Crackdown on misuse of FEG scheme – Government discusses reforms

The Federal Government is looking to reform the Fair Entitlements Guarantee to curtail businesses and directors from using the scheme of last resort for their own unfair advantage.

Last week the Department of Employment and Workplace Relations (DEWR) released a discussion paper on potential reforms to strengthen the existing legal framework to "future-proof the Fair Entitlements Guarantee (FEG) from misuse". The FEG is intended to operate as a scheme of last resort that guarantees certain employee entitlements in the event of business failure, where no alternative avenue exists to fund these entitlements. However, some employers use the scheme to relieve themselves of...

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Authors: Phil Quinlan, Amanda Coneyworth

Published Date: 27 February 2025

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