Ann: Redflow Limited enters Liquidation, page-8

https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-employees/liquidation-a-guide-for-employees/

Employee entitlements

In most cases, the liquidation of a company terminates the employment of employees.

If there are funds left over after paying the liquidator’s fees and expenses, employees have the right to be paid their outstanding entitlements before other unsecured creditors are paid (priority claims). Employee entitlements are grouped into categories (or classes) and paid in the following order:

• outstanding wages and superannuation
• outstanding leave of absence (e.g. annual leave and long service leave)
• retrenchment pay.

Each class must be paid in full before the next class is paid. If there isn't enough money to pay a class in full, the available funds are paid on a pro-rata basis (and the next class or classes will be paid nothing).

If directors and their spouses or relatives are employees, their priority claims for the period they are a director, spouse or relative of a director are limited to a maximum of:

• $2,000 for outstanding wages and superannuation
• $1,500 for outstanding leave entitlements.

Directors and their spouses or relatives are excluded employees and are not entitled to any priority retrenchment pay for the period they are a director, spouse or relative of a director. Any amounts left owing after these priority amounts are treated as an ordinary unsecured claim along with other unsecured creditors (e.g. trade creditors).

Employees may also be entitled to make a claim against the Fair Entitlements Guarantee (FEG).

Sometimes, the liquidator may continue to trade the business for a short period to help in the winding up. If this happens, employee entitlements accruing during this period (on terms agreed with the liquidator) are paid out of available assets as a cost of the winding up and before other outstanding employee entitlements are paid.