Fair Entitlements Guarantee

fair entitlements guaranteeFair Entitlements Guarantee and General Employee Entitlements and Redundancy Scheme

Employees of a business may be entitled to financial help and Gov Entitlements based on the loss of certain entitlements due to the fact that their employer went bankrupt or went into liquidation.

The Australian Federal Government offers this help through the Fair Entitlements Guarantee (“FEG”) FEG Entitlement and another initiative called the General Employee Entitlements and Redundancy Scheme (“GEERS”).

An employee may be entitled to collect the FEG assistance if their employer went bankrupt or went into liquidation on 5 December 2012 or after.  Or an employee may be entitled to collect the GEERS assistance if their employer went bankrupt or went into liquidation before 5 December 2012.

Fair Entitlements Guarantee

The Fair Entitlements Guarantee (“FEG”) is a statutory scheme which gives assistance in the following:

  • Up to 13 weeks of wages which were left unpaid;
  • Accrued annual leave
  • Outstanding long service leave
  • Five weeks of payments in lieu of notice
  • Up to four weeks per year of employment in redundancy pay

Eligibility for Fair Entitlements Guarantee

Eligibility for the Fair Entitlements Guarantee (FEG) assistance includes former employees meeting all of the eligibility requirements outlined in the Fair Entitlements Guarantee Act 2012.  An employee is able to lodge a claim at the Fair Entitlements Guarantee online portal, click here to follow the link.  If you click the link then you will be taken to the Australian Federal Government’s website where there is a wealth of information on eligibility, how to apply, how to lodge a Claim Government Entitlements and what type of assistance is available.

TFC Contract Outworkers

If you are a contract outworker in the textile, footwear and clothing (“TFC”) industries then you may still be eligible for under the Fair Entitlements Guarantee.  This became available from 15 May 2013, so if your employer became insolvent or bankrupt from then, you may have some entitlements.  For more information read the Contract Outworkers Scheme Fact Sheet.

Where Can You Get Help

If you have been laid-off or just lost your job and you think that you are owed some outstanding entitlements, but your employer is not in liquidation or bankrupt, then you can seek help from a number of other organisations:

  1. Fair Work Ombudsman;
  2. Australian Securities and Investment Commission (ASIC); or
  3. The trustee of insolvency practitioner in charge of the business affairs of your previous employer.

Fair Work Ombudsman

If your employer has not become insolvent, either personally becomes bankrupt or the company goes into liquidation, then the Fair Work Ombudsman (“FWO”) will be able to provide you with information regarding the obligations meeting unpaid employee entitlements.

Australian Securities and Investment Commission (ASIC)

If you are an employee of a company which has been abandoned then you can make a request to ASIC for the company to be wound-up.  ASIC are the regulator for companies and helps protect creditors, investors and consumers.

If your former employer has had a receiver, manager or administrator appointed, or your employer has had a Debt Agreement Administrator appointed, then you are allowed to contact the insolvency lawyer for information regarding the likely outcome of the employer’s matter in relation to your situation.  To check if your employer is bankrupt or in liquidation you can do a search on the ASIC website at ASIC Connect.

If you are a worker and you have been made redundant because of the insolvency of your employer, then you may be eligible to the fair entitlements guarantee.
You can either click the link provided or call us directly on 1300 30 66 49