Q: What is GEERS
A: The General Employee Entitlements and Redundancy Scheme (GEERS) assists employees who have lost their jobs when a liquidator or trustee in bankruptcy has been appointed to their employer, and who are owed certain employee entitlements. The Department of Education, Employment and Workplace Relations (“the Department”) administers GEERS in accordance with GEERS Operational Arrangements (OAs).
Q: Who is eligible for GEERS assistance?
A: GEERS eligibility is set out in the OAs. In summary, to be eligible for GEERS you must:
- have lost your job because your former employer became bankrupt or a liquidator was appointed
- have had your employment terminated due to the appointment of an insolvency practitioner
- have been an employee, not a contractor or sub-contractor
- be owed eligible entitlements by your former employer
- apply to the Department within 12 months of losing your job or the date that a liquidator or a trustee in bankruptcy was appointed to your former employer, whichever is the later.
You may also be eligible for GEERS assistance if you:
- resigned following the appointment of an insolvency practitioner; or
- resigned or your employment was terminated within the six months prior to the appointment of an
- insolvency practitioner.
Q: What are the Operational Arrangements?
A: The GEERS Operational Arrangements (OAs) set out the eligibility and other conditions of GEERS and are used by the Department to determine employee eligibility and the amount of any GEERS advance.
Q: What entitlements are covered by GEERS?
A: Eligible entitlements under the 1 January 2011 GEERS Operational Arrangements are:
- up to 3 months unpaid wages for the period prior to the appointment of the insolvency practitioner (including amounts deducted from your wages, such as for superannuation, but not passed on to your superannuation fund)
- unpaid annual leave
- unpaid long service leave
- up to a maximum of 5 weeks unpaid payment in lieu of notice
- up to a maximum of 4 weeks redundancy pay for each completed year of service.
NOTE:
- In calculating entitlements a maximum annual wage is used. The Maximum Annual Wage for 2011-2012 is $118,100.00 or a weekly wage of $2263.90.
- Unremitted employer contributions under the Superannuation Guarantee are not an eligible entitlement under GEERS and are covered by separate legislative requirements. For information about the Superannuation Guarantee, please contact the Australian Taxation Office Superannuation Information line on 131 020. If you have unremitted employer contributions under the Superannuation Guarantee, you may wish to contact the insolvency practitioner appointed to manage your former employer’s affairs to discuss your rights as an employee creditor.
Q: What entitlements are not covered by GEERS under the Operational Arrangements?
A: Entitlements not covered by GEERS include:
- employer’s contributions to superannuation
- any entitlements that accrue after the appointment of an insolvency practitioner
- reimbursement payments
- one-off or irregular payments paid by the employer
- bonus payments
- non-ongoing or irregular commissions.
Q: What is the role of the insolvency practitioner?
A: When an employer goes into liquidation or becomes bankrupt, the insolvency practitioner takes on the powers of the officers of the company. The insolvency practitioner is asked by the Department to provide information from the company’s books and records so that your claim can be assessed. The Department will usually make a GEERS advance through the insolvency practitioner, who will be asked to make the payments to employees.
Q: What is the role of the Department which administers GEERS?
A: The Department is responsible for assessing GEERS claims based on the GEERS Operational Arrangements.
For more information, please contact GEERS on: