Employees who have lost their job as a result of their business falling into liquidation may be eligible to receive Fair Entitlements Guarantee (FEG) assistance from the Australian Government. If you are unsure of your eligibility as for an FEG payment and don’t know the appropriate steps to take to make a FEG claim, read on.
What is a Fair Entitlements Guarantee (FEG) payment?
The FEG aims to provide Australian employees with monetary assistance in the case of their employers becoming insolvent. FEG payments protect an employee’s right to receive work entitlements that cannot be paid by their employer in the event of business liquidation or bankruptcy. These entitlements include – unpaid wages (up to thirteen weeks), unpaid annual and long service leave, payment in lieu of notice (up to five weeks) and up to four weeks redundancy pay per full year of service.
Who is eligible?
You may be eligible to receive FEG payments as an Australian employee if you:
- Were an Australian citizen or the holder of a permanent visa or special category visa at the time your employment ended.
- Lodged a claim online or completed the appropriate FEG Claim Form within twelve months of the date you lost your job/when your former employer had gone into liquidation.
- Lost your job due to your employer’s liquidation, or less than six months before the company’s liquidation.
- Are owed one of the entitlements mentioned above.
However, it is important to note that you will not be eligible to make a FEG claim if you:
- Were a director of the company which had fallen into liquidation within twelve months prior to falling into liquidation per s11 of the Fair Entitlements Guarantee Act 2012.
- Were contracted by the company which had fallen into liquidation.
- Do not meet certain eligibility conditions under the Fair Entitlements Guarantee Act 2012 as an Australian employee.
If you believe you are eligible to receive FEG payments as an Australian employee you can make a claim via the FEG online services or by completing the appropriate FEG Claim Form.
If your employer has become insolvent and you are unsure of your eligibility for a FEG payment please do not hesitate to contact us on 02 9331 0266 to discuss your options and next steps forward.