In the matter of Branded Media Holdings Pty Limited (in liquidation); In the matter of Brand New Media Pty Limited (subject to a Deed of Company Arrangement)

The case involves an application for directions by the liquidators of Branded Media Holdings Pty Limited and the deed administrators of Brand New Media Pty Limited, seeking to establish whether the liquidators and deed administrators were justified in determining that certain entities within the corporate group were not employing entities. The companies in question were in liquidation or subject to a deed of company arrangement. The core dispute was whether these entities were merely employer of record entities and not true employers, particularly given that they had no assets to meet liabilities to employees, and another entity within the corporate group was responsible for paying the employees on behalf of the group.

The central legal issue before the court was whether the entities were genuinely employers of record only, and thus not liable to meet the employees' claims for unpaid wages and entitlements. The court was required to interpret the relevant provisions of the Fair Entitlements Guarantee Act 2014 (Cth) and determine the true nature of the employment arrangements within the corporate group. The court had to assess the relationship between the entities, the extent of their involvement in the employment arrangements, and the allocation of responsibilities for employee entitlements.

The court found that the entities were indeed employer of record entities and not true employers. It held that because the entities had no assets to meet the employees' claims and another entity within the corporate group was responsible for paying the employees, the liquidators and deed administrators were justified in concluding that these entities were not employing entities within the meaning of the Fair Entitlements Guarantee Act 2014 (Cth). The court reasoned that the true employer was the entity within the group that was responsible for paying the employees, and thus, the employer of record entities were not liable to meet the employees' claims for unpaid wages and entitlements. The court granted the application for directions, affirming the liquidators' and deed administrators' determinations.

The court's decision clarified the responsibilities of employer of record entities and provided guidance for liquidators and deed administrators in similar situations. The final orders of the court confirmed the liquidators' and deed administrators' positions, allowing them to proceed with their duties without being held liable for the employees' claims against the employer of record entities.