If your employer cannot pay their debts

If the business is insolvent

A business is insolvent if it cannot pay its debts. An insolvent business may go into liquidation, or the owner of that business may declare bankruptcy. 

If this happens, your employer may not have the money to pay you the wages and entitlements you’re owed.

If eligible, you can make a claim to the Fair Entitlements Guarantee (FEG) scheme for payment of some of your entitlements, including:

• unpaid wages (up to 13 weeks) capped at the FEG maximum weekly wage
• unpaid annual leave and long service leave
• payment in lieu of notice (up to 5 weeks)
• redundancy pay (up to 4 weeks per full year of service).

The FEG scheme does not cover:

• unpaid employer superannuation contributions
• reimbursement payments
• bonus or commission payments.

Contact the Australian Taxation Office (ATO) if you’re owed any superannuation.

Or check your eligibility and submit a claim under the Fair Entitlements Guarantee scheme.

If the business has been abandoned but is not in liquidation

The Australian Securities and Investments Commission (ASIC) can help to recover any unpaid entitlements.

This may happen where the business is not in liquidation but the employer has abandoned it without paying what they owe.