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Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 39132
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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OUR SECOND SON,,,,,HAS HAD TO LIQUIDATE HIS COMPANY AFTER 16

Customer Question

OUR SECOND SON,,,,,HAS HAD TO LIQUIDATE HIS COMPANY AFTER 16 YEARS,

OUR YOUNGEST SON WAS AN EMPLOYEE OF THIS COMPANY, HE WAS IN NO WAY INVOLVED IN ANY OF THE CONCERNS OF RUNNING THIS COMPANY,

HE WAS A FACTORY WORKER, ONLY

NOW, IT SEEMS HE IS NOT INTITLED TO ANY GOVERNMENT. FEG INTITLEMENTS,

HOW IS THIS POSSIBLE, HE WAS ONLY AN EMPLOYEE LIKE ALL THE STAFF,

HE HAS NEVER BEEN PAID LONG SERVICE, AND HAS ACCRUED HOLIDAYS STILL OWING
Submitted: 1 year ago.
Category: Australia Law
Expert:  Leon replied 1 year ago.
Good Afternoon,

Thank you for your question. To Introduce myself I am a sydney based Solicitor and will do my best to provide you with relevant information to assist you.


Unfortunately he's not entitled to any government assistance for the loss of his entitlements because he was related to his employer.

In order for you to be able to obtain a benefits under the GEERS scheme there must be no relationship between the owner of the business and the employee.

Your youngest son it has now become an unsecured creditor of the company and once the liquidator finalises their position if there is any money available, after payment of all debts of the company then your son will receive his entitlements.

Unfortunately there is very little that can be done as this is a condition of the legislation.

The following link confirms that your youngest son is not eligible because he is a relative of a director of the company.

http://foi.deewr.gov.au/system/files/doc/other/geers_eligibility_for_geers_assistance_fact_sheet.pdf

Unfortunately there is very little else I can assist you with.

It is a matter where your youngest son is going to have to wait and see what happens when the liquidator is finished.

Do you know whether there will be any assets left after the liquidation?
Customer: replied 1 year ago.


please note,,,,,,,,,


 


younger son, has been employed with this company for 16 years, not just yesterday,

Expert:  Leon replied 1 year ago.
Good Afternoon

I understand he has been working for them for 16 years but that does not change the fact he is a relative of the director and is not covered by the GEERS program because he is an excluded person.

The period you are with the company does not play a role in this. It is the relationship you have with the owners of the business.

I know it is harsh but that is how the legislation has been drafted and there is very little that can be done about this.

You can contact them directly and they will tell you that once the application is assessed and they see that their is a relationship there, it will be rejected.

There is not much else I can do of you. The debt is one against the company and he has to wait.

He can sue his brother (the director) for any unpaid Superannuation and PAYG as they are personal liabilities of the director but not for Long Service Leave, Unpaid Wages and accrued annual leave.

There is not much more I can assist you with. I have had client sin the same situation and unfortunately, working in the family business has gone against them.

Is there anything else I can assist you with?
Customer: replied 1 year ago.


THAT IS JUST DISGRACEFUL,,,,,,,WOULD LIKE TO KNOW, WHICH GOVT, BROUGHT THAT IN,,,,,


DID THIS RULE EXIST 16 YRS AGO,,,,,,,HOW IS IT, THAT WE DID NOT KNOW THIS,,,,,,,HOW MANY FAMILY EMPLOY THEIR OWN KIN,,,,,,,,,PROBABLY MANY,


DO WE NEED AFFIDAVIDS FROM STAFF, TO PROVE OUR SON WAS JUST AN EMPLOYEE,,,HOW CAN HE SUE HIS OWN BROTHER, FOR GIVING HIM A JOB,,,,, WHAT ABOUT THE IMPACT ON THIS FAMILY, WE NEED TO KNOW, WHAT AVENUES WE HAVE, OR IS THIS DISCRIMINATION,,,,,,,,,SURELY IT MUST BE, WHEN IT CAN BE PROVED, HE WAS ONLY AN EMPLOYEE, THATS WHAT HE WAS,,,,,,,,,,,


THIS IS SO BAD, WHAT A DREADFUL GOVT TO DO THIS TO ITS PEOPLE , WHO HAVE PAID ALL THEIR TAXES ,,,,,,,,,,I THANK YOU FOR YOUR ASSISTANCE, BUT THIS JUST HAS TO BE WRONG,,,,,,,,,,,,,,,


 


 

Expert:  Leon replied 1 year ago.
Good Morning,

This legislation was brought in after the Ansett failure by the Liberal Howard government.

The fact that your youngest son is a relative of the director is the only issue that will be looked at and his claim will fail.

The time that he has worked for the company will not even be considered because he's not an eligible employee.

I'm sorry I cannot give you anything more positive.

The legislation is very clear relatives of a director of a company are not eligible to apply.

You can contact them directly that they will simply confirm what I have told you.

I hope this is of assistance and is there anything else I can assist you with?
Customer: replied 1 year ago.


was the family/employee situation, in place at that time, or has it just recently changed, with this GOVERNMENT,,,,,,,,,,


IS IT COMMON KNOWLEDGE, FOR BUSINESS OWNERS, TO KNOW THIS SO CALLED LAW,,,,,OR DO YOU HAVE TO WAIT FOR SOMETHING HEART BREAKING TO HAPPEN, TO FIND OUT,,,,,,,,WE DO NOT REMEMBER EVER HEARING ANYTHING OF THIS SO CALLED LAW,,,,,,,,,,

Expert:  Leon replied 1 year ago.
Good Morning,

The restrictions have been in place from the inception of the programme the only thing that has happened is that it has been extended to include more industries.

