Document ID: chunk:federal_register_of_legislation:C2025C00185:section:596ab:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 596AB (pt 1/2)
Character Range: 2107372–2110155

596AB  Relevant agreements or transactions that avoid employee entitlements—offences

Offences of entering into relevant agreement or transaction
 (1) A person contravenes this subsection if the person enters into a relevant agreement or a transaction with the intention of, or with intentions that include the intention of:
 (a) avoiding or preventing the recovery of the entitlements of employees of a company; or
 (b) significantly reducing the amount of the entitlements of employees of a company that can be recovered.
Note: A contravention of this subsection is an offence (see subsection 1311(1)).
 (1A) A person contravenes this subsection if:
 (a) the person enters into a relevant agreement or a transaction; and
 (b) the person is reckless as to whether the relevant agreement or the transaction will:
 (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: A contravention of this subsection is an offence (see subsection 1311(1)).

Offences of causing company to enter into relevant agreement or transaction
 (1B) 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; and
 (c) the person does so with the intention of, or with intentions that include the intention of:
 (i) avoiding or preventing the recovery of the entitlements of employees of the company; or
 (ii) significantly reducing the amount of the entitlements of employees of the company that can be recovered.
Note: A contravention of this subsection is an offence (see subsection 1311(1)).
 (1C) 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; and
 (c) the person is reckless as to whether the relevant agreement or the transaction will:
 (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: A contravention of this subsection is an offence (see subsection 1311(1)).

Application of offence provisions
 (2) Subsections (1) and (1A) apply even if the company is not a party to the relevant agreement or the transaction.
 (2A) Subsections (1), (1A), (1B) and (1C) 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)(a) or (b), (1A)(b), (1B)(c) or (1C)(c), as the case may be; or
 (c) despite the relevant agreement or the