GEERS General Employee Entitlements and Redundancy Scheme
GEERS (General Employee Entitlements and Redundancy Scheme)
The General Employee Entitlements
and Redundancy Scheme (GEERS) is a basic payment scheme designed to assist
employees who have lost their employment as a result of the insolvency of their
employer and are owed certain employee entitlements. The Department of Education,
Employment and Workplace Relations administers the Scheme in accordance with
the GEERS Operational Arrangements (OAs). The OAs are used to determine the eligibility of
employees and the amount of any GEERS advance.[1] Who is eligible? You may be eligible for GEERS
assistance if you:
lost your employment because your
former employer became bankrupt or a liquidator was appointed and are owed
employee entitlements, and
lodge your claim within 12 months of
losing your job or the date of which your former employer became bankrupt or
went into liquidation, whichever is the later.
You may also be eligible for GEERS
assistance if you:
resigned following the appointment
of an Insolvency Practitioner (IP), or
resigned or your employment was
terminated within six months before the appointment of an IP.
Who is not eligible? You are not eligible to receive
GEERS assistance if:
your former employer is under the
control of an administrator, a receiver manager, or is subject to a Deed of
Company Arrangement, a Trust, a Personal Insolvency Agreement, or a Debt
Agreement
you were not an employee, i.e. if
you were a contractor, sub-contractor or agent
you lodge your claim more than 12
months after your employment was terminated or the date on which your former
employer became bankrupt or entered into liquidation, whichever is the later
you were employed by a partnership
and not all partners are subject to insolvency, or
there are funds available from your
former employer or another source to pay your outstanding entitlements within
16 weeks of the department receiving your claim.
What you may be eligible for? You may be eligible to receive
assistance under GEERS for the following employee entitlements:
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 16 weeks unpaid
redundancy entitlement.
If you earn more than the GEERS
maximum annual wage at the date that your employment ceased, your GEERS advance
will be calculated as if you earned that amount. The maximum annual wage for
each financial year is provided below.
Maximum Annual Wage
Financial year
$108 300 per year ($2076.04 per
week)
1 July 2009-30 June 2010
$106 400 per year ($2039.62 per
week)
1 July 2008-30 June 2009
$101 300 per year ($1941.85 per
week)
1 July 2007-30 June 2008
$98 200 per year ($1882.43 per
week)
1 July 2006-30 June 2007
$94 900 per year ($1819.17 per
week)
1 July 2005-30 June 2006
$90 400 per year ($1732.91 per
week)
1 July 2004-30 June 2005
$85 400 per year ($1,637.06 per
week)
1 July 2003–30 June 2004
$81 500 per year ($1,562.30 per
week)
1 July 2002–30 June 2003
$75 200 per year ($1,441.53 per
week)
1 July 2001–30 June 2002
What is an eligible entitlement? To be eligible under GEERS, your
entitlement must be legislated, under an award, a Statutory Agreement or a
written contract of employment, or otherwise confirmed in writing at the time
of the appointment of the IP.
Contact Workers First Australia on 1300 991 791 for an assessment of your
circumstances. Processing your claim After receiving your Claim Form, the
department will contact the IP who is managing the affairs of your former
employer. The IP will be asked to verify your entitlements using the employer's
records. If the IP
cannot verify your details, the department may ask an independent GEERS
contractor to do this, or you may be asked to complete a statutory declaration
and provide the department with supporting documents. Once your employment and
entitlements have been verified, the department will process your claim. The time taken to determine your
eligibility for GEERS may depend upon the department's ability to obtain
sufficient information from you, the insolvency practitioner who is managing
your former employer's affairs or any third party, where relevant. The department will make your GEERS
advance to the IP, who will deduct tax and forward the GEERS advance to you. In
some cases the amount paid to you may differ from the amount you have put on
your Claim Form. This may depend on the information received from the IP and
your legal entitlements. If you receive any payments towards
your entitlements from any source connected with your employment, it will be
taken into account when calculating your GEERS advance. GEERS advances are
treated as advances under the Corporations Act 2001. This means that if funds
become available during the insolvency process the Government will seek to
recover payments from the insolvent employer up to the amounts you received
under GEERS. Where the department's recovery
rights are not protected, for example where your employer is subject to
bankruptcy under the Bankruptcy Act 1966, you will be required to sign a Deed
of Undertaking prior to payment being released. The department informs Centrelink of
any advances made; this may affect your Centrelink entitlements. To discuss the
effect of GEERS payments please contact Centrelink on 13 10 21. Requests for information The Government may require
additional information from you to assess your claim. If you do not respond
within the required timeframe, you may be deemed ineligible for GEERS
assistance. How can Workers First Assist You? The application to GEERS is a relatively simple process
however proving your entitlements may not be so easy especially if the employer
has not kept accurate records of your employment.In those circumstances you will need to
provide evidence about your entitlements. Workers First can help with all aspects of your GEERS
claim from making the initial application through to proving your entitlements
including dealing with the Government, the liquidator and the employer so you
can get on with making a living and not worry about how you are going to
recover your entitlements. Call Workers First on 1300 991 791 for an assessment of
your circumstances.
[1]
Source: Department of Education Employment and Workplace Relations
website
http://www.deewr.gov.au/WorkplaceRelations/Programs/EmployeeEntitlements/GEERS/Common/Pages/HowClaimWillBeAssessed.aspx
