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 they:

• lost there employment because their former employer became bankrupt or a liquidator was appointed and are owed employee entitlements,
• lodge their claim within 12 months of losing their job or the date of which their former employer became bankrupt or went into liquidation, whichever is the later, and
• are entitled to reside permanently in Australia.

Employees may also be eligible for GEERS assistance if they:

• resigned following the appointment of an insolvency practitioner, or
• resigned or their employment was terminated within 6 months before the appointment of an insolvency practitioner.

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:

• up to 3 months unpaid wages for the period prior to the appointment of the insolvency practitioner (including amounts deducted from their wages, such as for superannuation, but not passed on to the employee's superannuation fund),
• unpaid annual leave,
• unpaid long service leave,
• up to a maximum of 5 weeks unpaid payment in lieu of notice,
• up to a maximum of 16 weeks unpaid redundancy entitlement.

More information & how to apply

For more information about GEERS:

• go to www.deewr.gov.au/geers, or
• contact GEERS by phone on 1300 135 040, or
• send an email to GEERS@deewr.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: 6 September 2010