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BackLeft without wages or answers, workers break silence on Bathla collapse
Left without wages or answers, workers break silence on Bathla collapse
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ABC Top Stories1 hour agoBusiness3 min readAustralia

Left without wages or answers, workers break silence on Bathla collapse

Hundreds of employees affected by the property developer's collapse face financial hardship and uncertain visa futures

Quick Look

  • Former Bathla Group employees are owed millions in unpaid wages and entitlements after the Sydney property developer entered voluntary administration in August owing at least $3.4 billion.
  • About 200 former staff have joined forces to demand answers from administrators Teneo, while temporary visa holders face potential loss of their right to remain in Australia.

AI-generated summary

Why It Matters

Bathla Group entered voluntary administration on August 25, triggering one of Australia's largest and most complex property insolvencies, owing at least $3.4 billion. Employee-related creditor claims are estimated at around $6 million covering wages, superannuation and leave entitlements. The NSW Supreme Court has extended the deadline for Bathla's second creditors' meeting until September 2027.

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After working for nine years at one of Sydney's biggest property developers, Jagdeep Singh has estimated he is owed $80,000 in unpaid wages and entitlements.

But more than two months after the company was labelled insolvent, the former stormwater engineer does not know whether he will recover the money.

He is among hundreds of workers affected when the developer entered voluntary administration in August owing at least $3.4 billion.

Now, former employees are speaking publicly for the first time about their fight to recover unpaid wages, missing pay slips and the personal toll of the collapse.

Dozens of former Bathla personnel have told the ABC they have struggled to find full-time work after losing their jobs.

Some have been forced to dip into their savings or borrow from friends and family to make do during challenging economic times.

Others face an even more uncertain future, with the loss of their jobs potentially jeopardising their right to remain in Australia.

"We are not asking the administrators to pay from its own funds," Mr Singh said.

Former workers left chasing millions

Mr Singh is part of a group of about 200 former Bathla personnel who have joined forces in recent weeks to demand answers from the company's administrators, Teneo.

In a September affidavit filed in the NSW Supreme Court, Teneo's senior managing director Andrew Scott put employee-related creditor claims at around $6 million, covering wages, superannuation and leave entitlements only.

More than a dozen former employees told the ABC they had experienced irregular wage payments and missing pay slips in the months leading up to the company entering administration.

The ABC has seen emails exchanged between the workers and Teneo.

In one response last month, the administrators acknowledged a "significant delay" in calculating employee entitlements, citing hard-copy employment contracts and an "outdated" payroll system which required "manual adjustments and additional review processes".

'I'm not sure what my future will be'

For some former employees on temporary employer-sponsored visas, losing their jobs has also put their futures in Australia at risk.

Former Bathla employee, Arjun, who asked not to be identified by his real name, told the ABC he was worried he would be required to leave the country after his job was terminated.

The draftsperson, who was recruited from overseas three years ago on a subclass 482 visa, said he was owed an estimated $10,000 in outstanding entitlements and had struggled to find another employer willing to sponsor him.

The ABC has sighted his termination letter and visa documentation.

"We have worked hard for this company, and we deserve to receive our outstanding entitlements," he said.

"I'm not sure what my future will be."

Temporary visa holders are not eligible for the federal government's Fair Entitlements Guarantee, a safety net designed to help employees recover certain unpaid entitlements when their employer collapses.

For these workers, recovering their money will depend on the outcome of Bathla's insolvency proceedings.

Uncertain over staying in Australia

Another former employee, Kelly, who also asked not to be identified by her real name, faces a similar predicament.

She is on a subclass 482 visa, while awaiting a decision on an employer-sponsored permanent residency application.

With the company's collapse, she faces uncertainty over the future of that application and her ability to remain in the country.

The graduate architect worked at Bathla for almost two and a half years and estimates she is owed about seven weeks of wages, outstanding superannuation and other entitlements.

"It's been a hard time, and we are near the end of the year, so there aren't many openings."

Kelly is among several former employees interviewed by the ABC who used Brothers Migration & Education Services, a migration agency co-owned by Rajinder Mohan, who is also a co-founder of Bathla.

The agency's listed business address is at the same location as Bathla's headquarters.

The agency is not among the Bathla companies in administration.

Workers face an uncertain wait

Bathla Group entered voluntary administration on August 25, triggering one of Australia's largest and most complex property insolvencies.

In a statement to the ABC, Teneo said it understood employees' concerns and was treating their entitlements as a priority.

The administrators said the "nature and complexity" of Bathla's employee and payroll records meant reconciling outstanding wages and entitlements was "taking longer than usual".

Teneo said the Bathla Group did not have sufficient funds to pay outstanding entitlements for at least six to 12 months.

Workers can generally access the government's Fair Entitlements Guarantee (FEG) scheme only when the employer enters liquidation, but not while it remains in administration.

However, Teneo said it was working with the federal government to secure early access to the scheme.

"The Administrators are hopeful that early access to FEG will be approved by the beginning of December."

Bathla did not respond to a request for comment.

University of Sydney law professor and insolvency expert Jason Harris said employees had rights to employment records and payroll information, even when a company was in administration.

"If it's taking a long time, I suspect it's because they don't have the money, or they don't have the information, or both," Professor Harris said.

He said workers could raise concerns about missing employment records and pay slips with the Fair Work Ombudsman.

Under insolvency laws, employees have priority over ordinary unsecured creditors for certain unpaid entitlements, but recovering their money depends on the funds available.

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The NSW Supreme Court has extended the deadline for Bathla's second creditors' meeting until September 2027.

With Christmas approaching, the uncertainty is taking its toll.

"In and around Christmas time, people plan for holidays," another former worker said.

"All we are planning is how we will get our money back."

What to Watch

AI outlook — possibilities, not facts

  • Early access to the Fair Entitlements Guarantee will be approved by the beginning of December

    Possible · Within weeks

  • Bathla's second creditors' meeting will take place by September 2027

    Very likely · Within months

Open Questions

  • When will Teneo complete the calculation of employee entitlements?
  • Will early access to the Fair Entitlements Guarantee be approved by the beginning of December?
  • How much of the estimated $6 million in employee claims will actually be recovered?
  • What will happen to temporary visa holders' residency applications if they cannot find new sponsors?

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This article was originally published by ABC Top Stories.

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