The Fair Entitlement Guarantee Bill was introduced in parliament on 11 October 2012. If enacted, it will replace the GEERS (which presently operates on a purely executive basis) and boost the protection of entitlements of employees who lose their employment due to insolvency.
The new scheme will also cover employees subject to deed of company arrangements or equivalent bankruptcy proceedings.
As with the current GEERS “entitlement”, the new scheme will provide uncapped redundancy entitlements of up to four weeks per year of service. Payments may be made ahead of liquidation and regulations may be made to provide for payment to non-employees.
Claims rejected by the Department of Education, Employment and Workplace Relations will be able to be challenged in the Administrative Appeals Tribunal, something that is not possible at present.