The position regarding employees is, according to ASIC, as follows:
Quote:Employees have the right, if there are funds left over after payment of the fees and expenses of the liquidator, to be paid their outstanding entitlements in priority to other unsecured creditors. Priority employee entitlements are grouped into classes and paid in the following order:
1. outstanding wages and superannuation
2. outstanding leave of absence (including annual leave and sick leave, where applicable, and long service leave), and
3. retrenchment pay.
Each class is paid in full before the next class is paid. If there are insufficient funds to pay a class in full, the available funds are paid on a pro rata basis (and the next class or classes will be paid nothing).
The priority claims of directors and their spouses or relatives for the period they are a director, spouse or relative of a director are limited to a maximum of $2000 for outstanding wages and superannuation, and $1500 for outstanding leave entitlements. Directors and their spouses or relatives are not entitled to any priority retrenchment pay for the period they are a director, spouse or relative of a director.
Employees may also be entitled to make a claim against the General Employee Entitlements and Redundancy Scheme
But if the drivers are contracted to the company, the news is not so good:
Quote:Contractors are not employees. They are ordinary unsecured creditors of the company.
http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/Liquidation_guide_for_em...I seem to recall hearing that, until Whitlam changed the rules, the Tax Office used to rank above all creditors and would get paid in full before there was any distribution of funds to other creditors, including employees. Anyone here know the details?
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