Who is the true employer? Responsibility for payment of employee entitlements in insolvency

The question of the ‘true employer’ of the Mosaic Brands, raised in this judgement, highlights the need for lenders and key stakeholders to consider the commercial realities of large corporate groups when it comes to the distribution of circulating asset realisations.

Last month, the Supreme Court of NSW handed down its judgement in response to the question of the 'true employer' of the 2,800 employees of the Mosaic Brands Group (the Group). The Court concluded the true employer was not the counterparty to the employment contracts but instead the head entity, which exerted ultimate control over the staff and had the capacity to meet employee payment obligations. The first ranking secured lender was supportive of employees being paid out in full from the ...

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Authors: Amanda Coneyworth, Sarah Arnfield

Published Date: 25 September 2025