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FAIR ENTITLEMENTS GUARANTEE ACT 2012 - SECT 16

General rule for work ing out the amount of an advance

  (1)   If a person is eligible for an advance for the person ' s employment by an employer, the amount of the advance is the total of the amount worked out under Division   2 for each of the person ' s employment entitlements for the employment.

Excluding some basic amounts if person is offered similar work

  ( 2 )   However, do not include in the total the amount worked out under Division   2 for the person ' s payment in lieu of notice entitlement or redundancy pay entitlement if:

  (a)   the business in which the employer employed the person is transferred to someone else (the transferee ) other than the bankruptcy trustee of the employer; and

  (b)   within 14 days of the end of the person ' s employment by the employer, the transferee offers to employ the person:

  (i)   to do work that is the same, or substantially the same , as the work the person did for the employer; and

  (ii)   on terms and conditions substantially similar to, and, considered on an overall basis, no less favourable than, the person ' s terms and conditions of employment with the employer immediately before the end of that employment.

  ( 3 )   Subsection   ( 2 ) is taken never to have applied if the transferee employs the person (whether as a result of the offer described in paragraph   ( 2 )(b) or not) and either:

  (a)   the transferee terminates that employment because the transferee no longer requires the job done by the person to be done by anyone, except where this is due to the ordinary and customary turnover of labour; or

  (b)   an insolvency event happens to the transferee, the person ' s employment by the transferee ends and one or more of the following applies:

  (i)   the end was due to the insolvency of the transferee;

  (ii)   the end occurred less than 6 months before the appointment of an insolvency practitioner for the transferee;

  (iii)   the end occurred on or after the appointment of an insolvency practitioner for the transferee.

Note:   If the amount of an advance is decided , relying on subsection   ( 2 ), and the e vents described in subsection   ( 3 ) happen later (so that subsection   ( 2 ) is taken never to have applied), the decision can be reviewed under Division   2 of Part   6.

  (4)   Subsection   ( 2) does not apply for the purposes of working out the amount of an advance the person is eligible for because of an insolvency event that happened to the employer on or after 1   July 2014.


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