Publications Details

Journal Article

Author
Noakes, D.B.
Title
Reform to the Law of Corporate Groups in Australia to Protect Employees
In
University of Britiah Columbia Law Review
Imprint
vol. 34, no. 1, 2000, pp. 239-292
Abstract

The recovery of employee entitlements upon the insolvency of the employer has been afocus of international legal regulation for some time. In a number of recent cases in Australia, employees who have been owed significant amounts in unpaid wages and other entitlements have been unable to recover these amounts following the insolvency of their employer. Corporate groups have been a particular feature of these cases because the limited liability available to each group company provides the mechanism whereby it is possible to manipulate the structure of the group to transfer assets amongst several companies to ensure that assets are removed from the reach of employees. This article examines the corporate and industrial regulation issues involved in protecting employees against such conduct by employers, and critically discusses potential legislative solutions, taking into account the differing international approaches to the problem.