The Fair Entitlements Guarantee (FEG) is a legislative safety net for employees who have lost their job due to their employer’s liquidation or bankruptcy and are unable to recover their entitlements through other means.
If you are an eligible employee, FEG may cover the following unpaid entitlements:
- Unpaid wages – up to 13 weeks
- Annual leave
- Long service leave
- Pay in lieu of notice – capped at 5 weeks
- Redundancy pay – capped at 4 weeks for each full year you worked
FEG does not cover unpaid superannuation guarantee amounts required to be paid by employers.
Making a FEG claim
If you have lost your job because your employer went into liquidation or bankruptcy, you can apply for FEG using FEG Online Services or by filling out a claim form and sending it to the Department of Employment and Workplace Relations (the department).
It is important that you submit your claim as soon as possible because FEG has strict cutoff times.
Support for insolvency practitioners
Insolvency practitioners play a key role in FEG as the primary point of contact for former employees who are owed employment entitlements due to their employer’s insolvency.
The department relies on information verified by the insolvency practitioner because they have access to the employer’s records.
Insolvency practitioners use FEG IP Online to manage FEG tasks sent by the department.
FEG Recovery Program
Since 2015, the FEG Recovery Program has been helping recover money the Australian Government has paid to employees when their employer has gone out of business.
It does this by:
- Funding liquidators to take legal action and recover assets they otherwise couldn’t pursue.
- Reducing the need for FEG payments by identifying company assets or other funds that can be used to pay employee entitlements.
These efforts help return more money to the Commonwealth and improve outcomes for employees when businesses go bankrupt or become insolvent.
Providing feedback and reporting concerns
The department is committed to delivering excellent service to our stakeholders and the Australian community by being open to feedback, responsive to concerns about FEG claims, and encouraging the reporting of suspected fraud or illegal phoenix activity.