WA Company Under Liquidation and Resignation - Will I Lose My Employee Benefits?

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Sonel

Member
23 April 2016
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Hello ,

The company I was working was put into Voluntary administration and now the Administrator has decided to go through liquidation. Even after they have decided to liquidate the company, they are not giving me my termination letter so that I don't get a job in a new company to which the liquidator is trying to move all on-going projects. In this situation, if I resign, will I lose any of my employee benefits?
 

Tim W

Lawyer
LawTap Verified
28 April 2014
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Sydney
If it's already in liquidation, then even if you don't resign,
chances are that you won't get anything.

As an employee, you are probably an unsecured creditor.
If so, then you are in a long queue that starts with the ATO,
and then (usually) the employer's finance provider(s)/ bank(s),
then the secured creditors, then the unsecured creditors.

If you are now saying to yourself something like
"...but after all those guys, there probably won't be anything left for me...",
then sadly, you are probably right.

As to getting a new job, when your employer is in liquidation,
then there's nothing much stopping you.
 

Rod

Lawyer
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27 May 2014
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Sonel

Member
23 April 2016
2
0
1
Tim and Rod thanks for your reply.

Since the company is in liquidation doesn't it mean that my employment contract is null and void? The liquidator is not ready to give me my termination letter.

In this situation, I would like to resign and move to another job. According to my employment contract notice period for resignation is one month will it still apply since the company is in liquidation?
 

Tim W

Lawyer
LawTap Verified
28 April 2014
4,228
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Sydney
Just apply for anything you like.
You don't need your current employer's permission to look for another job.
Have a read of this.

You may also find this helpful. There are some useful links in it as well.