In brief - Employees made redundant by insolvency event
entitled to generous payout
Changes to the General Employment Entitlements and Redundancy
Scheme (GEERS) mean that employees are probably better off being
made redundant by an insolvency event rather than as a result of a
normal workplace restructure.
Act puts existing GEERS scheme into legislative
form
The Senate recently passed the Fair
Entitlements Guarantee Act (26 November 2012), which
confirms the rights of employees to recover, through the
Commonwealth, their monetary statutory entitlements in the event of
an act of insolvency which renders an employer unable to pay
them.
In essence, the Act puts into legislative form the scheme that
was established by the Howard government in 2000, the
General Employment Entitlements and Redundancy Scheme (GEERS).
The Gillard government promised to improve GEERS during the 2010
election since it was an administrative scheme and liable to
government dismantling.
