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How will my employees be paid if my company is in liquidation?

Eligible employees are able to lodge a claim for their unpaid wages and entitlements through the Fair Entitlements Guarantee (“FEG”) scheme of the Attorney-General’s Department.

Eligible employees may be able to claim the following through FEG:

  • Unpaid wages – up to thirteen (13) weeks;
  • Unpaid annual leave and long service leave;
  • Payment in lieu of notice – up to five (5) weeks; and
  • Redundancy pay – up to four (4) weeks per full year of service.

Eligibility requirements to access the FEG scheme are as follows:

  • You were an Australian Citizen or held a permanent visa or special category visa that allows you to stay and work in Australia at the time your employment ended.
  • You have lodged an effective claim within twelve (12) months of the date your employment ceased or the date of liquidation (whichever is later); and
  • You are owed one of the following entitlements: wages, annual leave, long service leave, redundancy or payment in lieu of notice.

You will not be eligible under the FEG scheme if, for example:

  • You were a contractor; or
  • You are (or were within 12 months before the date of liquidation) a director of the company, or a spouse or relative (as defined by the Corporations Act 2001) of an employee director of the company.

For further information on the FEG scheme and how to submit a claim, please visit the FEG website at https://www.ag.gov.au/FEG or access the information sheet here. Information sheet to be downloaded from – https://www.ag.gov.au/industrial-relations/publications/general-information-claimants

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