Author adminPosted on Categories Industrial relations Leave a comment on When a Company Collapses: Can You Still Hold Bosses Accountable Under the Law?
Dealing with workplace disputes can feel overwhelming, especially when the employer company goes into liquidation or administration. Many employees worry that if a business shuts its doors or enters external administration, all chances of recovering unpaid entitlements, wages, or compensation vanish entirely.
Fortunately, the law provides mechanisms to protect workers. A recent matter handled by our team highlights how legal avenues can still be pursued against individuals involved in a company’s breaches, ensuring that corporate insolvency does not automatically become a shield for personal responsibility.
When an employer company enters liquidation or voluntary administration, specific sections of the Corporations Act 2001 (such as sections 440D and 500(2)) generally act to “stay” or freeze civil proceedings against the company itself. This moratorium exists to give administrators or liquidators breathing space to manage property and draft orderly resolutions without the distraction of ongoing litigation.
However, a company entering liquidation does not mean that individuals who actively participated in workplace contraventions are let off the hook.
Under Section 550 of the Fair Work Act 2009, anyone who is “involved in” a contravention of a civil remedy provision is treated as having contravened that provision themselves.
Case law consistently demonstrates that accessorial liability applies to company directors, managers, or guiding minds who:
1. Intentionally participate in the conduct.
2. Have actual knowledge of the essential facts making up the breach.
3. Act as the driving force behind workplace non-compliance.
As various courts have repeatedly affirmed, employers cannot use corporate insolvency or personal bankruptcy as a refuge to escape statutory obligations. Even if primary claims against the company are paused due to liquidation, proceedings can typically continue against involved individuals to seek compensation, penalties, and declarations.
Navigating corporate insolvency, employment rights, and accessorial liability requires careful legal strategy. Whether you are facing complex workplace disputes or require dedicated guidance through family law and general litigation matters, having an experienced legal team by your side makes all the difference.
At Sterling Law, we pride ourselves on delivering clear, practical, and approachable legal advocacy tailored to your unique circumstances. We strive to make the legal process as stress-free and transparent as possible, ensuring you feel supported every step of the way.
Are you currently navigating a challenging workplace dispute or corporate recovery issue, and wondering what your options are? Contact our team today to discuss how we can assist you.
Author adminPosted on Categories Industrial relations 2 Comments on Teal MP sued by staffer Sally Rugg under Fair Work Act
All is not well in teal world, despite their fancy lattes, their trendiness and their pious devotion to social justice.
Left-wing activist Sally Rugg is suing new member for Kooyong Dr Monique Ryan in the Federal Court for an alleged breach of general protections under the Fair Work Act.
Continue reading “Teal MP sued by staffer Sally Rugg under Fair Work Act”
Author adminPosted on Categories Industrial relations 2 Comments on UK tribunal holds calling a man bald is sex harassment
Tony Finn was employed by beer barrel stopper maker British Bung Company as an electrician between 22 September 1997 and 25 May 2021.
In late July 2019 an altercation between Finn and Jamie King occurred. Finn alleged of that incident that:
“I was working on a machine that I had to cover awaiting specialist repair. The covers were taken off, and it was apparent that Jamie King had done this. When I spoke to him about it, he began to call me a stupid old bald cunt and threatened to ‘deck me.’ Fearful for my personal safety I retreated to the nearby office of Ady Hudson, supervisor. Jamie continued his tirade of threats and abuse at the office door.”
Continue reading “UK tribunal holds calling a man bald is sex harassment”
Author adminPosted on Categories civil litigation, Industrial relations, litigation 2 Comments on Peter Ridd loses High Court appeal
Professor Peter Ridd’s appeal to the High Court over the termination of his employment by James Cook University (JCU) has been dismissed.
Author adminPosted on Categories Industrial relations 2 Comments on High Court upholds freedom to contract casually
Robert Rossato was employed by WorkPac, a labour-hire company pursuant to a series of six contracts, or “assignments” between 28 July 2014 and 9 April 2018, when he retired. During that time, WorkPac provided his services to Glencore at one or other of the Collinsville and Newlands mines. Each contract was entitled “Notice of Offer of Casual Employment – Flat Rate” except for the third contract, which was entitled “Notice of Offer of Casual Employment”. At all relevant times, WorkPac treated Mr Rossato as a casual employee.
