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Abstract

With the collapse of high-profile corporations in Australia such as Cobar Mines, National Textiles Ltd and Ansett Airlines, the Howard Coalition Government in Australia (1996-2007) in 2000 established the Employee Entitlements Support Scheme (EESS). EESS was later replaced by the General Employee Entitlements and Redundancy Scheme (GEERS), funded by taxpayers to provide limited protection for employee entitlements in the event of corporate insolvency. However, the increased level of insolvencies between 2007and 2009 due to the economic downturn in Australia, placed greater financial pressure on GEERS to provide protection for employees who had lost their jobs and entitlements. As a consequence, the Rudd Government was required to supplement the reserves of GEERS to cope with applications for relief. In this paper the impact of the financial crisis on the GEERS budget is examined.

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