Employee entitlements (including wages, superannuation, leave and termination pays, etc.) are afforded as a priority under the Corporations Act and Bankruptcy Act ahead of other claims.
The federal government also has a scheme to protect employee entitlements in the event of a company being placed into liquidation – known as the Fair Entitlements Guarantee Scheme (FEG). This scheme provides a fund to satisfy and pay outstanding wages, leave entitlements and termination pays of employees even if the business cannot afford to pay these debts. Call us to find out more.