What happens to my entitlements if my employer goes bankrupt?

If your employer goes into liquidation or bankruptcy, you may be owed unpaid wages, unused annual leave, payment in lieu of notice, and redundancy pay. The Australian Government's Fair Entitlements Guarantee (FEG) scheme acts as a safety net to cover these entitlements when the employer cannot pay them. You must lodge a FEG claim within 1 year of the insolvency event.

What is the Fair Entitlements Guarantee (FEG)?

The Fair Entitlements Guarantee (FEG) is an Australian Government scheme that provides financial assistance to employees who lose their job due to the liquidation or bankruptcy of their employer. FEG covers unpaid wages (up to 13 weeks), unpaid annual leave and long service leave, payment in lieu of notice (up to 5 weeks), and redundancy pay. Payments are capped at an indexed weekly amount (approximately $2,700 per week).

Do I get redundancy pay if my company goes into liquidation?

Yes. Under the Closing Loopholes Act 2023, the small business redundancy exemption does not apply in insolvency situations. This means that even if your employer had fewer than 15 employees, you are entitled to redundancy pay when the business enters liquidation. FEG will cover your redundancy entitlement based on the NES scale, though payments are subject to the FEG weekly cap.

How long does FEG take to pay out?

FEG claims typically take between 4 and 16 weeks to process once a valid claim has been lodged and all required information has been provided. Processing times depend on the complexity of the case, the number of employees affected, and whether the liquidator has provided the necessary employment records. You can check the status of your claim through the FEG portal on the Attorney-General's Department website.

Insolvency Entitlements Checker

Estimate what you're owed if your employer has gone into liquidation or bankruptcy, including your potential FEG (Fair Entitlements Guarantee) claim.

Last verified: 2 August 2026

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Insolvency Entitlements Checker

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