outfits and hairdos, but the five-year-old boy who took this picture captured the essence of motherhood as well as any professional photographer.

Babies know whether you are naughty or nice

Studies have shown that infants in the first months of life try to avoid dealing with social wrongdoers - for example, sharing less with them and helping them less - and they expect others to, too.

 
Advertisement
 

Top 5 Articles

Advertisement
 
 
 

What's hot on EB

The babies who are one in 70 million

Bethani Webb was excited to find out she was pregnant, but the first time mum did not realise she was carrying four babies not one.

Exclusive Black Friday Sale!

Get over 40% off selected products, including prams, baby carriers, cloth nappies, sleeping bags and much more! 24 hours only, on May 6 - register now for your special code.

Cafe offers breastfeeding mums a free cup of tea

A Sydney cafe is offering breastfeeding mums free cups of tea in a bid to show support for the right of women to nurse their babies wherever they choose.

To snip or not to snip? When the decision is not clear cut

Jamie Oliver, who considered a vasectomy, is to be a father again. A fellow dad reflects on his own decision 11 years ago

Doctors stunned by rare twins born almost six weeks apart

To everyone's surprise, Kristen Miller "kept doing better each day", keeping her second baby safe.

Baby book ideas for modern parents

Before my son was born I was given a lovely baby book full of blank pages waiting to be filled with weights and heights and first words.

The adorable smile of a baby seeing his mum clearly for the first time

There is no doubt seeing their child smile for the first time is an unforgettable moment for parents everywhere.

Mum tells how toddler 'nearly hung himself' in cot mishap

When Alison Johnson put her 18-month-old Caleb down for a nap, she had no reason to believe her son was in any danger.

Babies are still switched at birth? Yes, it can happen

All my panic and tears aside, my biggest question looking back is about the kind of security measures used in the maternity ward.

Doctors slammed for taking selfie with newborn

Everyone who visits a mum in hospital in the days following childbirth wants to get a photo with the new baby.

ergoPouch Twosie Sleepsuit for winter breastfeeding

Finally, there's a way to keep warm while breastfeeding through winter.

Health check: How long does sex 'normally' last?

What to do with this information? My advice would be to try not to think about it during the throes of passion.

When breastfeeding sucks: fixing common problems

From niplash to tight boobs, biting to milk supply issues, Pinky McKay looks at common breastfeeding issues and how to solve them.

10 things I've learnt in my first six months with twins

Six months on we're all still alive, and the more we get to know each other the easier the days become.

Mum's loving kiss leaves baby fighting for life

Kirsty Carrington thought nothing of giving her newborn son a kiss, little did she know it would leave the baby fighting for life.

When doing chores is your new 'me time'

After children, 'me time' looks a little different.

Get going: 14 travel strollers for families on the move

A stroller can make or break travelling with a baby or toddler. Here are 15 great single travel stroller options.

10 ways toddlers are terrific

It always pays to remind yourself of how terrific toddlers can be - they're little like this for such a short time

 

ENTER NOW

Do your kids love bananas?

This is the comp for you! We have $800 worth of Myer gift cards and boxes of Australian Bananas to be won. Entry is simple: just post a pic of your little one enjoying a banana in the comments of the FB post to enter.

 
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.