Fair Entitlements Guarantee (FEG): Who Qualifies and What You Get
If your employer has gone bankrupt, the FEG may provide payments for unpaid wages, annual leave, and redundancy pay.
The Fair Entitlements Guarantee (FEG) is a safety net designed to help workers receive certain unpaid payments if their employer becomes insolvent or goes bankrupt. It serves as a way to ensure that employees are not left without their basic entitlements when a company can no longer meet its financial obligations.
Who it's for
This scheme is specifically for employees whose employer has gone bankrupt. This applies to individuals who were working for a business that has officially entered insolvency proceedings and can no longer pay its staff.
What you get
If you qualify, you can receive payments to cover several types of owed money. This includes unpaid wages that were earned before the business closed, your accrued annual leave that was not taken, and redundancy pay if you were eligible for it under your employment terms.
What it costs you
There is no direct fee to apply for this scheme. However, the process requires you to spend time gathering and providing specific documentation. You will need to provide official proof of your employment history and evidence that your employer has indeed become insolvent. This documentation is essential for the government to verify that your claim is valid.
The catch to know
It is important to understand what this scheme does not cover. The FEG does not include payments for superannuation. If you are owed unpaid superannuation, this specific scheme will not pay it; instead, you must claim those funds through the ATO.
How to apply
- Gather all relevant documents that prove your employment history and the exact amount of money owed to you.
- Obtain official evidence regarding your employer's insolvency to confirm they are unable to pay.
- Contact the Department of Employment and Workplace Relations to begin the formal claim process.