Many UWU members have lived experience of having to rely on the Fair Entitlements Guarantee (FEG) when companies transfer their assets, phoenix their business, or otherwise avoid paying employee entitlements during liquidation.
UWU is broadly supportive of the reforms put forward in DEWR’s discussion paper, as UWU members may find over the course of their working lives that they require the assistance of the FEG scheme.
Members of our union work in hospitality, contract cleaning, early childhood education and care (ECEC), and across other industries where corporate misuse of FEG occurs.
The FEG is an important safety net for Australian workers, but the corporate misuse of the scheme means some workers may never see the full payment of their employee entitlements (e.g. superannuation), nor receive any compensation.
UWU advocated for reform including: reducing the ability of Directors and those involved to hide behind complex corporate structures, changes to the civil penalty provisions and the inclusion of superannuation in FEG.
Download the full document for more detail.
UWU Submission to the Department of Employment and Workplace Relations consultation on the Corporate Misuse of the Fair Entitlements Guarantee [PDF]