Are Directors Personally Liable for Unpaid Employee Entitlements?

In a unique case unfolding in Marrickville, NSW, a former manager of a multi-disciplinary workshop and education center is pursuing unpaid entitlements from their liquidated employer. This legal battle brings into focus the personal liability of the company’s former director. From August 2021 to February 2023, the center also sublet its premises to other entities and was primarily funded by a related charitable organization. Despite having a clear management structure, with a general manager overseeing daily operations while the director focused on long-term strategy, financial liabilities became glaringly apparent post-liquidation. The director, who attended only around six staff meetings annually, claimed she was not involved in day-to-day operations and had contributed over $300,000 to the company over a decade without any personal compensation. This case highlights a critical issue: When financial troubles strike an organization, to what extent are directors personally accountable for unpaid employee entitlements?

Director Responsibilities and Liabilities

In an unfolding case in Marrickville, NSW, a former manager of a multi-disciplinary workshop and education center is seeking unpaid entitlements from their now-liquidated employer. This legal battle scrutinizes the personal liability of the company’s former director. Between August 2021 and February 2023, the center also leased part of its premises to other entities and was largely funded by a related charitable organization. Despite a clear management structure—where a general manager handled daily operations, and the director focused on long-term strategy—financial issues became evident post-liquidation. The former director, who attended roughly six staff meetings per year, asserted that she wasn’t involved in daily operations and had contributed over $300,000 to the company over a decade without personal compensation. This case underscores a critical question: When an organization faces financial difficulties, to what extent can directors be held personally responsible for unpaid employee entitlements?

Explore more

Jenacie AI Debuts Automated Trading With 80% Returns

We’re joined by Nikolai Braiden, a distinguished FinTech expert and an early advocate for blockchain technology. With a deep understanding of how technology is reshaping digital finance, he provides invaluable insight into the innovations driving the industry forward. Today, our conversation will explore the profound shift from manual labor to full automation in financial trading. We’ll delve into the mechanics

Chronic Care Management Retains Your Best Talent

With decades of experience helping organizations navigate change through technology, HRTech expert Ling-yi Tsai offers a crucial perspective on one of today’s most pressing workplace challenges: the hidden costs of chronic illness. As companies grapple with retention and productivity, Tsai’s insights reveal how integrated health benefits are no longer a perk, but a strategic imperative. In our conversation, we explore

DianaHR Launches Autonomous AI for Employee Onboarding

With decades of experience helping organizations navigate change through technology, HRTech expert Ling-Yi Tsai is at the forefront of the AI revolution in human resources. Today, she joins us to discuss a groundbreaking development from DianaHR: a production-grade AI agent that automates the entire employee onboarding process. We’ll explore how this agent “thinks,” the synergy between AI and human specialists,

Is Your Agency Ready for AI and Global SEO?

Today we’re speaking with Aisha Amaira, a leading MarTech expert who specializes in the intricate dance between technology, marketing, and global strategy. With a deep background in CRM technology and customer data platforms, she has a unique vantage point on how innovation shapes customer insights. We’ll be exploring a significant recent acquisition in the SEO world, dissecting what it means

Trend Analysis: BNPL for Essential Spending

The persistent mismatch between rigid bill due dates and the often-variable cadence of personal income has long been a source of financial stress for households, creating a gap that innovative financial tools are now rushing to fill. Among the most prominent of these is Buy Now, Pay Later (BNPL), a payment model once synonymous with discretionary purchases like electronics and