The Hidden Financial Cost Of Covid....
More than 20,000 payments totalling $367m made under Fair Entitlements Guarantee in three years
Thousands of payments totalling more than $367 million have been paid out to employees of collapsed companies since the Covid-19 pandemic.
Taxpayers have spent $367.08m paying out employees of collapsed businesses since the onset of the Covid-19 pandemic.
Data from the Department of Employment and Workplace Relations reveals more than 20,000 payments have been made under the Fair Entitlements Guarantee Act between March 1, 2020 and May 31, 2023.
Under the FEGA, workers are able to claim up to 13 weeks of unpaid wages, unpaid annual leave and long service leave and some redundancy pay if they have lost their job due to the insolvency of their employer.
Of the payments made during the three year period, 2413 payments were related to the insolvency of large employers with more than 200 employees; 12,385 were related to medium size employers (15-199 employees) going bankrupt, and 5468 payments were made due to small businesses (less than 15 employees) collapsing.
Victoria had the highest number of claims paid, with 6810 payments totalling $128.51m over the three years; followed by NSW, where $107.9m was paid out to 5715 claimants.
There were 3946 claims paid in Queensland, totalling $65.15m.
In the last year alone, amid skyrocketing inflation and a weakening economy, 6416 payments totalling $126.85m were made.
Last month?s budget suggested the government expects to fork out $283.46m in the year ahead to employees made redundant as a result of insolvencies, but that payments required to be made under the Act would lower from 2024 through to 2027.
More; https://www.news.com.au/finance/business/more-than-20000-payments-totalling-367m-made-under-fair-entitlements-guarantee-in-three-years/news-story/c2632e83542ab6b8686ebb6a3ec363b8
More than 20,000 payments totalling $367m made under Fair Entitlements Guarantee in three years
Thousands of payments totalling more than $367 million have been paid out to employees of collapsed companies since the Covid-19 pandemic.
Taxpayers have spent $367.08m paying out employees of collapsed businesses since the onset of the Covid-19 pandemic.
Data from the Department of Employment and Workplace Relations reveals more than 20,000 payments have been made under the Fair Entitlements Guarantee Act between March 1, 2020 and May 31, 2023.
Under the FEGA, workers are able to claim up to 13 weeks of unpaid wages, unpaid annual leave and long service leave and some redundancy pay if they have lost their job due to the insolvency of their employer.
Of the payments made during the three year period, 2413 payments were related to the insolvency of large employers with more than 200 employees; 12,385 were related to medium size employers (15-199 employees) going bankrupt, and 5468 payments were made due to small businesses (less than 15 employees) collapsing.
Victoria had the highest number of claims paid, with 6810 payments totalling $128.51m over the three years; followed by NSW, where $107.9m was paid out to 5715 claimants.
There were 3946 claims paid in Queensland, totalling $65.15m.
In the last year alone, amid skyrocketing inflation and a weakening economy, 6416 payments totalling $126.85m were made.
Last month?s budget suggested the government expects to fork out $283.46m in the year ahead to employees made redundant as a result of insolvencies, but that payments required to be made under the Act would lower from 2024 through to 2027.
More; https://www.news.com.au/finance/business/more-than-20000-payments-totalling-367m-made-under-fair-entitlements-guarantee-in-three-years/news-story/c2632e83542ab6b8686ebb6a3ec363b8
