Govt doubles redundancy payments for abandoned  		workers

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Govt doubles redundancy payments for abandoned workers

The Federal Government’s scheme which provides redundancy benefits for workers whose companies have gone into liquidation has had its maximum benefits doubled from eight to 16 weeks pay.

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The Federal Government’s scheme which provides redundancy benefits for workers whose companies have gone into liquidation has had its maximum benefits doubled from eight to 16 weeks pay.

The Minister for Employment and Workplace Relations, Kevin Andrews, today said the General Employee Entitlements and Redundancy Scheme (GEERS) had been changed to brings it in to line with the community standard for redundancy provisions now in awards and agreements.

Andrews said that under GEERS, if a company goes into liquidation, the Australian Government provides swift financial assistance to support eligible employees who remain out of pocket due to their employer’s inability to provide them with their entitlements.

Limits

He said that subject to eligibility and assistance limits outlined in the GEERS Operational Arrangements, claimants will now be entitled to:

  • Unpaid/underpaid wages;
  • Unpaid annual leave;
  • Unpaid long service leave;
  • Unpaid pay in lieu of notice; and
  • Unpaid redundancy pay up to a maximum of 16 weeks.

History

Andrews said that since 2000 the Australian Government has provided $690m in support for over 59,000 employees whose entitlements could not be met by their employer.

He said it is disappointing that the States refused to jointly fund GEERS, ‘despite its overwhelming benefit to the Australian community’.

Related

Redundancy entitlements - when the company liquidates

 

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