4.3.3.70 Income from General Employee Entitlements & Redundancy Scheme (GEERS)

Background

The GEERS is a basic payment scheme administered by DEEWR, in accordance with the GEERS Operational Arrangements.

Qualification

Employees may be eligible for GEERS assistance if:

• an insolvency practitioner has been appointed to their former employer, and
• their employment has ceased as a result of this appointment, and
• they were owed unpaid employee entitlements.

Where an insolvency practitioner has been appointed on or after 1 November 2005, to be eligible for GEERS assistance, their employer MUST have also entered into liquidation or bankruptcy.

Payability

Under the scheme, employees may be eligible to receive payment for eligible entitlements that are provided for in legislation, an award, a Statutory Agreement or a written contract of employment, or otherwise evidenced in writing, for amounts outstanding in relation to:

• unpaid wages,
• unpaid annual leave,
• unpaid long service leave,
• unpaid pay in lieu of notice, and
• up to 8 weeks unpaid redundancy pay.

More information & how to apply

For more information or a claim form, go to http://www.workplace.gov.au/workplace/Programmes/EmployeeEntitlements/GEERSV2/GEERS-thefacts.htm, or contact GEERS by phone on 1300 135 040 or by email to GEERS@dewr.gov.au.

Treatment of income

For social security purposes, payments received under the scheme are treated in the same way as if the employer paid them to the employee.

Income maintenance period

Payments made in respect of leave and redundancy entitlements are treated as ordinary income and the IMP is applied from when the GEERS payment is received by the person.

Example: Long service, recreation, sick leave and rostered days off.

Liquid assets waiting period

Payments made as a consequence of redundancy may be assessed as a liquid asset under the LAWP for new claims.

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Last reviewed: 20 September 2006