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

How to Lodge Your Individual Tax Return (2026 Update)

Not sure how to get your taxes sorted? Read this article for everything you need to know about filing your individual tax return.

How to Maximise Your Tax Refund for 2026

If you’re looking to maximise your tax refund while staying compliant, check out our detailed guide with crucial 2026 updates.

Instant Asset Write-Off: Small Business Guide (Australia)

Looking to maximise your tax savings? Check if the instant asset write-off is right for your small business and learn how to use it compliantly.

How to Calculate Negative Gearing Before EOFY (2025–26 Guide)

Understand the implications of negative gearing on property tax as you get ready for EOFY.

What Can You Claim on Tax? (2026 Update)

Wondering what can you claim on tax? Our 2026 guide covers Australian tax deductions, ATO requirements, and record-keeping tips for a smoother tax time.

How Small Businesses Can Leverage Carry Forward Losses in Australia

Can you carry forward losses from this year in the future? What are the new carry-back loss rules? All this and more in our guide.