KNOWLEDGE CENTRE

Debt Collection Toolbox: Crack Open a Company With A Creditor’s Statutory Demand

A Creditor’s Statutory Demand (or commonly referred to as a CSD) is a technical letter of demand. It is issued per section 459E of the Corporations Act 2001 (Cth) against corporate entities where the issuing creditor has good reason to believe that there is no dispute in relation to the debt owed.

A CSD can be either supported by a Judgment of a court or an Affidavit and the demand must meet the statutory minimum amount of $4,000.00.

 

How Does a Creditor’s Statutory Demand Work?

The CSD provides a notice period of 21 days in which the debtor company must act. There are strict rules about service and the calculation from the date on which the CSD is delivered. If no action is taken within those 21 days, a presumption of insolvency automatically arises.

This acts as a short cut and for a strict period of 3 months can be used by either the issuing creditor or any other creditor who becomes aware of an expired CSD.

 

What Happens Next?

A presumption of insolvency means a company is presumed to not be in a position to pay its debt as and when they fall due. This then supports a creditor making an application to the Court to wind the company up and appoint a liquidator.

A liquidator has extensive powers to enable him/her to realise (recover or sell) the company’s assets and to also ask tricky questions of the directors such as: Where did all the money go?  Monies realised are then disbursed between all known unsecured creditors.

If a company owes you a debt equal to or greater than $4,000.00, use of a CSD may be suitable. It is not an everyday debt collection tool, but when used properly it can be highly effective.

 

Has your company been served with a Creditor’s Statutory Demand?
Find out what you need to urgently do by reading EL's Knowledge Centre article 

If you need to discuss your company's debt recovery options, get started by making an appointment with EL's Principal Legal Advisor - Disputes, Kirsten Woolston:

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 General Retail Industry Award Wage Increased by 2.5% On 1 September 2021 | Enterprise Legal

As you would have seen in our previous annual wage increase article published in June, the Fair Work Commission announced that it would be rolling out its annual wage increase in stages as a knock on effect of the previous staged increases at the start of the COVID-19 pandemic.

On 1 September 2021 the minimum wages contained in the General Retail Industry Award increased by 2.5% as part of this staged rollout. Employers in the retail industry should ensure that they appropriately review their staff wages and not delay in actioning this increase.

The final stage of the increase rollout will take place on 1 November 2021, with the following Awards increasing by 2.5%:

  • Air Pilots Award 2020

  • Aircraft Cabin Crew Award 2020

  • Airline Operations – Ground Staff Award 2020

  • Airport Employees Award 2020

  • Airservices Australia Enterprise Award 2016

  • Alpine Resorts Award 2020

  • Amusement, Events and Recreation Award 2020

  • Dry Cleaning and Laundry Industry Award 2020

  • Fitness Industry Award 2020

  • Hair and Beauty Industry Award 2010

  • Hospitality Industry (General) Award 2020

  • Live Performance Award 2020

  • Mannequins and Models Award 2020

  • Marine Tourism and Charter Vessels Award 2020

  • Nursery Award 2020

  • Racing Clubs Events Award 2020

  • Racing Industry Ground Maintenance Award 2020

  • Registered and Licensed Clubs Award 2020

  • Restaurant Industry Award 2020

  • Sporting Organisations Award 2020

  • Travelling Shows Award 2020

  • Wine Industry Award 2020

 

To learn more about the wage increase or to receive advice regarding how to best manage award wage increases throughout your business, contact EL's dedicated Workplace Relations team today:

☎️ | (07) 4646 2621
✉️ | Submit an Online Request 


Does My Business Need Terms and Conditions? | Enterprise Legal

Terms and Conditions are an excellent ‘starter’ document which every business should invest in. If you’re starting a new business, it should be the first business document you have in place. If you’ve been in business for a while and have been getting by without a set of Terms and Conditions, you should absolutely still consider them as they become particularly important as your business grows.

 

A well-drafted set of Terms and Conditions will not only protect your business in the event a customer/client makes a claim for defective products or services, it will also clearly deal with important business policies such as refunds, payment timing and methods, insurance and cancellations.

 

Of course, because all businesses are run differently, it follows all Terms and Conditions should be different too. Your specific business methods and procedures should be taken into account in preparing a quality set of Terms and Conditions. For example, if a business requires a deposit to be paid, their Terms should sufficiently state in what circumstances (if any) the deposit would be refunded or otherwise.

 

Whether you’re starting a new business, have been operating for a while without any Terms, or would like a second opinion on your current Terms and Conditions, the expert Business Law Team at Enterprise Legal can help. At Enterprise Legal, we take the time to learn about your business before preparing your Terms and Conditions.

Contact EL's Business Law Team today or book in your Free Business Health Check!

☎️ | (07) 4646 2621
✉️ | Submit an Online Request

 


Upcoming Award Changes - Manufacturing, Hospitality, General Retail, Education Services, Fire Fighting and Pastoral Awards to Change on 27 September 2021

Following on from the successful passing of the Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Act 2021 (Cth), the Fair Work Commission (the Commission) has commenced reviewing and amending current modern awards to ensure they align with the new definition of casual employees and appropriately include mechanisms for casual conversion.

 

Starting with stage 1 awards, the Commission has confirmed that the following awards will be amended on 27 September 2021:

  • General Retail Industry Award 2020
  • Pastoral Award 2020, and
  • Manufacturing and Associated Industries and Occupations Award 2020
  • Hospitality Industry (General) Award 2020
  • Fire Fighting Industry Award 2020
  • Educational Services (Teachers) Award 2020.

 

The Commission has highlighted the importance of ensuring existing awards are appropriately amended to remove outdated terms relating to causal employment as historical definitions including “engaged as a casual”, “paid by the hour” and “day to Day” could cause confusion and give rise to inconsistencies and uncertainty because they are inconsistent with the new definition of casual employee in s 15A of the FW Act.

 

This is only the beginning of the Commission’s review and there will no doubt be further amendments announced as the work progresses.
If you would like to know more about the changes to the modern awards, the Fair Work Act 2009 (Cth) or the definition of a casual employee,  reach out to our dedicated Workplace Relations team today:

☎️ | (07) 4646 2621
✉️ | Submit an Online Request