My question is regarding the Parent Company that placed the company I worked for into receivership. The Parent Company is a very powerful Private Equity Company. For the 6 months leading up to the Receivership action, the parent company began withholding funds for the purchase of raw materials so we could not complete the work orders pending.. They stopped paying accounts of our creditors. This seemed like a deliberate action knowing that the final outcome would be the closure of the business. Their actions seemed deliberate, and by being placed into receivership with huge debts they would forego the requirement to pay employee entitlements. Because the sale or liquidation of the business would barely cover their debts.With no money left for employee entitlements.
They effectively abrogated their responsibilities knowing that the FEG, (Fair Entitlements Guarantee ) would pay for the majority of entitlements.
What are the chances of employees taking legal action, either individually or as a class action against the Parent Company. What are the chances of success?
Are there Legal firms that would take on such a case? With payment coming from a positive settlement.
I would surmise upwards of 20 employees would be signatories to a class action.
I have been without an income for 31 days now. FEG may not be finalised for at least another two months. Which means I would lose my vehicle and become homeless. I am 55 years of age so there is not much hope of finding employment being a blue collar worker.
Any advise would be most welcome
They effectively abrogated their responsibilities knowing that the FEG, (Fair Entitlements Guarantee ) would pay for the majority of entitlements.
What are the chances of employees taking legal action, either individually or as a class action against the Parent Company. What are the chances of success?
Are there Legal firms that would take on such a case? With payment coming from a positive settlement.
I would surmise upwards of 20 employees would be signatories to a class action.
I have been without an income for 31 days now. FEG may not be finalised for at least another two months. Which means I would lose my vehicle and become homeless. I am 55 years of age so there is not much hope of finding employment being a blue collar worker.
Any advise would be most welcome
