Recovery of advance paid to liquidator

In force

For the purposes of section 560 of the Corporations Act 2001, a payment of an advance for a person’s employment by an employer that is made to the liquidator of the employer under section 28 of this Act is to be treated as follows:

(a)

so much of the advance as is for the person’s wages entitlement is taken to be an advance (within the meaning of section 560 of the Corporations Act 2001) of money by the Commonwealth for the purpose of making a payment on account of wages;

(b)

so much of the advance as is for the person’s annual leave entitlement or long service leave entitlement is taken to be an advance (within the meaning of that section) of money by the Commonwealth for the purpose of making a payment in respect of leave of absence;

(c)

so much of the advance as is for the person’s payment in lieu of notice entitlement or redundancy pay entitlement is taken to be an advance (within the meaning of that section) of money by the Commonwealth for the purpose of making a payment in respect of termination of employment.

Note 1:

If, because of the advance, the person receives an amount on account of wages, in respect of leave of absence or in respect of termination, section 560 of the Corporations Act 2001 effectively gives the Commonwealth the same rights in the winding up as the person would have had for that amount if he or she had not received it.

Note 2:

Section 32 explains how to work out what amounts of the advance are for particular entitlements if the amount of the advance has been reduced under section 17 because of the person’s debts to the employer.

This Act’s bill:Explanatory memorandum Second reading speech

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29 Recovery of advance paid to liquidator