Federal Government Steps In to Secure Entitlements for Thousands of Mosaic Brands Workers
The federal government has announced it will provide early access to entitlements owed to thousands of employees of the collapsed fashion retail giant, Mosaic Brands Group.
This move ensures that workers will receive their unpaid wages and other benefits without having to wait for the company’s liquidation process to conclude.
Mosaic Brands, which operated 666 retail and online stores across Australia and New Zealand under popular brand names such as Millers, Noni B, Rivers, Katies, Autograph, Crossroads, W.Lane, and Beme, went into administration earlier this year.
More than 2,800 employees are owed a total of $22 million in unpaid entitlements.
The government’s intervention through the Fair Entitlements Guarantee (FEG) scheme will provide much-needed financial relief to affected workers, many of whom are part-time employees balancing work with caregiving responsibilities.
The Collapse of Mosaic Brands
Mosaic Brands, once a dominant player in Australia’s retail fashion industry, faced significant financial challenges in recent years.
The company’s portfolio included well-known brands such as Millers, Noni B, Rivers, and Katies, which operated across 666 physical and online stores.
Despite its extensive reach, the company struggled to adapt to changing consumer habits, increased competition, and the economic impacts of the COVID-19 pandemic.
In 2023, Mosaic Brands entered administration, leaving thousands of employees uncertain about their financial futures.
Receivers and managers from KPMG estimated that workers were owed approximately $22 million in unpaid entitlements, including wages, annual leave, and redundancy pay.
Government Intervention: The Fair Entitlements Guarantee Scheme
The federal government has stepped in to ensure that affected workers receive their entitlements promptly through the Fair Entitlements Guarantee (FEG) scheme.
Typically, the FEG is activated only after a company enters liquidation, but in this case, the government has expedited the process to provide immediate support to Mosaic Brands employees.
Employment and Workplace Relations Minister Murray Watt emphasized the importance of this decision, noting that many of the affected workers are women in part-time roles who rely heavily on their wages to support their families.
“This won’t solve every problem, but it will provide some certainty to a group of workers who aren’t highly paid and are dealing with a lot right now,” Senator Watt said.
“The Albanese government recognizes that this has been a stressful and drawn-out process for these employees, and we want to ensure they have as much financial security as possible.”
What Employees Are Entitled To
Under the FEG scheme, eligible workers can claim the following entitlements:
| 🔹 Entitlement | 📌 Description |
|---|---|
| 📅 Up to 13 Weeks of Unpaid Wages | Employees may claim wages for work performed but not yet paid, covering a maximum of 13 weeks. |
| 🏖️ Unpaid Annual Leave & Long Service Leave | Accrued but unused annual leave and long service leave entitlements are payable upon employer insolvency. |
| ⏳ Payment in Lieu of Notice | If an employer fails to provide the required notice period, employees may receive compensation for the notice period not worked. |
| 🔻 Redundancy Pay | Employees who qualify for redundancy payments may receive compensation based on their years of service. |
These payments are designed to provide a financial safety net for employees who lose their jobs due to their employer’s insolvency.
By granting early access to the FEG, the government aims to alleviate the financial strain on Mosaic Brands workers and their families.
The Impact on Workers
The collapse of Mosaic Brands has left thousands of employees in a precarious position.
Many of the affected workers are women in part-time roles, often balancing work with caregiving responsibilities.
For these individuals, the loss of income can have severe consequences, affecting their ability to meet everyday expenses such as rent, groceries, and utilities.
Senator Watt highlighted the unique challenges faced by these workers, stating, “Many of these employees are women who rely heavily on their pay to support their families.
By providing early access to their entitlements, we hope to ease some of the financial pressure they are experiencing.”
As Mosaic Brands stores gradually close across the country, employees are being let go as stock runs out.
The government’s intervention ensures that these workers will receive their entitlements sooner, providing them with greater financial stability during this difficult transition.
The Role of the Fair Entitlements Guarantee Scheme
The Fair Entitlements Guarantee (FEG) is a federal government program designed to protect employees when their employer becomes insolvent and is unable to pay their entitlements.
The scheme covers a range of unpaid benefits, including wages, leave, and redundancy pay, providing a crucial safety net for workers in vulnerable situations.
While the FEG is typically activated only after a company enters liquidation, the government has made an exception in the case of Mosaic Brands to ensure that workers receive their entitlements as quickly as possible.
This decision reflects the government’s commitment to supporting workers and their families during times of financial hardship.
The Broader Implications for the Retail Industry
The collapse of Mosaic Brands is a stark reminder of the challenges facing Australia’s retail sector.
The industry has been under significant pressure in recent years, with changing consumer preferences, increased competition from online retailers, and the economic fallout from the COVID-19 pandemic contributing to widespread instability.
For workers in the retail sector, the collapse of major employers like Mosaic Brands highlights the importance of robust workplace protections and government support programs like the FEG.
As the industry continues to evolve, policymakers and industry leaders must work together to ensure that workers are protected and supported through periods of transition and uncertainty.
A Call for Greater Corporate Accountability
The collapse of Mosaic Brands has also sparked calls for greater corporate accountability in the retail sector.
Critics argue that companies must take greater responsibility for their employees’ financial security, particularly in industries prone to economic volatility.
By ensuring that workers receive their entitlements promptly, the government’s intervention in the Mosaic Brands case sets an important precedent for corporate accountability.
It sends a clear message that employees’ rights and financial well-being must be prioritized, even in the face of corporate insolvency.
Conclusion: A Lifeline for Workers in Need
The federal government’s decision to provide early access to entitlements for Mosaic Brands workers is a significant step toward supporting employees affected by the company’s collapse.
By expediting the Fair Entitlements Guarantee process, the government has provided much-needed financial relief to thousands of workers, many of whom are women balancing work with caregiving responsibilities.
While the collapse of Mosaic Brands is a sobering reminder of the challenges facing Australia’s retail sector, the government’s intervention demonstrates its commitment to protecting workers and their families during times of crisis.
As the industry continues to evolve, it is essential that policymakers, employers, and industry leaders work together to create a more stable and secure future for all workers.
For more information about the Fair Entitlements Guarantee scheme and how it supports workers, visit the official government website.
