A chief financial officer who is seeking $1m in damages for wrongful dismissal from his bankrupt employer will have to compete with other ordinary creditors for the funds, after the Federal Court ruled the sum is not a "retrenchment payment" under corporations law.
The Abbott Government this morning introduced a Bill in the House of Representatives to cap redundancy payments under the Fair Entitlements Guarantee scheme at a maximum of 16 weeks, describing the current benefits for employees of insolvent companies as "overly generous" and as creating a "moral hazard".
The Department of Employment has referred to the corporate watchdog allegations that a textile company entered into “contrived arrangements” to avoid paying redundancy entitlements to 60 workers.
