FAIR ENTITLEMENTS GUARANTEE (MOSAIC BRANDS GROUP OF COMPANIES IN ADMINISTRATION) DECLARATION 2025
EXPLANATORY STATEMENT
Issued under the Authority of the Minister for Employment and Workplace Relations
under section 49 of the Fair Entitlements Guarantee Act 2012
Purpose and operation of the Instrument
The purpose of this instrument is to declare that the Fair Entitlements Guarantee Act 2012 (the Act) applies to persons who were employed, but are no longer employed, by:
- Mosaic Brands Limited (Administrators Appointed) A.C.N. 003 321 579
- Noni B Holdings Pty Limited (Administrators Appointed) A.C.N. 614 340 537
- Noni B Holdings 2 Pty Ltd(Administrators Appointed) A.C.N. 626 335 760
- Millers Retail Pty Ltd (Administrators Appointed) A.C.N. 626 380 309
- Autograph Retail Pty Ltd (Administrators Appointed) A.C.N. 626 380 390
- Pretty Girl Fashion Group Holdings Pty Ltd (Administrators Appointed) A.C.N. 089 304 941
- Pretty Girl Fashion Group Pty Ltd (Administrators Appointed) A.C.N. 051 283 900
- Crossroads Retail Pty Ltd (Administrators Appointed) A.C.N. 626 380 541
- Katies Retail Pty Ltd(Administrators Appointed) A.C.N. 626 380 158
- Rivers Retail Holdings Pty Ltd (Administrators Appointed) A.C.N. 626 380 934
- W.Lane Pty Ltd (Administrators Appointed) A.C.N. 003 115 124
- Noni B Holdco Pty Ltd (Administrators Appointed) A.C.N. 627 001 389
- EziBuy Pty Ltd (Administrators Appointed) A.C.N. 058 215 722
(together called Mosaic Brands Group) which are entities under administration under Part 5.3A of the Corporations Act 2001 (the Corporations Act). The Act does not otherwise apply to persons whose former employer is in administration.
Legislative background
The Act creates a scheme to provide financial assistance for workers who have not been fully paid for work done for insolvents or bankrupts.
Section 10 of the Act sets out the conditions for an individual’s eligibility for an advance under the Act. One of the conditions is that an ‘insolvency event’ has happened to the person’s employer. An ‘insolvency event’, as defined in section 5 of the Act, happens to an employer:
- when a liquidator of the employer is appointed (provisionally or otherwise) under the Corporations Act; or
- when the employer becomes a bankrupt under the Bankruptcy Act 1966; or
- if the person is or was employed for a partnership by 2 or more of the partners - at the first time an event described above happens, or has happened, to all of the partners by whom the person is or was employed
but does not include the employer in administration under Part 5.3A of the Corporations Act.
Section 49 of the Act allows the Minister to declare that the Act applies to persons who were employed, but are no longer employed, by a specified employer that is under administration under Part 5.3A of the Corporations Act if satisfied that:
- The employer’s creditors are expected to resolve at a meeting convened under section 439A of the Corporations Act that the employer be wound up; and
- If the declaration is made, it will be practicable to administer the Act as it will apply because of the declaration in relation to the specified employer.
Effect of the declaration
The effect of the declaration is that the Act applies to former employees of entities in the Mosaic Brands Group as if the relevant administrator were a liquidator appointed when the administrator was appointed, and the reference to an ‘insolvency event’ in paragraph 14(2)(a) of the Act is a reference to this declaration being made.
This will allow any former employees of entities in the Mosaic Brands Group to make a claim under the Act and have their claims for an advance assessed and paid in accordance with the Act.
CONSULTATION
To be satisfied of the factors listed in subsection 49(2) of the Act, consultation was undertaken with the insolvency practitioners appointed to the Mosaic Brands Group.
REGULATion IMPACT STATEMENT
The Office of Impact Analysis was consulted regarding this instrument and indicated that a detailed Impact Analysis was not required (OIA25-09183).
The Declaration is a legislative instrument for the purposes of the Legislation Act 2003.
