To Quit ,or hold off for a possible Redundancy?

justlookin on 11/12/2024 - 15:00

Talking with a mate today, and he tells me that the company he works for in retail , is in administration, and looks to be (possibly) closing the doors by mid/ late January.

He has 2 weeks off, from after new year, ( the last two weeks off for QLD school holidays, to spend with his kids) , and was asking me today which way he should go about it, to quit now, serve his 2 weeks, grab what's owing in all holidays, day owing ect, or wait for a redundancy? ( which has not been offered as of yet).

There is no possibility of being re-employed in another arm of this company, for it is all going. I am not able to advise or help in any way, for I have been self employed for most my life.

Can anybody give any insight on this scenario at all? Thanks!

Education & Work

Comments

  • Archi on 11/12/2024 - 15:09
    +3

    depends how long your friend has worked there and what is the potential redundancy package worth

  • Fredfloresjr on 11/12/2024 - 15:10
    +36

    If the company went on administration it means they have no more funds. Employees gets nothing or very minimal. Don't expect for redundancy.

    • barge-in hunter on 11/12/2024 - 15:12
      +9

      This. Get out with as much pay as possible, as soon as possible

    • Meho2026 on 11/12/2024 - 15:19
      +15

      If it proceeds to liquidation then the government Fair Entitlements Guarantee covers redundancy pay

      • ColtNoir on 12/12/2024 - 12:02

        That one’s good to know. Ty

    • netjock on 11/12/2024 - 15:20
      +1

      this is the right answer.

      ASIC page https://asic.gov.au/regulatory-resources/insolvency/insolven…

    • Hardlyworkin on 11/12/2024 - 21:39

      If you want a somewhat half right answer, ask a question about workplace rights.

    • HeWhoKnows on 12/12/2024 - 07:49
      -3

      WRONG!
      The company has plenty of assets to sell off.
      Emplyees are at the front of the list to get paid

      • Fredfloresjr on 12/12/2024 - 08:00
        +2

        Yes you are correct but you will have to beg crying with blood and bring the best solicitor first. Trust me, this will take months even years for you to get something back, most of the time nothing. If you think this will happen on your next pay fortnight cycle, you are dreaming.

  • soan papdi on 11/12/2024 - 15:17
    +9

    Leave early so he can get something. Also ask him to audit his Super payments.

  • Drpepper666 on 11/12/2024 - 16:14
    +7

    Consider leaving early. Or you are competing with all your co-workers on the job market

  • happydude on 11/12/2024 - 17:04
    +2

    Doesn't need to wait. They can ask the administrator if they can be made redundant.

    • SlickMick on 12/12/2024 - 10:00

      ?
      "I don't want to hang around until the end. Can you give me a bag of cash to leave now?"

      I know that wouldn't have flown in one company I worked for. It was sold for it's assets and everyone made redundant. I was given an end date, and an opportunity to seek for a new job. I found one, and arranged to start after my redundancy date. Company A decided they wanted me a little longer, and because I'd committed elsewhere, I didn't get the redundancy payout.

      • happydude on 12/12/2024 - 12:35

        If there is going to be rounds of redundancies (as is common if it is being wound up), there is no harm in asking to be in the first round.

  • brendanm on 11/12/2024 - 20:04

    You Your friend will be getting cents in the dollar for any outstanding entitlements when it's wound up. The employees are just about the least important creditors.

    • lgacb08 on 11/12/2024 - 22:38
      +1

      wrong, most employee entitlements are pretty high up the creditors list, but not redundancy.

  • jv on 11/12/2024 - 21:50
    -3

    I'd wait it out. I reckon they are bluffing…

  • Benoffie on 11/12/2024 - 21:50
    +1

    Dont wait. My parent has been advised of incoming similar situation (severe job shedding due to loss of contract worth 40%+ of national workload). Redundancies are a given.

    We are trying very hard to get them to initiate a conversation now to leave. Waiting until the end gets you nothing and no where.

  • JIMB0 on 11/12/2024 - 21:54
    +2

    You'd stand to gain nothing by quitting. Your entitlements are government guaranteed. I'd stick around for the severance money.

  • Drakesy on 11/12/2024 - 22:15
    +4

    Use your holidays and make sure they pay your superannuation for the time.

    • lgacb08 on 11/12/2024 - 22:39
      +3

      actually use your sick leave first if possible.

      • Drakesy on 12/12/2024 - 00:40
        +4

        This is the way
        "I need to take stress leave because im worried i may not have a job in a month's time"

  • 2esc on 12/12/2024 - 09:19
    +1

    Use up all the entitlements while there then depending on how long they have been there weigh up the potential redundancy amount and then decide to stay or go.

  • SlickMick on 12/12/2024 - 10:03
    +1

    Look for a new job. If you find a good one, that will make yuor mind up. If you haven't found one by the time of the payout, that's the 2nd best outcome. The only bad situation is if you can't find a good job even after the redundancy.

  • pandadude on 12/12/2024 - 10:31
    +1

    Just check the business is not classifieds as a small business under Fair Work.

    https://www.fairwork.gov.au/ending-employment/redundancy/who…

  • Nucleus Acumbens on 12/12/2024 - 20:32

    For the effort that might be required to access long service leave, is it worth enough for you to pursue it in a climate where it may not be available even if it is legally awarded to you?

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