QLD Can directors still be held accountable for de-registered companies?

[CuriosCara]

In relation to disputes regarding unpaid wages (wage theft) and the previous employer has closed the business and deregistered the relevant company responsible for paying the wages - can the director of that company/business still be held accountable. How does a victim go about attempting to recover wages owed to them when the business/company no longer exists and the director has relocated (skipped town) ?

 

[Rod]

Read this first: Fair Entitlements Guarantee (FEG).

 

[CuriosCara]

Hi Rod, thanks for your reply. Yes, I have viewed FEG however, one of the eligibility requirements makes reference to the liquidation or bankruptcy of the employer. The company was deregistered and then cancelled by ASIC due to non-compliance (assumably due to the director failing to pay the annual registration fee?) - this wouldn't be considered liquidation or bankruptcy would it? Further, the amount owing is in excess of the 13 week maximum - a total of 33 weeks is owing. Are there no "Corporate Veil Piercing" options possible?

 

[Rod]

Get information from ASIC first about what happened. Do not assume it was a simple deregistration. Also tell them you are owed money, see what they say.

You can effectively pierce the corporate veil for breaches of the Fair Work Act. You should get advice from an employment lawyer.

 

[CuriosCara]

Yes, it was explained to ASIC the issue surrounding the unpaid wages. However they stated they can not assist in the recovery of money/debts owed to former employees nor did they provide further details regarding the de-registration other than saying it was cancelled due to non-compliance and that non-payment could have been the reason for that (I'm not suggesting they wouldn't provide this information, they just didn't and I wasn't aware that they could provide further specifics to the general public). The only possibility they offered was information relating to "reinstatement requests" where outstanding/unresolved matters are present. I don't know if this would be pursuable as even if they did reinstate - which I've been told is a rather complex process - it may not be worth it anyway as that company may not hold any assets etc.

I'd very much like to seek advice from an employment lawyer, however I am unable to afford one due to the financial hardship I have been placed in as a result of having a large portion of my income stolen/unpaid. Thus why I am seeking information from forums such as this site, my only option is to self-represent which is a daunting and cumbersome task as I have no legal training or knowledge. Unfortunately, if you're not in position to be able to pay for advice no-one will assist you no matter how dire your situation may be.

Are you able to offer any suggestions as to where I can find further information regarding what options may be pursuable regarding "piercing the corporate veil for breaches of the Fair Work Act".

Any information would be greatly appreciated.

 

[Rod]

How long ago were you 'dismissed?

 

[CuriosCara]

I wasn't dismissed. The owner/director closed the business without notice towards the end of 2018 and left town.

 

[Rod]

That counts as a dismissal.

You have 3 options:

1. DIY in the Federal Circuit Court of Australia
2. Use a lawyer
3. Forget it and move on with life.

If the owner has assets you may get a good result. If the owner has no assets, then you are wasting time and maybe money chasing after what you are owed.