Personal Property Securities Act: implications for employers

Employers should be aware that authorising employees to enter into terms of trade that contain retention of title or credit terms, or that relate to a lease or consignment of personal property (Supply Contracts), will entitle the supplier of those goods to register a Personal Property Securities Act 2009 (Cth) (PPSA) security interest over the employer company.

How is that possible?

The PPSA is one of the most significant reforms to Australian commercial law in decades. It applies to commercial transactions involving virtually all types of property (except land). As a result, it has a significant impact on numerous commercial relationships, documents and transactions, including employment contracts.