Unemployment caused by technological change is predicted to affect almost half of the 702 occupations examined by researchers .

The basis of the research was to look at what computers are able to do now, against what they will be able to do, within a 20 year horizon.

Based on this, researchers predicted great variances in job security in different industries noting that 87% of accommodation and food workers were at risk of replacement through automation compared to just 10% of information workers.

Researchers concluded the only thing that stands in the way of ever increasing computer power is creativity, social intelligence and manipulation of objects in unstructured environments.

In other words, you need to identify changes in the market and respond and adapt accordingly or you may face financial oblivion.

Company liquidation Looms with Technological Change

Not only will individuals be threatened with bankruptcy, but many businesses will face company liquidation because of the dramatic rise of computer power.

In fact, we have already witnessed the effect of the internet on Australian retail businesses and employment. How do bricks and mortar retailers adapt and remain viable in a global market where competitors have a number of relative advantages over the local business. It’s not easy but clearly it is possible to change and flourish as many of our retailers have done.

Technological change has already impacted our lives. This research simply points to the fact that as the speed of change increases, more and more of us have the possibility of being affected unless we look at and exercise our options.

Director Protection Strategies

If we can see a change on the horizon, is makes sense to prepare for it in order to survive.

If that change is the rise of computer power, the researchers in this article suggest the best way to prepare for it is by developing our creativity, our flexibility and social intelligence. By investigating these types of alternatives, we can then choose the best course of action for us.

This thought process also applies to a business facing company liquidation.

We know that because a liquidator acts for the benefit of the creditors, the process of liquidation threatens a director and their personal assets. Accordingly, it is important to investigate the available alternatives and to then choose a path that will best protect a directors’ personal assets. The Insolvency Experts can help you with this review in order to achieve Director Asset Protection.

Remember, this review must be performed before a company is placed into liquidation.

Will employees be paid in a company liquidation?

For those business that are not able to adapt, and for the employees that may lose employment because of a company liquidation, The Commonwealth Government provides the Fair Entitlements Guarantee Scheme (FEG). The scheme is designed to protect and deal with outstanding employee entitlements in the event of company liquidation.

The Fair Entitlements Guarantee scheme in most cases will pay out specific employee entitlements if employees are made redundant as a result of a company being placed into liquidation or voluntary administration.

FEG, which is to be seen as a legislative safety net of last resort, will pay out claims (limits apply) for the following entitlements:

• Unpaid wages – up to 13 weeks unpaid wages
• Unpaid annual leave
• unpaid long service leave
• payment in lieu of notice – 5 weeks maximum
• Redundancy – maximum of 4 weeks for each full year of service

FEG does not pay out unpaid superannuation and employees should be aware that the scheme will not pay out their entitlements if they resign after a liquidator or a voluntary administrator has been appointed. FEG will only respond to claims if their employment is terminated by the liquidator or a voluntary administrator.

FEG normally responds to employees claims within 12-16 weeks. Once an entitlement is determined, the funds are paid to the liquidator who must then distribute any payment, less applicable taxes, to the employee within a specified time period.

A Final Note

Change is inevitable.

No matter what the situation, sitting around and waiting for something to happen to you is not going to produce the best outcome. You need to take control by reviewing the situation and understanding the alternatives. Once that is done, select and act upon the best course of action for you.

Employees in industries where jobs may be threatened by technological change must change. Directors facing any changing environment must also do something.

If you are facing the possibility of change through financial difficulties, do not sit idle and allow events to overtake you. Take control, find out your options and act in your own best interest. Call The Insolvency Experts for help.

Source: smh.com.au

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Disclaimer
This article is not to be construed as legal advice but is presented for information and research purposes only. No guarantee implied or expressed is given in respect of the information provided and accordingly no responsibility is taken by The Insolvency Experts or any member of the company for any loss resulting from any error or omission contained within this article.