Employees
Have you been affected by the appointment of an external administrator?
The Corporations Act 2001 provides that employees are given a priority over other unsecured creditors for unpaid employee entitlements owing when a company goes into liquidation.
This means that if a dividend to unsecured creditors is paid, employees get first access to the funds available.
If you are an employee affected by one of our external administrations, go to our Current Matters page to see our latest report and download a proof of debt form to make a formal claim.
FEG Scheme
Unfortunately, not all liquidations have enough funds to ensure all employee entitlements are paid in full.
To assist employees affected by the insolvency of their employer, the Commonwealth Government has established the Fair Entitlements Guarantee Scheme or “FEG Scheme”.
Depending on the terms of your employment, the FEG Scheme allows eligible employees to claim:
- your unpaid wages - up to 13 weeks
- your unpaid annual leave and long service leave
- payment in lieu of notice (limits apply)
- redundancy pay (limits apply)
Outstanding superannuation is not covered by the FEG Scheme, although it is still afforded a priority under the Corporations Act 2001. Superannuation can only be paid if enough funds are recovered from the assets of a company.
If you believe you may be entitled to claim under the FEG Scheme, the Government has created the Eligibility for FEG assistance and How do I apply for FEG assistance? Information Sheets for you to consider.
Click here to make a claimOther assistance for Employees
The following are additional resources that may assist employees affected by the external administration of their employer: