Bankruptcy Act 1966

PART VI - ADMINISTRATION OF PROPERTY  

Division 2 - Order of payment of debts  

Subdivision A - General  

SECTION 109A   DEBTS DUE TO EMPLOYEES  

109A(1)    
Where a contract of employment with a bankrupt was subsisting immediately before the date of the bankruptcy, the employee under the contract is, whether or not the employee is a person referred to in subsection (2) , entitled to payment under section 109 as if the employee ' s employment had been terminated by the bankrupt on that date.


109A(2)    
Where, for the purposes of a bankruptcy, a trustee employs a person whose employment by the bankrupt had been terminated by reason of the bankruptcy, that person shall, for the purpose of calculating any entitlement to payment for long service leave, extended leave, annual leave, recreation leave or sick leave, be deemed, while the trustee employs that person for those purposes, to be employed by the bankrupt.


109A(3)    
Subject to subsection (4) , where, after the date of a bankruptcy, an amount in respect of long service leave or extended leave becomes due to a person referred to in subsection (2) in respect of the employment so referred to, the amount is a cost of the bankruptcy.

109A(4)    
Where, at the date of a bankruptcy, the length of qualifying service of a person employed by the bankrupt is insufficient to entitle that person to any amount in respect of long service leave or extended leave, but, by the operation of subsection (2) , that person becomes entitled to such an amount after that date, that amount:


(a) is a cost of the bankruptcy to the extent of an amount that bears to that amount the same proportion as the length of that person ' s qualifying service after that date bears to the total length of that person ' s qualifying service; and


(b) shall, to the extent of the balance of that amount, be deemed to be an amount referred to in paragraph 109(1)(g) .


 

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