Palmer’s Nickel Refinery and the Fair Entitlements Guarantee

Table of Contents

Share at:

There has been wide coverage of the liquidation of Queensland Nickel, the company ultimately owned by Australian billionaire Clive Palmer. This has left hundreds of workers out of pocket and without employee entitlements in the order of some $74 million.

Ordinarily there would be little recourse for the employees except perhaps legal action against the company directors as individuals, however the Australian Government passed legislation to set up the Fair Entitlements Guarantee which aims to protect workers who are left out of pocket for the liquidation or bankruptcy of their employers. Eligible employees can apply for:

  • Unpaid wages up to 13 weeks
  • Unpaid annual and long service leave
  • Payment in lieu of notice (that is, for the period to be paid after being given notice of termination, up to 5 weeks)
  • Redundancy pay

An eligible employee would have to apply within 12 months of being terminated or the liquidation/bankruptcy, with contractors and non-citizens generally unable to claim.

The fund has had its fair share of usage and controversy, with $261.65 million being paid out under the scheme in 2012-13 and the government in 2014 making a failed attempt to cap payments. Major payouts include to a company managing employment by chocolate company Darrell Lea, electronics store Dick Smith and to a Malcolm Turnbull-backed company that monetised sporting content.

Queensland Nickel will join that list of infamous corporate collapses in Australia and the largest to date. The Government has appointed a special liquidator in an attempt to claim back some of the taxpayer dollars going to workers via the FEG scheme.

Let us know your thoughts on Palmer’s Nickel Refinery and the Fair Entitlements Guarantee by tagging us #lawpath or @lawpath.

Share at:

Simplify creating legal documents today

Browse through Lawpath's AI tools which can be used to draft, review and refine legal documents today!

Related Articles

Company Setup Costs and Tasks in Australia for 2026-2027: A Simple Guide to Business Registration

Are you wondering how much it costs to start a company in Australia? Check out our detailed guide with pro tips inside!

When Are Employees Entitled to Paid Breaks?

Know your rights to paid breaks in Australia. This guide explains Fair Work rules for rest breaks (paid) vs. meal breaks (unpaid) to ensure compliance.

17 Changes Hitting Australian Businesses on 1 July 2026

What July 1 changes affect Australian businesses in 2026? Here’s what to know about super, wages, tax and compliance.

Do I Have to Pay Tax on Distributions From an Irrevocable Trust?

Understand how to pay tax on trust distributions. Ensure compliance and maximise your tax benefits today.

FY26 Dates: Key Deadlines and Milestones You Can’t Miss

Here is your guide to key tax dates in Australia. From BAS lodgement to tax returns, keep these dates in mind to ensure tax compliance.

How Asset Depreciation Works for Australian Small Businesses: A Complete Tax Guide

Confused about asset depreciation this EOFY? We’ve got your back. Our guide covers key rules for small businesses, so you can ensure compliance.