In the matter of C&T Grinter Transport Services Pty Ltd (In Liquidation) & Grinter Transport Pty Ltd (In Liquidation) (Controller Appointed)

In the matter of C&T Grinter Transport Services Pty Ltd (In Liquidation) & Grinter Transport Pty Ltd (In Liquidation) (Controller Appointed), the court had to determine the employment status of several individuals who were employees of Grinter Transport Services Pty Ltd (THG) before and after its assets were taken over by C&T Grinter Transport Services Pty Ltd. The primary dispute was whether these individuals should be considered employees of C&T or THG for the purposes of determining their entitlements in the liquidation of C&T.

The court was required to decide whether the employees of THG who continued to work after the takeover were employees of C&T. This involved examining various forms of evidence including tax file number declarations, wage slips, WorkCover policies, and instalment activity statements. The court had to determine if these documents indicated that C&T was the employer of these individuals.

The court concluded that the individuals in question were employees of C&T. The reasoning was based on a significant body of documentary evidence that consistently identified C&T as the employer. This included tax file number declarations, wage slips, and WorkCover policies all naming C&T as the employer. Additionally, payments for employee wages were made from C&T's bank account, and WorkCover premiums were paid by Grinter, indicating C&T's role as the employer. The court found that the evidence strongly supported the conclusion that C&T was the employer of these individuals.

As a result of this finding, the employees are to be treated as employees of C&T for the purposes of this proceeding. Consequently, their entitlements will be considered in the liquidation of C&T, which may result in minimal dividends due to the limited assets available. The court will invite submissions on the question of costs.