Soon-to-be dad signs contract at tech startup for $150,000
The promise of a better and more favourable work opportunity than a current job may entice someone to switch work and take the risk.
Yet, an Australian worker was left fuming after he was dropped from his new work before his first day in the office.
The Australian soon-to-be dad, “Lucas,” signed a contract at a technology start-up called Zenbly Pty Ltd, which provided operating systems for Australian gyms.
He previously worked at a tech and sales job for six years but decided to switch to Zenbly as he was given an “attractive offer” of over $150,000, only to be dropped because the company had collapsed.
The Fair Work Commission (FWC) recently dealt with the case of a worker who claimed unfair dismissal because she refused to perform tasks outside her job description, saying that she was “uncomfortable” doing them
What caused the sudden failure?
According to Australian Securities and Investments Commission (ASIC) data obtained by news.com.au, Zenbly went into liquidation, which came as a surprise to everyone, even the company’s director.
“I went back and forth with [Zenbly’s CEO] for about a week before I reached out to the administrators directly,” Lucas told The Advertiser.
“It was only then I found out that I was not going to start on 16 May, the administrators filled me in and advised there was no role to go to, and they were going to liquidate the company.”
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Zenbly’s liquidators, Alan Walker and Glenn Livingstone of WLP Restructuring, wrote in a letter Lucas received that the company failed due to the demand for a large debt to be paid.
Reports showed that the company owed $2.6 million to 18 creditors, and at the time Zenbly collapsed, 17 employees were owed $221,000. However, because Lucas did not perform any work yet, he was not owed any entitlement.
“It didn’t feel real,” Lucas said. “I knew it was a bit more of a risk with a start-up, but I didn’t think it would happen before it started. It was a bit stressful, bit of a shock.”
In 2020, the start-up company had a net loss of $93,000, and in the subsequent year, it had a larger liability of $372,000, according to reports.
The Fair Work Commission (FWC) dealt with an unfair dismissal case involving out-of-work misconduct where the worker was at a bar and made threats under the influence of alcohol.
Zenbly ended for several reasons, including “launching an expensive software that took too long to turn a profit, poor management of expenses and reliance on outside funding to keep the company afloat because it was undercapitalized,” The Advertiser reported.
Zenbly’s liquidators did not respond to news.com.au for comments regarding the issue, but reports showed that Zenbly’s software ended up being sold for only $500,000 to another tech outfit.
Luckily, months after Zenbly’s collapse, Lucas landed another job and now works at another start-up company, according to reports.