New employee priority amount in business failure

From 28 September 2012 the maximum priority amount for employees in liquidations, receiverships and bankruptcies will increase from $18,700.00 to $20,340.00 per employee.

Liquidators, receivers and the Official Assignee in a personal bankruptcy must pay certain amounts to employees, in priority to ordinary unsecured creditors. 

These preferential employee entitlements include:

Filed under:
New Zealand, Employment & Labor, Insolvency & Restructuring, Chapman Tripp, Bankruptcy
Authors:
Marie Wisker , Geoff Carter , Pheroze Jagose
Location:
New Zealand
Firm:
Chapman Tripp