Bankruptcy Act 1966
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Hide history noteWhere a contract of employment with a bankrupt was subsisting immediately before the date of the bankruptcy, the employee under the contract is, whether or not the employee is a person referred to in subsection (2) , entitled to payment under section 109 as if the employee ' s employment had been terminated by the bankrupt on that date.
[ CCH Note: Modification Declaration FRLI No F2021L00261 ( Bankruptcy Regulations 2021 : FRLI No F2021L00261, registered on 19 March 2021 and effective from 1 April 2021.)
Subsection 109A(1) of the Act is modified by substituting the subsection :
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109A(1)
If:
(a) a contract of employment with a person who has since died and whose estate is being administered under Part XI was subsisting immediately before the day of the person ' s death; or
(b) a contract of employment with the trustee, in the trustee ' s capacity as trustee, of an estate that is being administered under Part XI was subsisting immediately before the day of the order for the administration;the employee under the contract is, whether or not the employee is a person referred to in subsection (2) , entitled to payment under section 109 as if the employee ' s employment had been terminated:
(c) in the case that paragraph (a) applies:
(i) by the person; andmentioned in that paragraph; or
(ii) on the day;
(d) in the case that paragraph (b) applies:
(i) by the trustee; andmentioned in that paragraph.
(ii) on the day;
109A(2)
Where, for the purposes of a bankruptcy, a trustee employs a person whose employment by the bankrupt had been terminated by reason of the bankruptcy, that person shall, for the purpose of calculating any entitlement to payment for long service leave, extended leave, annual leave, recreation leave or sick leave, be deemed, while the trustee employs that person for those purposes, to be employed by the bankrupt.
[ CCH Note: Modification Declaration FRLI No F2021L00261 ( Bankruptcy Regulations 2021 : FRLI No F2021L00261, registered on 19 March 2021 and effective from 1 April 2021.)
Subsection 109A(2) of the Act is modified by inserting " or legal personal representative " after " trustee " (wherever occurring).]
109A(3)
Subject to subsection (4) , where, after the date of a bankruptcy, an amount in respect of long service leave or extended leave becomes due to a person referred to in subsection (2) in respect of the employment so referred to, the amount is a cost of the bankruptcy.
109A(4)
Where, at the date of a bankruptcy, the length of qualifying service of a person employed by the bankrupt is insufficient to entitle that person to any amount in respect of long service leave or extended leave, but, by the operation of subsection (2) , that person becomes entitled to such an amount after that date, that amount:
(a) is a cost of the bankruptcy to the extent of an amount that bears to that amount the same proportion as the length of that person ' s qualifying service after that date bears to the total length of that person ' s qualifying service; and
(b) shall, to the extent of the balance of that amount, be deemed to be an amount referred to in paragraph 109(1)(g) .
[ CCH Note: Modification Declaration FRLI No F2021L00261 ( Bankruptcy Regulations 2021 : FRLI No F2021L00261, registered on 19 March 2021 and effective from 1 April 2021.)
Section 109A of the Act is modified by inserting subsection (5):
]
109A(5)
In this section:legal personal representative
, of a deceased debtor, means:
(a) the executor under the deceased debtor ' s will; or
(b) the administrator under letters of administration or court order;of the deceased debtor ' s estate, or a part of that estate.
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