Former Mosaic Group Staff – ‘One Employer’ decision and its impact on Fair Entitlements Guarantee payments and Employee Entitlements
15/10/2025
We have received reports that the Fair Entitlements Guarantee (‘FEG’) will not be making further payments to former Mosaic Group staff. We have spoken with the Receivers’ office who confirm that this is the case.
To remind you, FEG is the government guarantee of employee entitlements. It is designed to ensure payments can occur where their company does not have enough assets to pay employee entitlements or there will be a very long delay in those payments being made. FEG is funded in part by recouping payments it makes from companies where they later pay a dividend to employee creditors.
While this may sound like a problem for former staff, it turns out that payments should be made soon by the Receivers, with former staff being paid in batches over the next 3-4 Fridays. The final payment of existing claims should occur by the second half of November. We are encouraged to hear that once Employee Entitlements are paid, the Receivers will also be able to meet outstanding superannuation liabilities, which were not covered by FEG.
Background
The ‘True Employer’ decision was handed down on 21 August 2025. The Court’s decision deals with a mixture of industrial and insolvency law issues; it is available here but in summary provides that former employees of the Mosaic Group are to be treated as employees of one company with funds sufficient to meet the employee entitlement claims. This means that funds raised from the Mosaic Brands employee entitlements will be paid before other creditors’ claims in accordance with the Corporations Act. Unlike FEG, the Receivers will be paying the claims of all employees, whether Australian resident or not.
Payment process
The Receivers have funds sufficient to pay the outstanding employee entitlements and outstanding amounts of superannuation (which would not have been paid by FEG). They have been provided with information about claims made to FEG but which had not yet been paid when FEG referred the matter to them. They will be working with this information and the information they have from Mosaic Brands to verify claims. Because of the number of staff to be paid, they are processing claims in batches, rather than waiting until all claims have been reviewed to make one large payment.
What do I need to do?
If FEG has already paid you, you are unlikely to receive any further entitlement payment other than any outstanding pre-appointment superannuation.
If you have made a claim on FEG and were awaiting payment, you should be paid by the Receivers before the end of November 2025.
If you had unpaid entitlements and had not made a claim on FEG or were not eligible to make a claim because of your visa, you should contact the Receivers’ office by email at [email protected] by 31 October 2025.
Your claim can then be assessed and paid by the Receivers.
If your superannuation had not been paid, the Receivers will be paying an amount equal to your outstanding claim, which the ATO will seek to pay to your Superannuation Fund as soon as practicable.
You should check your next annual Superannuation Fund statement to confirm receipt.
If you have any questions about the information above, please contact your local SDA Union Branch – click on the button below.
Get in touch with us.
Getting help to make your FEG claims now
12/03/2025
Thank you to the over 100 Mosaic workers who joined the SDA online last night to hear from the National Secretary Gerard Dwyer and from Kylee and Joe from the Department of Employment of Workplace Relations.
Early access to redundancy entitlements scheme for Mosaic Employees
28/02/2025
Today the Labor Government announced they will grant affected Mosaic employees’ early access to the Fair Entitlements Guarantee (FEG). This is an enormous benefit for Mosaic employees during challenging times.
The SDA has been pushing for this fast-tracked access throughout the ‘receivership period’ as it is crucial for Mosaic employees to have access to their entitlements as soon as possible.
FEG is a government scheme that provides financial assistance for employees who are impacted by their employer going into liquidation.
How will this work?
All affected Mosaic employees will have access to apply for the scheme once their employment with Mosaic has finished.
You will be able to apply to have your unpaid entitlements paid out earlier, instead of having to wait until the Mosaic Brands Group has been officially placed into liquidation – followed by a lengthy process of disbursement. Early release does involve a process which will take some time, but it will be months earlier than the liquidation alternative and it provides much greater certainty.
Eligible workers will be able to claim up to 13 weeks of unpaid wages, unpaid annual leave, long service leave, payment in lieu of notice (up to five weeks), and redundancy pay (up to four weeks per full year of service capped as per the standard scale). The SDA is here to assist members in this process in the months ahead.
Read more about the Fair Entitlements Guarantee (FEG) https://www.dewr.gov.au/fair-entitlements-guarantee.
The SDA welcomes this action taken by the Labor Government to genuinely support Mosaic employees and ensure they receive their unpaid entitlements.
The Minister for Employment and Workplace Relations Murray Watt will be meeting with some affected Mosaic members today.
The SDA will continue to keep you updated throughout this process.
Mosaic Receivership and Administration
Support for Mosaic Brands members – Voluntary Administration & Liquidation
29 January 2025
Mosaic Brands is now unlikely to be sold.
There are no potential buyers which means that the liquidation of the company appears inevitable.
What is liquidation?
Liquidation is the term used to describe the process of closing an insolvent business.
A third party, known as the liquidator, is appointed to sell the remaining assets of the business and engage with the remaining creditors (which includes employees).
What does this mean for employees?
In the event that the company is liquidated, all employees will be made redundant and your employment at Mosaic Brands will be terminated.
Upon termination, you will be entitled to payment for any accrued entitlements such as annual leave and redundancy.
When will I be paid my entitlements?
If liquidation occurs, the SDA has been advised by Administrators/Receivers that the payment of entitlements accrued before 27 October 2024 would not be paid until July 2025.
This is unacceptable and the SDA is arguing in relevant forums for the Department of Workplace Relations to have these payments are brought forward. This work by the SDA continues.
At this stage the Receivers/Administrators continue to make assurance that all entitlements will be paid in due course, however they are not prepared to guarantee that payment will be made on an employee’s last day of work.
The SDA will continue to press that these entitlements should be paid on an employee’s last day.
It is critical to know that if you leave your employment before you receive a notice of termination you will not be eligible for redundancy entitlements.
Alternative Employment Options
The SDA is speaking to Mosaic and reaching out to other fashion employers on behalf of members to explore future employment options. You will find an ‘Employment Services Guide’ link on the Mosaic intra-net and members are encouraged to use that. The SDA are working behind the scenes to maximise future employment opportunities with the other fashion companies.
The Department of Employment and Workplace Relations has also advised that the below employers have current vacancies:
Super Retail Group (Rebel, BCF, Supercheap, Macpac)
Susan Group (Susan, Susan Grae, Sportsgirl)
Bunnings
Price Attack
Coles
Woolworths
The SDA will continue to keep you informed of any developments. We’re here to support you every step of the way. If you have any questions, please contact your SDA Branch.
Resources for SDA members
The SDA is here to support all SDA members at Mosaic Brands throughout this difficult period.
Please contact us for information, advice and support.
You can also visit our resources page for helpful resources on mental health support and financial hardship support here.
SDA members receive information, support and advice from experts to answer any workplace question you may have.