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Work experience query


Adeeba
(@adeeba)
Active Member Registered
Joined: 4 years ago
Posts: 6
Topic starter  

Hi Mark,

I was working as an Accountant, however, 3 weeks were left for finish of a year and the company went in voluntary administration (NOT Liquidation!). So thereafter, I worked with the administrators for atleast 20 hours (as per rule) and was paid thereby finishing my 1 year of experience. Will my experience still be valid? 

PS: - The pay slip has my original companies name and ABN as well eg: abc ltd (Administrators apponited)

 

Please advise

Thanks

 


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Mark
 Mark
(@mark)
Illustrious Member Admin
Joined: 15 years ago
Posts: 875
 

Hi Abeeda, I am sorry for the delay (I missed the notification of a new post) ? 

Contractually, who was your employer for the final three weeks? Assuming this didn't change then I would suggest your work requirements would be satisfied. 

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Adeeba
(@adeeba)
Active Member Registered
Joined: 4 years ago
Posts: 6
Topic starter  

Hi Mark,

No worries, thanks for your response.

Now, ascertaining the employer is tricky. Its a grey area. Basically, when a company cannot pay off its debts and to avoid further consequences the company goes into administration. After the appointment of administrators,(after sacking all staff barring a few) they try to sell off the business. So, technically they can be called as the owners of the company bound by corporate law. The company still exists, trades etc but the it is the administrators who pay the bills but under the same company name.

Therefore, I work for the same company and they pay the same wage rate and I retain my position (FYI- only few people have been retained. Almost all staff sacked except few of us who are now casuals)till they sell the company. As mentioned before, they paid me like I used to receive pay previously - company name (administrators appointed). 

I have checked with CPA and they advised that they shall assess the experience as long as I have done the necessary skilled paid work for 20 hours a week.

What would be your advise? It is a very confusing situation!

Thanks


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Adeeba
(@adeeba)
Active Member Registered
Joined: 4 years ago
Posts: 6
Topic starter  

Hi Mark,

 

I have just stumbled across S. 437B of Corporation Act 2001 that clearly states that Administrators act as Company's agent when performing the function or exercising the power. Thus, they are not the owners of the company. So, I think we can say that until the business is sold or otherwise a resolution is reached - although the power no more lies with the directors, they would still be the owners. What you think?

Thanks


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Mark
 Mark
(@mark)
Illustrious Member Admin
Joined: 15 years ago
Posts: 875
 

I would be inclined to agree with you Adeeba. Employed directly or via an agent for the company who is legally recognised as being able to act. Your employment status has still continued so I think you'd be fine.  ? 

Thanks for your research on this matter and for sharing your findings here. I'm sure this will help if someone else finds themselves in this slightly obscure situation! 

Good call on also clarifying with CPA.  Onto the next step hey!?

All the best

Mark 

Please note - My forum posts should be considered general advice
Please seek professional, qualified advice if you are still not sure.
See our Disclaimer for more information here.
.
.
Useful Links: Looking for a Sponsored Job? Click Here
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