The Government has secured passage of its legislation that aims to significantly increase protection for workers' entitlements under the Corporations Law, the Minister for Financial Services & Regulation, Joe Hockey, said today.
The Corporations Law Amendment (Employee Entitlements) Bill 2000 has now passed through the Parliament.
The Bill amends the Corporations Law to increase protection for employee entitlements in two ways.
- First, it will ensure directors dont use asset stripping techniques to avoid paying employees their proper entitlements.
- Second, a new offence will be added to the Corporations Law which targets agreements and transactions entered into for the purpose of avoiding payment of employee entitlements. Severe penalties will apply for breaches of these provisions.
"This is good news for Australia's workers," the Minister said. " Workers will now enjoy the benefits of the added protections under this Bill, as well as access to the Governments Employee Entitlements Support Scheme, which had effect from the beginning of this year."
The Bill was introduced into Parliament in February and was held up following amendment in the Senate by the Opposition and Democrats.
The Government thought the amendment was unacceptable and would cause uncertainty in business decision-making.
"I fail to understand how the Opposition and the Democrats could seriously have moved an amendment which is so broad and uncertain, and which undermines basic principles of corporate identity. It is a indication that they do not understand the Corporations Law nor how corporations work," the Minister said.
"However, we are pleased the Opposition eventually decided to agree to the Bill in its unamended form.