Resort staff still not paid

Tax issues behind delays, says Sands owner

FORMER employees of a Torquay resort are still waiting to be paid entitlements of up to $15,000 each, a year after the hotel and golf course was resurrected under new management.

The Sands director Paul Fielding said payments to former staff could be made by the end of this month but legal issues meant how the money would be paid, and the resulting tax implications, were under consideration.

The company that owns

The Sands, Destination Leisure Holdings, gave an undertaking in court it would pay entitlements owed to staff when the resort was sold last year.

A report produced in February last year by PKF Melbourne, which was the administrator of The Sands at the time, found about $560,000 was owed to employees, including $344,800 in superannuation and $133,788 in annual leave, in July 2020.

But when contacted by the

Geelong Advertiser, Mr Fielding said the amount owed to former workers was not that high.

However, he would not reveal the amount or how many former employees were owed entitlements.

A former employee owed more than $10,000 in leave and superannuation entitlements said they were not paid while on leave to care for a sick child.

“It’s been really difficult. I’ve gone to the doctors to seek help for my mental health. It’s been going for a year now,” the former employee said.

“My wife and I could really use that money.”

The Sands sold for $12.8m early last year and is now operated by Belgravia Leisure.

The 76ha resort, which has more than 100 rooms, an 18hole golf course, conference centre, restaurant and bar, went into administration in July 2020. At the time it had 110 staff.

Another former employee of The Sands, who worked in operations, said they were owed about $15,000 in annual leave, superannuation and other entitlements.

“I want to see Destination Leisure Holdings and Belgravia Leisure come through and pay what we are owed,” the worker said.

“They haven’t delivered on what they promised, that’s the thing that gets me. I just don’t know why they wouldn’t pay.”

Mr Fielding said the company that took over The Sands was not classed as the employer of the former staff, which had tax implications for the company and former workers.

He said people owed money had a “right to be frustrated”.

“The legalities are being worked through, we are very close to being in a position to settle, and we expect them to be settled before the end of March,” he said.

“There’s been a bit of to and froing between the ATO and (our) lawyers.”