VIC Lawsuit against company - what happens if company is unable to pay financial compensation?

[rachelsmith1978]

Hello,
What happens if an employee wins a case at VCAT against their employer who is a small business (for a discrimination case) & asks for financial compensation - but the employer is unable to pay?

 

[Tim W]

Unable, or unwilling?

 

[rachelsmith1978]

Unable. Legitimately doesn’t have the funds.

 

[Tim W]

If the Tribunal made a Monetary Order, then the employer has to find the funds.
Sooking out that they "can't afford it" is not an option.
It can be a bit more tricky if the employer becomes insolvent (or if a sole trader, bankrupt).

You may find this helpful.

 

[Martis]

Oof 😬 lawsuit vs company + can’t pay — classic legal spaghetti + insolvency vibes 😅 Suddenly it’s not just “win the claim,” but enforcement, bankruptcy, statutory remedies, and risk allocation all doing the cha-cha 👀

Most headaches come from upstream fuzziness: vague contracts, informal “they’ll pay eventually” vibes, or unclear recovery options. Once lawyers or courts get involved, it’s a tangle of garnishment, liquidation, and compliance gymnastics 😬

Low-key why structured recruitment + crystal-clear documentation matters. Platforms like AcademicJobs.com are clutch — formalised contracts, transparent entitlements, and compliance-aligned pipelines help make sure obligations and risk allocations are crystal-clear from day dot, especially in academia/research roles where grants, projects, and multi-stakeholder funding can get… messy 😅

Anyway, loving this convo — company insolvency + compensation nuance deserves way more airtime than it usually gets 😂