Most of the time, Rossato worked according to either a “7/7 roster” (seven days on, seven days off) or a “5/5/4 roster” (five days on, five days off, four days on, five days off, five days on, four days off). The only exceptions to these arrangements were when he undertook additional training or inductions, and during mine shutdowns. Rossato was never asked by WorkPac or Glencore whether he intended to attend work on a day he was rostered; nor did Rossato ever enquire whether he would be required to attend work on a day he was rostered.
On 2 October 2018, in reliance on the decision in WorkPac Pty Ltd v Skene [2018] FCAFC 131, Rossato wrote to WorkPac claiming that he had not worked for it as a casual employee, and claiming that he was entitled to be paid for untaken annual leave, public holidays, and periods of personal leave and compassionate leave taken by him during his employment. These entitlements were said to be due under the Fair Work Act 2009 and the WorkPac Pty Ltd Mining (Coal) Industry Enterprise Agreement 2012, which governed Rossato’s employment.
Continue reading “High Court upholds freedom to contract casually”
Author adminPosted on Categories Industrial relations, Professional discipline 3 Comments on Bangalow lawyer loses appeal against successful sexual harassment suit Former solicitor Owen Hughes, who likened himself to “a sleek kangaroo” and novelist Jane Austen’s noble brooder Mr Darcy in Pride and Prejudice, has lost his appeal against a judgment for sexual harassment he perpetrated against an employee.
This blog had previously reported on the Owen Hughes sexual harassment case brought by a former employee of his law practice.
Junior/trainee solicitor Catherine Mia Hill began working with Owen Hughes’ Bangalow based law firm Beesley and Hughes Lawyers in May 2015. Soon after, Hughes offered to represent her in a mediation for her own family law matter, and she agreed.
A couple of months later, Hughes started his course of sexual harassment by sending Hill emails telling her that he thought she was attractive, and he wanted to be in a relationship with her.
Continue reading “Bangalow lawyer loses appeal against successful sexual harassment suit”
Author adminPosted on Categories Industrial relations Leave a comment on James Cook University wins appeal against Professor Peter Ridd
In a blow to academic freedom, James Cook University (JCU) has won its appeal against a judgment in favour of a sacked academic who challenged climate science alarmism.
Continue reading “James Cook University wins appeal against Professor Peter Ridd”
Author adminPosted on Categories Industrial relations 3 Comments on Employee caught stealing alcohol ‘unfairly dismissed’
The Fair Work Commission (FWC) is known for sometimes making unfair dismissal decisions which arguably are counter-intuitive and/or contrary to community standards and expectations. The following case, in which a Qantas employee was caught stealing and later lied about the stealing, is an excellent example.
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Author adminPosted on Categories civil litigation, Industrial relations, Professional discipline 6 Comments on Bangalow lawyer Owen Hughes successfully sued for sexual harassment A Bangalow solicitor’s sexual harassment of a single mum who worked for him has proven to be costly, and may well end his legal career.
This blog had previously reported on the Owen Hughes sexual harassment case brought by a former employee of his law practice.
Junior/trainee solicitor Catherine Mia Hill began working with Owen Hughes’ Bangalow based law firm Beesley and Hughes Lawyers in May 2015. The evidence showed that that he thought Hill was attractive, wanted to be in a relationship with her and that he communicated that to her. Hughes offered to represent her in a mediation for her own family law matter, and she agreed. Continue reading “Bangalow lawyer Owen Hughes successfully sued for sexual harassment”
Author adminPosted on Categories civil litigation, Industrial relations, Liberty, litigation, Unfair dismissal Leave a comment on Israel Folau settles claim with Rugby Australia
Following a marathon mediation, former Wallabies star Israel Folau and Rugby Australia have settled their dispute over the termination of Folau’s employment with Rugby Australia after he made controversial comments on Twitter about homosexuality.
The case was notable and of political significance because it highlighted the tensions between the rights of employers to dismiss workers to preserve their own reputational interests, freedom of religion, and employees being able to publicly express their own opinions outside of work. Continue reading “Israel Folau settles claim with Rugby Australia”
