Will the employees be paid?
The Commonwealth Government provides the General Employee Entitlements Redundancy Scheme (GEERS).
The GEERS scheme in most cases will pay out specific employee entitlements if employees are made redundant as a result of a company being placed into liquidation or voluntary administration.
GEERS will pay out claims (limits apply) for the following entitlements:
- Unpaid wages
- Unpaid annul leave
- Redundancy
GEERS does not pay out unpaid superannuation and employees should be aware that the scheme will not pay out their entitlements if they resign after a liquidator or a voluntary administrator has been appointed. GEERS will only respond to claims if their employment is terminated by the liquidator or a voluntary administrator.
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