It is the responsibility of the liquidator and the employer to nullify the employees of the rights to apply for this.

As I said after the ANSETT failure where the employees did not have any recourse against the employer and they all lost their benefits, this programme was introduced for future company failures.

It is not something that is publicised, but if a company does go into liquidation the liquidator and the employer notifies employees to contact GEERS and ascertain whether they are eligible to be paid out their entitlements.

But the restriction on related parties has been there from its inception.

Is there anything else I can assist you with?
Customer: replied 1 year ago.


AS YOU CAN IMAGINE , WE ARE ABSOLUTELY SHELL SHOCKED,,,,,,,,YOU SAY, THIS LAW IS NOT WIDELY KNOWN,,,,,WHY IS THAT,

WITH ALL THE COMPANIES GOING DOWN, WHAT IS TO BECOME OF FAMILY EMPLOYEES, AFTER ALL, FAMILY ARE THE ONES YOU TRUST,,,,,,,

 

THIS LAW NEEDS TO BE OUT THERE,,,,,,,,,WHAT A DISGRACE FOR THIS COUNTRY,,,,,,,,

 

SOON THERE WILL BE NO MORE SMALL BUSINESSES,,,,,,,,,WHO IN THERE RIGHT MIND, WOULD EVER CONTEMPLATE OWNING A BUSINESS, IN THIS COUNTRY,,,,,,,,,,

 

YOUR SERVICE HAS BEEN EXCELLENT , AND WE THANK YOU VERY MUCH,,,,,,,,,

 

REGARDS

BARB AND GLENN XXXX

Expert:  Leon replied 1 year ago.
Good Morning,

I can understand your disappointment and I'm happy to have been of assistance even though was to give you bad news.

I hope this is of assistance. If I have missed anything, or you have any further questions please let me know before leaving any feedback.

If I have assisted please do not forget to leave me with positive feedback.

Leon, Solicitor
Category: Australia Law
Satisfied Customers: 39132
Experience: BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
Leon and other Australia Law Specialists are ready to help you
Customer: replied 1 year ago.


SO THERE IS JUST NOTHING WE CAN DO,,,,,,,,NOTHING AT ALL,,,,,


 


THIS HAS TO BE , ONE OF THE WORST LAWS EVER, AND ALL BECAUSE,,,,,FAMILY EMPLOY FAMILY,,,,,,,,,


 


THE IMPACT ON OUR FAMILY , WILL NOW BE DESTROYED,,,,,,,,,,,

Expert:  Leon replied 1 year ago.
Good Afternoon,

I'm sorry to say there is nothing that can be done.

I have had to deal with a similar situation in the past have had to give my clients the same information.

Unfortunately the law and the program as it was enacted by the government does not permit for related parties to be compensated.

I hope this is of assistance. If I have missed anything, or you have any further questions please let me know before leaving any feedback.

If I have assisted please do not forget to leave me with positive feedback.

Customer: replied 1 year ago.


i ask why,,,,,this law is so hidden,,,,,,,,,,,


 


why is it such a secret,,,,,,


 


please answer those questions,,,,,please

Expert:  Leon replied 1 year ago.
Good Morning

I cannot advise on why it is a secret as you put it. It is available online and after the issues with ANSETT where there were no guarantees or government support the law was passed.

It is not hidden from anyone and as I mentioned in my initial posts it is the responsibility of the liquidator and the director of the company to advise its employees of the rights under the programme.

All employers that have financial difficulties are aware of the programme, or they should be aware that as they should be discussing the financial positions with ASIC.

There is no deliberate attempt by governments or authorities to hide this from the public.

It is like many other government handouts unless you make your enquiries you do not know that they are available.

I can't tell you any more than this.

Is there anything else I can assist you with?
Customer: replied 1 year ago.

I HAVE I HOPE THIS LAST QUESTION FOR YOU,,,,,,,,,,,

;;WHY;; IS IT NOT KNOW , ABOUT THIS SUPPOSED LAW,,,,,,,,RE FAMILY MEMBERS NOT INCLUDED FOR BENEFITS,,,,,,,,

WE HAVE SPOKEN TO OTHERS ABOUT THIS,,,,,,,,,,,THEIR RESPONSE IS ONE OF SHOCK,,,,,NO ONE HAS HEARD OF THIS LAW,,,,,,,,,

REGARDS
B

Expert:  Leon replied 1 year ago.
Good Morning,

I completely understand that you are shellshocked but you have to understand there is very little that I can do about changing the law.

As I mentioned earlier it is something that is not common knowledge because most people are not affected by companies going into liquidation.

I only guessing but I suspect the reason why family members, and directors of companies (who are employees) are not eligible because of possible conflict of interest in the running of the business.

There are many businesses where the husband is the director and the wife is an employee go bust. These people are not covered and not paid out by the system.

Again please accept my apologies that I cannot you anything more positive but there is very little like can do.

Is there anything else I can assist you with?
Customer: replied 1 year ago.


interesting, that you say, this law was after ansett,,,,,,


 


but, the liquidator says, its was early this year,,,,,,,,,,,,


 


??????????

Expert:  Leon replied 1 year ago.
Good Morning

The GEERS program was instituted after ANSETT. The restrictions applied form then.

I am not sure what the liquidator is talking about.

I have had clients face the same issue back in 2005 and they could not claim because they were the relatives of the directors and owners of the business.

This is how I knew about the issue when I saw your question.

I cannot comment on what the liquidator is referring to.


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Leon
Leon
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BEc Dip Ed, Dip Law (SAB) MTax (UNSW)