If your employer goes into liquidation or bankruptcy

In short

File a claim with the liquidator (companies) or Official Assignee (sole traders/partnerships). Wages in the last 4 months, holiday pay and redundancy compensation can be a preferential claim, up to a legal cap ($31,820 as at 30 Sept 2024; check current). Apply to Work and Income straight away; don't wait for the claim.

What happens

Your job may end or transfer to a new owner if the business keeps trading. Existing personal grievance claims against the employer stop unless the High Court or the liquidator gives permission.

Your claim

Wages or salary (incl. commission) earned in the 4 months before liquidation or bankruptcy
Holiday pay owed
Redundancy compensation
Deductions taken from your pay but not passed on (KiwiSaver, child support, student loan)
Certain ERA or Employment Court awards relating to that period

Payment normally occurs at the end of the process, and you may not receive everything. Keep records of hours worked and unpaid wages.

What to do now

Apply to Work and Income immediately.
File your claim with the liquidator or Official Assignee.
Keep payslips, your agreement and any messages about unpaid wages.
Contact Employment NZ on 0800 20 90 20 for advice.

Sources

Employment NZ: Liquidation or bankruptcy (opens in a new tab)

General information only. Confirm with the agency for your situation. Spotted something out of date? Email help@unemployed.nz.