OSS Group subsidiary in voluntary liquidation after ex-staffer wins compensation

OSS Group subsidiary in voluntary liquidation after ex-staffer wins compensation

Liquidator's report says shareholder put company under after losing an employment dispute.

Credit: Dreamstime

A subsidiary of OSS Group is in voluntary liquidation after the Employment Relations Authority (ERA) awarded $76,700 to its former sales and marketing manager.

HR Processing 2008, formerly called OSS Limited, was put into liquidation earlier this month after the ERA awarded the sum to Brett Arthur, who was employed by OSS Limited for five months before a restructuring disestablished his position.

OSS Group, a longstanding IBM partner, is still trading.

The ERA decision, which drew media coverage late last year, found OSS Limited failed to follow proper processes by not offering Arthur a position in the company when it became vacant during his notice period.

HR Processing 2008 has now been placed in liquidation by a resolution of its shareholders, according to the first liquidator's report.

"The company operated by charging clients for professional services provided," the report from McDonald Vague said.

"A judgment was made in a dispute with a previous [employee] causing a significant unbudgeted cost. The shareholder has therefore decided to voluntarily put the company into liquidation."

HR Processing 2008 had its registered name changed from OSS Limited the day before liquidators were appointed, according to Companies Office records.

According to a statement of financial position prepared by the liquidators, it now owes $96,553 to an "ex employee" and $3058 to ACC.

The company's total deficiency is estimated at $99,353.

The sole director and ultimate owner of HR Processing 2008, Ian Soffe, told Reseller News it was a general purpose company within the group that no longer served any purpose. 

It had been liquidated as part of a natural administrative tidy-up, he said.

Former employee Arthur said he first heard the company was in liquidation while at the Employment Relations Authority preparing for a conference call to enforce compliance.

Arthur said he would be taking advice on his next steps, if any, to pursue the debt.

"It's very disappointing," he said.

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