Consultation on reforms to address corporate misuse of the Fair Entitlements Guarantee (FEG) scheme

Support was expressed for:

• Strengthening the criminal offence provision;
• Expanding the parties who may initiate a civil recovery action;
• The introduction of a civil penalty provision; and
• Disqualification of directors who abuse the FEG scheme.

These measures should – if appropriately crafted and diligently enforced – deter, punish and recompense wrongful avoidance of employee entitlements.

We did not endorse the government’s proposal for corporate groups to be compelled to provide a contribution equivalent to any unpaid employee entitlements.

If you would like to discuss any aspect of this submission, please contact Lysarne Pelling, Senior Policy Adviser, on (02) 8248 2708 or at lpelling@aicd.com.au.