Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 558

558. (1) Where a contract of employment with a company being wound up was
subsisting immediately before the relevant date, the employee under the
contract is, whether or not he or she is a person referred to in subsection
(2), entitled to payment under section 556 as if his or her services with the
company had been terminated by the company on the relevant date.

(2) Where, for the purposes of the winding up of a company, a liquidator
employs a person whose services with the company had been terminated by reason
of the winding up, that person shall, for the purpose of calculating any
entitlement to payment for leave of absence, or any entitlement to a
retrenchment amount in respect of employment, be deemed, while the liquidator
employs him or her for those purposes, to be employed by the company.

(3) Subject to subsection (4), where, after the relevant date, an amount in
respect of long service leave or extended leave, or a retrenchment amount,
becomes payable to a person referred to in subsection (2) in respect of the
employment so referred to, the amount is a cost of the winding up.

(4) Where, at the relevant date, the length of qualifying service of a person
employed by a company that is being wound up is insufficient to entitle him or
her to any amount in respect of long service leave or extended leave, or to
any retrenchment amount in respect of employment by the company, but, by the
operation of subsection (2) he or she becomes entitled to such an amount after
that date, that amount:

   (a)  is a cost of the winding up to the extent of an amount that bears to
        that amount the same proportion as the length of his or her qualifying
        service after that relevant date bears to the total length of his or
        her qualifying service; and

   (b)  shall, to the extent of the balance of that amount, be deemed, for the
        purposes of section 556, to be an amount referred to in paragraph 556
        (1) (g), or a retrenchment payment payable to the person, as the case
        may be.
(5) In this section, "retrenchment amount", in relation to employment of a
person, means an amount payable to the person, by virtue of an industrial
instrument, in respect of termination of the employment.