Corporate Insolvency and the Protection of Lost Employee Entitlements: Issues in Enforcement
Australian Journal of Labour Law, Vol. 26, No. 1, (2013)
29 Pages Posted: 9 Jul 2013
Date Written: July 8, 2013
This article gives an overview of the enforcement by the Australian Securities and Investments Commission (ASIC) and the Fair Work Ombudsman (FWO) of laws for the protection of the entitlements of employees of insolvent corporate employers. It begins by explaining the types of actions available under the Corporations Act 2001 (Cth), including provisions inserted in 2000 specifically designed to protect employee entitlements in the context of corporate restructuring and insolvency. It looks at ASIC’s response to this legislation and what the Gillard Government proposed as part of its ‘Protecting Workers’ Entitlements’ package, announced prior to the 2010 federal election. The article then considers the actions of the FWO in prosecuting corporate employers and their officers for underpayment and non-payment of entitlements under the Fair Work Act 2009 (Cth), and whether more could be done. It concludes with some thoughts about overcoming the difficulties faced by ASIC and FWO.
Keywords: employee entitlements, corporate law, labour law
JEL Classification: K22, K31
Suggested Citation: Suggested Citation