Milardovic and Secretary, Department of Employment

This matter concerned an application by Mr Milardovic for an advance under the *Fair Entitlements Guarantee Act 2012* (Cth) (FEG Act). The dispute centred on whether Mr Milardovic was eligible for such an advance, which required his employment to have ended due to the insolvency of his employer, Vemco Services Pty Ltd (VS), and for him to have made his claim within six months of the appointment of insolvency practitioners. Mr Milardovic ceased working for VS on 7 May 2014, following notification of a restructure affecting his position, and subsequently claimed redundancy pay. Liquidators were appointed to VS on 2 June 2016. The Secretary, Department of Employment, opposed the claim, arguing that Mr Milardovic's employment did not end due to insolvency and that the six-month time limit had expired. The decision was heard by K Parker M.

The primary legal issues before the court were to determine when Mr Milardovic's employment effectively ended, whether VS was insolvent at the time of that termination, and if the end of his employment was a consequence of VS's insolvency. The court was required to consider the meaning of insolvency in the context of the FEG Act and the indicia that might point to such a state. Furthermore, the court had to assess whether the six-month period for claiming FEG assistance had expired before Mr Milardovic lodged his claim, given the dates of his cessation of work and the appointment of insolvency practitioners.

The court reasoned that Mr Milardovic's employment ended on 7 May 2014, when he was notified of the restructure and ceased working, rather than at a later date when redundancy pay was awarded. The court found that there was insufficient evidence to conclude that VS was insolvent on 7 May 2014. While the administrators' report indicated that VS *may* have been insolvent from September 2015, this was after Mr Milardovic's employment had ended. The court noted that a previous Federal Court decision had found VS was not an "insolvent company" for the purposes of certain provisions at the time of penalty orders in March 2016. Consequently, the court determined that Mr Milardovic's employment did not end due to the insolvency of VS, and therefore he was not eligible for an advance under the FEG Act. The decision was affirmed.