The Fair Entitlements Guarantee Bill 2012 has been introduced into Commonwealth Parliament.

If passed it will replace the current General Employee Entitlements and Redundancy Scheme.

The primary objective of the Bill is to provide a scheme for the provision of financial assistance (called an ‘advance’) to former employees where the end of their employment is linked to the insolvency or bankruptcy of their employer. After making an advance, the Commonwealth assumes the individual’s right to recover the amount that was advanced through the winding up or bankruptcy process of their employer.

Once eligibility has been established, the Bill provides for the determination of the amount of an advance that a person is entitled to. A person’s entitlement is comprised of their unpaid entitlements in relation to unused annual leave, unused long service leave, payment in lieu of notice, redundancy pay and wages for a 13-week period.