Browsing: Insolvent employers


Compensation denied after post-sacking threat

A FWC member has applied the "well known 'duck principle'" in holding that a tyre recycling company suspected of phoenixing unfairly sacked a worker who complained about unpaid superannuation, before threatening to kill a director.


FEG entitlement not dependent on employer's contributions: AAT

The AAT has accused the Attorney-General's Department of "studied ambiguity" in finding it mistakenly denied a worker up to $23,600 under the FEG scheme because his insolvent employer neglected to contribute to an industry entitlements fund.


FEG allocations reduced, as businesses stay afloat

The Morrison Government has cut back funding for the Fair Entitlements Guarantee in the 2021-22 Federal Budget, but still expects an increase in claims as COVID-19 support for business is wound back and more employers go into liquidation.



Unions back Bain's Virgin takeover

Unions have vowed to hold new Virgin Australia owner Bain Capital accountable for its promises, after they were among key creditors that backed a deed of company arrangement to complete the sale process for the stricken airline.


Tribunal orders A-G's to make FEG retrenchment payment

The AAT has overruled the Attorney-General's Department's refusal to make a FEG redundancy payment to a worker who claims she stayed on at the administrator's request to help with winding-down a failed company, but then had her retrenchment payout denied when employee numbers fell from 60 to below the eligibility threshold of 15.



Crown says failed restaurant not a joint venture

Melbourne's Crown Casino is staring down calls to pay about $4.5 million in employee entitlements owed by the operator of a celebrity restaurant on its premises.


Hefty penalty for KKR-backed company that forged payslips

A company "motivated by malice" when it forged documents to cut the leave balance of a chief operating officer it perceived as "a thorn in its side" has been ordered to pay $250,000 in penalties and unpaid entitlements.


Tribunal rebuffs worker's plea to plug FEG 'empathy gap'

The AAT has rebuffed a claim of unfair treatment under the Fair Entitlements Guarantee from a worker who claimed she missed out on a redundancy payment because of her loyalty and empathy in staying-on with a failed company as its employee numbers dropped below the small business threshold.


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