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Employment Law - General Employee Entitlement & Redundancy Scheme (GEERS)

Date: June 05, 2009

Authors: LAC Lawyers

If you have been made redundant or have lost your job because your employer has gone bust and you have not been paid your outstanding wages or entitlements, then you may be eligible for payment under GEERS.

What is GEERS?

The General Employee Entitlement & Redundancy Scheme or “GEERS” as it is commonly known is a government initiative designed to assist employees whose employers have gone bankrupt. The scheme provides for the payment of the employee’s basic entitlements such as unpaid wages, unpaid annual leave, unpaid long service leave, up to 5 weeks unpaid payment in lieu of notice and up to 16 weeks unpaid redundancy entitlement.

How do you know if you are eligible for payment?

In order to be eligible for payment, a claimant must firstly prove that they are/were an employee. Contractors, subcontractors or agents will not be eligible.

The employer must have been subject to one of the following insolvency events:

  1. If the employer is an company, then at the appointment of a provisional liquidator or liquidator appointed under the Corporations Act;
  2. If the employer is not a company, then when the employer is subject to bankruptcy;

How much can you receive?

How much you can receive will depend on your annual wage. If your wage is greater than the Maximum Annual Wage covered by GEERS then the amount of the advance will be calculated as if your wage was equal to the GEERS maximum wage at the date which employment was terminated.

When must a claim be made?

A claim must be made within 12 months after either the termination of the employment or the date of the insolvency event whichever is the later.

If your claim is made more than 12 months after the date of the termination of employment or the date of the insolvency event, the claimant will be ineligible for payment unless there are valid reasons why it was unreasonable for the claimant to claim within the 12 month period.

How can we help?

We can assist you from the preparation of your claim and answering any queries which the Insolvency Practitioner may have through to advising you on the terms and conditions set out in a Deed of Undertaking that you are required to sign. If you are not satisfied with the outcome of your claim, we can assist you with the appeals process from review of the claim decision to appealing the review decision itself.

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