Can I pursue an employer for unpaid wages if they are no longer trading?

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As a result of cashflow issues, some business may be forced to close and liquidate to settle their debts. As an employee, there are steps you can take to make sure you get the unpaid wages you are owed.   

This resource is for employees who are owed payments from their employer and believe that the employer is about to close or has already closed. It includes information about:  

  • How to confirm the company status of your employer
  • What to do next depending on the company status of your employer

This resource is written for you if all of the following questions apply: 

  I am an employee 

  My employer is a company

  I have reason to believe my employer is about to close or my employer has closed down

  I am owed payment from my employer 

If you think your employer is about to close or has closed, the first thing you need to do is check whether they are still registered as a company.  

It is important to check whether your employer is registered as a company because the pathways for pursuing an employer for outstanding payments changes depending on whether they are still registered as a company with the Australian Securities and Investment Commission (ASIC).   

This is because when a company stops operating because of cashflow problems, they will have to liquidate their assets to settle any outstanding debts. If they are unable to settle their debts even after liquidation, they will either choose to deregister with ASIC voluntarily or ASIC will take steps to deregister them. 

The quickest way to search for the status of a company is by searching on the ASIC database. You can search by inputting your employer’s entity name, Australian Business Number (ABN), or Australian Company Number (ACN).  

Once you have found the right ASIC record, you should look at the status of the company under “Company Summary”.  It will list one of the following options:  

  • Registered  
  • Deregistered 
  • SOFF (Strike off status)   
  • External Administration (or words relating to administration or administrators) 
  • In liquidation (or words relating to liquidation)    

Your next steps will be different depending on what the status of the company is.  

If you have a specific, non-urgent legal question you need help with, you can ask a lawyer for free by using our online legal clinic called Justice Connect Answers.

This resource was last updated on 10 September 2024. This is legal information only and does not constitute legal advice. You should always contact a lawyer for advice specific to your situation. Please view our disclaimer for more information.

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