logo
Receive the latest mybusiness news
SUBSCRIBE TO OUR NEWSLETTER
Copyright © 2020 MOMENTUMMEDIA

SME forced onto payment plan to payout worker

Adam Zuchetti
Adam Zuchetti
12 January 2018 1 minute readShare
Change purse, coins

A Victorian business has been forced to accept intervention from the Fair Work Ombudsman after finding itself unable to payout a worker’s termination entitlements.

The Fair Work Ombudsman (FWO) was contacted by the former retail manager who expressed concerns about the length of time it was taking to receive their termination payout from their former employer, which included annual and long service leave.

After the FWO’s intervention, the business revealed it was facing cash flow pressures that rendered it unable to make the $19,000 payout in one lump sum.

Advertisement
Advertisement

Instead, the FWO facilitated the negotiation of a weekly payment plan to ensure the worker was paid out without threatening the viability of the business.

The case is just latest to highlight the cash flow pressures facing many SMEs, particularly at the hands of late payments and the dreaded wrongful or fraudulent chargebacks.

 

As previously reported by My Business, state governments as well as multinational corporations are failing to address the issue of payment terms with the same rigour as the federal government and many of our largest companies.

SPONSORED CONTENT

 

SME forced onto payment plan to payout worker
mybusiness logo
Adam Zuchetti
Adam Zuchetti

Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016. 

The two-time Publish Awards finalist has an extensive journalistic career across business, property and finance, including a four-year stint in the UK. Email Adam at [email protected]

Leave a Comment

Latest poll

Which of the following stimulus measures has had the greatest impact on your business?