The "true employer" question is one which frequently arises in insolvencies of corporate groups, and it also arises in solvent workplace dispute scenarios. Answering it, however, is often hampered by inconsistent or incomplete records and very divergent returns for employees, depending on the outcome of the question.

The COVID-19 pandemic and the associated lock downs have led to a global economic slowdown, and Australia has been no exception. GDP fell by 0.3% in the March quarter, and on 3 June 2020 Treasurer Josh Frydenberg announced that Australia was officially in its first recession in 29 years.

While the Australian Government was quick to provide a range of economic support measures – having already spent $289bn or 14.6% of GDP in an attempt to keep the economy afloat – Treasury expects Australia's GDP will decline by 0.5% in 2019-20 and a further 2.5% in 2020-21.

The Corporations Act 2001 sets out a regime for the order in which certain debts and claims are to be paid in priority to unsecured creditors.

That's straightforward enough for a liquidator, right?

Unfortunately, matters are not that straightforward. In effect, there are two priority regimes under the Act for the preferential payments of particular creditors, each of which applies to a different "fund", and we've observed this has led to some liquidators being unsure of how to proceed – or even worse, using funds they should not.

En un post anterior, les informábamos sobre la aprobación de la Norma Foral 6/2020, que, entre otras medidas, armonizaba para determinadas operaciones el régimen de neutralidad fiscal vizcaíno con la regulación de Territorio Común.

This decision puts to rest some of the uncertainty which arose due to the NZCA's approach in Timberworld and helps to solidify liquidators' prospects of recovering maximum preferential payments. 

Preferential payments can be an important source of funding for liquidators – and the recent decision in Bryant in the matter of Gunns Limited v Bluewood Industries Pty Ltd [2020] FCA 714 is a source of some relief for liquidators.

Timberworld – uncertainty over the impact on Australian liquidators

Law nº 75/2020, published in the Official Gazette in November 27, 2020, and in force from November 28, 2020 to December 31, 2021, has established the following:

a) An exceptional temporary regime for extending the period for concluding the negotiations undertaken with a view to the approval of the recovery plan or payment agreement, and granting an adjustment period for the insolvency plan proposal, within the scope of the COVID -19 pandemic.

Como ya hiciera la Comisión Europea con su instrumento de liquidez para apoyo a la solvencia (Solvency Support Instrument) lanzado a finales de mayo y cuyos rasgos generales se describen aquí, el Gobierno de España ha creado, mediante el Real Decreto-ley 25/2020, un nuevo fondo para intentar prevenir las insolvencias

Desde el pasado 23 de marzo, con esta newsletter en Garrigues hemos hecho un esfuerzo por acercaros aquellos temas regulatorios de los que semana a semana las empresas teníais que estar más pendientes desde todas las áreas de práctica del derecho de los negocios. Dado que el estado de alarma toca a su fin en unos pocos días, esta será la última entrega de una publicación que esperamos haya cumplido su función. A partir de ahora, os seguiremos manteniendo informados a través de nuestros formatos habituales de Alertas, Comentarios, Perspectivas o Newsletters.

Preparation of financial statements and corporate income tax, recommencement of time periods, remote trials, gradual return to workplaces, insolvency proceedings and compliance with criminal law

Los plazos administrativos se reanudarán el próximo 1 de junio, mientras que los plazos procesales y sustantivos lo harán el 4 de junio, tal y como aparece contemplado en el BOE del 23 de mayo de 2020.