WA Employer in Administration - FEG (Fair Entitlements Guarantee) Claim Denied

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1 November 2014
My father, brother and myself worked for a company that recently went into Administration.

Back in May, my father became a Director of this company for 27 days. This was due to the owners of the company asking for him to lend them money. After they had discussions with the bank, the bank advised that the easiest way for this to happen was if my dad was to become a director.

Papers were lodged with ASIC. Within the 27 days, the owners of the company decided that they did not need to borrow money from my dad and so the change was listed with ASIC and my dad was no longer a director.

At no point did he ever act as a Director, become any sort of signatory, implement policy or lend the company any money. Even the company directors have now signed a stat dec stating so.

We lodged with FEG and our claim was denied - my dad, because he was a director and my brother and I as we are relatives of him.

I find this to be really unfair and we are struggling without the $30k that is owed to us as a unit.

Can you please provide any advice that would assist me in proceeding with a review of their decision. Are there any cases where FEG has made exceptions to the rule before? There are exceptions to every rule.

Thank you

Paul Cott

Well-Known Member
LawConnect (LawTap) Verified
26 May 2014
Ballarat, Victoria

There are appeal mechanisms in place for FEG decisions - firstly an internal mechanism applies. Then I believe you can go to the Administrative Appeals Tribunal if that mechanism fails.

Check out their website - www.employment.gov.au - it has info in appeal rights.
Hope that helps.