Document ID: chunk:federal_register_of_legislation:C2025C00185:section:596ac:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 596AC (pt 1/2)
Character Range: 2111583–2114328

596AC  Relevant agreements or transactions that avoid employee entitlements—civil contraventions

Entering into relevant agreement or transaction
 (1) A person contravenes this subsection if:
 (a) the person enters into a relevant agreement or a transaction (within the meaning of subsection 596AB(3)); and
 (b) the person knows, or a reasonable person in the position of the person would know, that the relevant agreement or the transaction is likely to:
 (i) avoid or prevent the recovery of the entitlements of employees of a company; or
 (ii) significantly reduce the amount of the entitlements of employees of a company that can be recovered.
Note: This subsection is a civil penalty provision (see section 1317E).
 (2) A person who is involved in a contravention of subsection (1) contravenes this subsection.
Note 1: Section 79 defines involved.
Note 2: This subsection is a civil penalty provision (see section 1317E).

Causing company to enter into relevant agreement or transaction
 (3) A person contravenes this subsection if:
 (a) the person is an officer of a company; and
 (b) the person causes the company to enter into a relevant agreement or a transaction (within the meaning of subsection 596AB(3)); and
 (c) the person knows, or a reasonable person in the position of the person would know, that the relevant agreement or the transaction is likely to:
 (i) avoid or prevent the recovery of the entitlements of employees of the company; or
 (ii) significantly reduce the amount of the entitlements of employees of the company that can be recovered.
Note: This subsection is a civil penalty provision (see section 1317E).
 (4) A person who is involved in a contravention of subsection (3) contravenes this subsection.
Note 1: Section 79 defines involved.
Note 2: This subsection is a civil penalty provision (see section 1317E).

Application of contravention provisions
 (5) Subsections (1) and (2) apply even if the company is not a party to the relevant agreement or the transaction.
 (6) Subsections (1), (2), (3) and (4) apply even if:
 (a) the relevant agreement or the transaction is approved by a court; or
 (b) the relevant agreement or the transaction has not had the effect or effects mentioned in paragraph (1)(b) or (3)(c), as the case may be; or
 (c) despite the relevant agreement or the transaction, the entitlements of the employees of the company are recovered.
 (7) However, subsections (1), (2), (3) and (4) do not apply if:
 (a) the relevant agreement or the transaction is, or is entered into under:
 (i) a compromise or arrangement between the company and its creditors or a class of its creditors, or its members or a class of its members, that is approved by a Court under section 411; or
 (ii) a deed of