The Declaration takes effect on the day after it is registered on the Federal Register of Legislation.
This instrument is not exempt from sunsetting under the Legislation Act 2003.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Fair Entitlements Guarantee (Mosaic Brands Group of Companies in Administration) Declaration 2025
The Fair Entitlements Guarantee (Mosaic Brands Group of Companies in Administration) Declaration 2025 is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
The purpose of this instrument is to declare that the Fair Entitlements Guarantee Act 2012 (the Act) applies to persons who were employed, but are no longer employed, by entities in the Mosaic Brands Group which are entities under administration under Part 5.3A of the Corporations Act 2001 (the Corporations Act). The Act does not otherwise apply to persons whose former employer is in administration.
The Act creates a scheme to provide financial assistance for workers who have not been fully paid for work done for insolvents or bankrupts.
Section 10 of the Act sets out the conditions for an individual’s eligibility for an advance under the Act. One of the conditions is that an ‘insolvency event’ has happened to the person’s employer. An ‘insolvency event’, as defined in section 5 of the Act, happens when a liquidator of the employer is appointed (provisionally or otherwise) but does not include the employer in administration under Part 5.3A of the Corporations Act.
Section 49 of the Act allows the Minister to declare that the Act applies to persons who were employed, but are no longer employed, by a specified employer that is under administration under Part 5.3A of the Corporations Act if satisfied that:
- The employer’s creditors are expected to resolve at a meeting convened under section 439A of the Corporations Act that the employer be wound up; and
- If the declaration is made, it will be practicable to administer the Act as it will apply because of the declaration in relation to the specified employer.
The effect of the declaration is that the Act applies to former employees of entities in the Mosaic Brands Group as if the relevant administrator were a liquidator appointed when the administrator was appointed, and the reference to an ‘insolvency event’ in paragraph 14(2)(a) of the Act is a reference to this declaration being made.
This will allow any former employees of entities in the Mosaic Brands Group to make a claim under the Act and have their claims for an advance assessed and paid in accordance with the Act.
Human rights implications
Article 9 of the International Covenant on Economic, Social and Cultural Rights (the ICESCR) provides that, ‘the State Parties to the present Covenant recognise the right of everyone to social security, including social insurance.’ The Committee on Economic, Social and Cultural Rights has stated that the right to social security encompasses the right to access benefits, whether in cash or in kind, without discrimination in order to secure protection from lack of work-related income caused by unemployment.[1]
The Act establishes an assistance scheme that is intended to operate as a safety net for persons whose employment has ended due to the insolvency of their employer. This safety net could be characterised as ‘social insurance’ because it ensures that employees’ unpaid entitlements are met when their employer enters liquidation or bankruptcy. It thus seeks to protect individuals from lack of work-related income due to unemployment.
This declaration expands the operation of the Act to an employer in administration under the Corporations Act 2001. The effect is advances of unpaid employment entitlements can be made to eligible former employees. This supports the right to access benefits in order to secure protection from lack of work-related income caused by unemployment.
Conclusion
This Declaration is compatible with human rights as it does not raise any human rights issues.
Senator the Hon Murray Watt
Minister for Employment and Workplace Relations
Attachment A
NOTES ON SECTIONS
Section 1 – Name
Section 1 provides that the title of the instrument is the Fair Entitlements Guarantee (Mosaic Brands Group of Companies in Administration) Declaration 2025.
Section 2 – Commencement
Section 2 provides that the instrument commences on the day after it is registered on the Federal Register of Legislation.
Section 3 – Authority
Section 3 provides that the instrument is made under section 49 of the Fair Entitlements Guarantee Act 2012.
Section 4 – Declaration
Section 4 declares that the Fair Entitlements Guarantee Act 2012 applies in relation to persons who were employed, but are no longer employed, by the specified entities in the Mosaic Brands Group which are entities in administration under the Corporations Act 2001.
[1] Committee on Economic, Social and Cultural Rights, General Comment 19, The Right to Social Security, U.N. Doc. E/C.12/GC/19 (2008)