Employees ask about unpaid entitlements after the court liquidation

The questions arrive before the records are ready

The court has wound up the company, and employees ask when wages and other amounts will be paid. Give accurate appointment information and direct entitlement enquiries through the liquidator's process. Do not promise a payment date based on what the old payroll system shows. The immediate contribution management can make is a complete, traceable handover of the relevant employee records.

Identify the payroll cut-off

Record the last completed pay run, the period it covered and any payment that was prepared but not completed. Keep bank evidence separate from payroll calculations. Note outstanding timesheets or corrections. A payslip generated by software does not by itself establish that the employee received the money, and an unprocessed adjustment should not quietly disappear from the handover.

Assist with the records required

ASIC's director guidance requires assistance with company books and records after external administration. Ask the liquidator what employee information and format are needed. Include relevant employment records and known discrepancies through a secure channel. Do not make your own final ruling on an employee's entitlement or alter original records to make the balances appear tidier.

Source: ASIC: Insolvency for directors

Consider a hypothetical incomplete pay run

Imagine payroll preparing wages on the day before the order, but the bank file is never authorised. Staff have payslips and reasonably believe payment is on its way. Tell the liquidator exactly what was prepared and what the bank evidence shows. The example does not decide the eventual amount or source of payment; it identifies a mismatch that needs investigation.

Avoid speculation about available support

Ask the practitioner for the appropriate information employees should receive about claims and any assistance that may be relevant. Eligibility and payment outcomes require assessment. Do not reassure staff that every amount is guaranteed, or suggest they should waive an entitlement to speed matters up. Keep individual questions private and pass them to the person authorised to respond.

Track missing information to completion

Maintain a short list of outstanding timesheets, reconciliations and records requested by the liquidator. Identify who holds them and provide factual updates. Preserve copies of what was supplied and when. A reliable payroll handover helps the process examine staff claims accurately, while avoiding promises that former management cannot make about the timing or amount employees will ultimately receive.